LEVERAGING THE WORK OF INDEPENDENT FISCAL INSTITUTIONS

FOR LEGISLATIVE SCRUTINY

Rolf AlterDirector, Public Governance and Territorial Development

OECD

Paris 5th OECD Parliamentary Days

8 February 2017

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1. Have IFIs impacted the quality or nature of parliamentary debate on fiscal policy in your country in recent years?- Specific examples

2. How are parliamentarians using the work of IFIs?

3. Are parliamentarians looking for technical expertise, and / or professional judgement on sensitive fiscal policy issues?

4. What other tools are parliamentarians using to meet the new demands of budget oversight?

5. How can links between IFIs and parliaments be strengthened?

Questions for discussion

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Growth of Independent fiscal institutions

1930s 1940s 1950s 1960s 1970s 1990s1980s 2010s2000sBelgium Netherlands Denmark Austria

USMexico Korea

SwedenCanadaHungarySlovenia

GreeceUKAustraliaIrelandPortugalSlovak Rep.ChileFinlandFranceGermanyLatviaSpainEstoniaItalyLuxembourgIceland

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“Heterogeneous but similar”

IFIs are a heterogeneous group

– there is no one size

fits all model…

… but despite their diversity, they tend to have certain core

functions.

Extracts from the OECD IFI database:

Institutional model

Functions

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Relationship with the legislature

Measure % of OECD IFIs

Key IFI reports sent to the legislature 94%

IFI leadership participates in parliamentary hearings 94%

IFI supports the parliament in budget analysis 39%

Source: OECD IFI Database 2017

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OECD Network of Parliamentary Budget Officials and Independent Fiscal Institutions (PBO)

• debate substantive budgeting issues

• share practical experiences on working methods

• identify international best practices

• improve the practical application of the OECD Principles for IFIs

Draws together senior officials working in IFIs to:

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OECD Principles for IFIs

Local ownership

Role and structure determined according to local needs

Independence and non-

partisanship

Independent appointments and non-partisan analysis

Mandate

Mandate clearly defined and IFI able to work at own initiative

Resources

Resources commensurate with mandate

Transparency

Act as transparently as possible

Relationship with legislature

Appropriate accountability to the legislature

Access to information

Access to information guaranteed in legislation

Communic-ation

Effective communication channels, especially with media

External evaluation

A mechanism for external evaluation in place

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1. Have IFIs impacted the quality or nature of parliamentary debate on fiscal policy in your country in recent years?- Specific examples

2. How are parliamentarians using the work of IFIs?

3. Are parliamentarians looking for technical expertise, and / or professional judgement on sensitive fiscal policy issues?

4. What other tools are parliamentarians using to meet the new demands of budget oversight?

5. How can links between IFIs and parliaments be strengthened?

Questions for discussion

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OECD IFI DATABASE LINK:HTTPS://WWW.COMPAREYOURCOUNTRY.ORG/INDEPENDENT-FISCAL-INSTITUTIONS

THANK YOU