Dimension: 1.8.1 Formulation, examination, amendment and approval
This dimension concerns all aspects of the process by which parliament considers and approves budget legislation, and the annual budget in particular. The draft budget represents the executive’s statement of priorities and commitments, and can include both revenue and expenditure proposals, although this is not the case in all parliaments.
The process of parliamentary consideration of the budget commences with the formulation of the budget and its presentation to parliament. The budget is then examined and deliberated by parliament, and may be amended during this process. The final step is the approval of the budget by parliament.
In many jurisdictions, parliament plays a substantial role in formulating the budget. This enables parliament to influence the content of the budget. Parliamentary involvement in this stage can also facilitate the later passage of the budget through parliament.
To help parliament properly consider the budget, it should be accompanied by detailed information, including about the proposals its contains, the budget’s effect on different groups in society – such as women, youth, people with disabilities, and disadvantaged and minority groups – and any short- and long-term trends in the country’s budgetary position. The executive and its agencies are responsible for providing such information.
The budget examination process should give MPs an opportunity to scrutinize and amend the budget before voting to approve it.
Aspiring goal
Assess your parliament against this dimension
Assessment criteria
No 1: Legal framework
The legal framework establishes clear arrangements covering all aspects of parliament’s consideration of budget legislation. Only parliament can give final approval to budget legislation.
No 2: Information about the draft budget
The executive presents the draft budget to parliament along with detailed supporting information about its proposals and its effect on different groups in society.
No 3: Time available for budget consideration
There is sufficient time and opportunity for scrutiny of budget legislation, including by the opposition and/or minority parties.
No 4: Ability to influence the budget
Parliament is substantially involved in the process of formulating the budget. Parliament is able to influence its content and to amend the draft budget. Any limits on the scope of amendments that can be proposed by MPs are reasonable and clearly defined.
No 5: Practice
In practice, the budget is presented to parliament within the time frame defined by law. Budget consideration in committee and in the plenary is substantive and in line with parliament’s rules of procedures. Parliament approves the budget in a way and within a time frame defined by law or its rules of procedure.
How to complete this assessment
This dimension is assessed against several criteria, each of which should be evaluated separately. For each criterion, select one of the six descriptive grades (Non-existent, Rudimentary, Basic, Good, Very good and Excellent) that best reflects the situation in your parliament, and provide details of the evidence on which this assessment is based.
The evidence for assessment of this dimension could include the following:
- Provisions of the constitution, other aspects of the legal framework and/or parliament’s rules of procedure relating to parliament’s consideration and approval of budget legislation
- Information about the involvement of MPs, members of the public, civil society and others in budget formulation
- Statistics on the time spent on budget consideration, and on the involvement of different groups of MPs, such as opposition, minority-party and independent MPs
- Proposed amendments to budget legislation
- Records of budget approval
Where relevant, provide additional comments or examples that support the assessment.
Sources and further reading
- David Beetham, Parliament Parliament A national body of elected (or sometimes appointed) representatives that makes laws, debates issues and holds the government to account. and democracy in the twenty-first century: A guide to good practice (2006).
- Commonwealth Parliamentary Association (CPA), Recommended Benchmarks for Democratic Legislators, revised edition (2018).
- National Democratic Institute (NDI), Towards the Development of International Standards for Democratic Legislatures (2007).
- Organisation for Economic Co-operation and Development (OECD), OECD Best Practices for Budget Budget A plan typically prepared by the executive and placed before parliament each year (depending on national statute) showing what money the government expects to receive (revenue) and how the government proposes to spend it (expenditure). Transparency (2002).
- OECD, Recommendation of the Council on Budgetary Governance (2015).
- OECD, Parliament Parliament A national body of elected (or sometimes appointed) representatives that makes laws, debates issues and holds the government to account. ’s role in budgeting (2019).
- Franklin De Vrieze, Keeping an eye on the money we don’t have. Parliament Parliament A national body of elected (or sometimes appointed) representatives that makes laws, debates issues and holds the government to account. ’s oversight role on public debt (2022)
Get help with this assessment
The assessment of indicators involves diagnosing and considering strengths and weaknesses, i.e. the things parliament is doing well, and the things it could do better or more effectively, taking into account established good practices that are described in the indicators.
Read the assessment guidance to find out what to consider when conducting an assessment against the Indicators. Find out how to prepare, how to set the objectives of the assessment, how to organize the process, and more. Contact the project partners for expert advice.
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