Civil Society Team for Enhancing Public Budget Transparency holds its annual conference on Accountability for Public Financial Management in the Gaza Strip
Poor transparency and disclosure of public financial management in Gaza undermines public confidence in officials and engagement in spending priorities
Gaza – The Civil Society Team for Enhancing Public Budget Transparency (“Team”) in the Gaza Strip held its specialised conference on Accountability for Public Financial Management in the Gaza Strip. The event was organised against the backdrop of significant challenges in view of a continuing poor commitment to the principles of transparency in public financial management (PFM) by public administration bodies across the Gaza Strip. This has clearly reflected on citizens’ priorities, objects of public spending, compliance with the law, and public confidence in the performance of PFM and public administration agencies.
In two sessions, two papers were presented in the conference. The first presentation stressed the importance of allowing public access to PFM reports, civil society engagement in fiscal planning and budgeting processes so that these are developed according to community needs. The other paper had its focus on diagnosing the environment of PFM integrity, transparency, and accountability within local government units (LGUs) throughout the Gaza Strip. Recommendations were made to define, and ensure impartial and transparent management of, major objects of expenditure in line with public priorities.
The Team is not a substitute for the Palestinian Legislative Council, but complements and promote a participatory approach
In his opening statement, Dr. Kamal al-Sharafi, Deputy Chair of the Coalition for Accountability and Integrity (AMAN) Board of Directors, provided a review of the challenges facing the Team members and civil society organisations (CSOs) in the Gaza Strip. Amid declining systems and mechanisms for PFM transparency and accountability in the Gaza Strip, these groups are further crippled by a policy of non-publication and information blackout. CSOs are not involved in setting priorities when fiscal plans and public budget are produced.
Al-Sharafi highlighted the importance of promoting the principles of community engagement and accountability, as well as citizens’ right to access and take part in government policy making processes. To achieve public priorities, Al-Sharafi called on the Palestinian Legislative Council (PLC), Change and Reform Bloc, Committee for Follow-up on Government Functions, and public institutions to step up efforts to apply a participatory approach, be more open to CSOs and the Team, and engage media outlets in PFM operations. Regretting that decision makers of the Ministry of Finance (MoF) did not participate in the conference, Al-Sharafi wondered if public institutions were serious about, or believed in, the principle and right of community engagement.
Al-Sharafi confirmed that the Team was not a substitute for the inactive PLC in public oversight and accountability. However, the Team plays a pivotal role in laying the foundations for democracy, consolidating a participatory approach, and advancing complementary action.
Need to put an end to the restrained approach and monopoly over public decision making
In the conference first session, Marwa Abu Odeh, Advocacy and Accountability Coordinator at AMAN, made a presentation on “The Civil Society Team’s Position towards Declining Transparency and Participation in the Public Budget Management in the Gaza Strip.” Abu Odeh mainly reviewed the current context of PFM and public budget processes in Gaza. The Team deplores the restrained approach and monopoly over the public decision making process, which reflects a flagrant contradiction in the persistent media discourse of the Committee for Follow-up on Government Functions. Clearly, these practices run counter to the MoF commitments and pledges to engage the Team in budget preparation and debate. They are also at odds with the Committee Chair, who vowed in recurrent speeches to apply a participatory approach and maintain openness to civil society.
The MoF has not published any of the eight documents to fulfil principles of budget transparency
The paper stressed that competent bodies need to activate their role and effectively hold to account the executive agencies for PFM and budget execution. Accountability will take place in public sessions. The 2022 Public Budget Law will be published in full, including details of allocations to responsibility centres, economic indicators, and bases for the financial estimates of revenues and expenditures. Reference will also be made to international standards on transparent public budgets, including timely publication of public budget documents, citizens budgets, periodic and quarterly reports, and final accounts. It should be noted that none of the eight main documents has been made publicly available.
Need to engage civil society in public policy making and budget prioritisation
The paper demanded that the Committee for Follow-up on Government Functions be open to civil society at large, and to the Team in particular. The Committee will respond to the Team’s demands and engage it in the public policy making process and public budget prioritisation, including the setting of expenditure priorities, collection policies, and financing sources. PFM officials need to take part in the accountability sessions held by relevant CSOs or those with interest in PFM and public administration. As provided for under the Palestinian law, the Committee for Follow-up on Government Functions and MoF should be committed to publishing periodic reports on time. Detailed objects of public spending, goals, and programmes, based on which expenditure is approved and distributed, will be open to public access. Plans and programmes for improving public spending will be made clear, guaranteeing rights of both citizens and civil servants.
In addition, the Committee for Follow-up on Government Functions and MoF will give priority to increasing and executing development expenses of sectors that work towards enhancing citizens’ lives, including health and education. Current expenses of the social sector will be raised, namely, health, education, and social development. Expenditure will be earmarked for the social protection sector, including protection of the poor and persons affected by the COVID-19 pandemic and recurrent aggressions against the Gaza Strip.
Multiple comments
Dr. Mohammed Miqdad, Chair of the Union of Economists, emphasised the significance of a transparent budget, which should be published in tandem with international publication standards. As a Palestinian popular demand, the national reconciliation effort should see the light of day. All parties have to work towards bringing reconciliation into reality. A consolidated Palestinian budget will be prepared with a view to bridging the gap between the West Bank and Gaza Strip, alleviating poverty and unemployment, and reconstructing Gaza. While the principles of transparency and integrity are maintained, relevant associations, unions, and CSOs, particularly the Team, will take part in developing and publishing fiscal plans within a clear time frame. This serves the national interest and makes everyone feel that they are partners in responsibility. Miqdad also recommended that room be allowed to activate community accountability for PFM by engaging the Team in the review and development of fiscal plans and policies. In addition to training courses targeting budget teams, AMAN will raise awareness about and publish the rules of transparency.
Mr. Munther al-Saqqa, MoF Director General of the Internal Audit Department, commented that the Gaza-based MoF deployed financial controllers to all line ministries and government bodies. These make sure that public spending and revenue collection are handled in accordance with the Law No. 7 of 1998 on Regulation of the Public Budget and Financial Affairs and Palestinian Financial Regulation No. 43 of 2005, both approved by the Palestinian Authority and in force in the Gaza Strip.
MoF pledge to share the budget circular with the Team
Al-Saqqa vowed to share the budget circulate with the Team. The latter had already sent a letter to the MoF, demanding that it have access to the budget circular. As a public budget document, the budget circular should be made accessible to the public. The Team indicated that the budget circular had not been posted on websites of the MoF and government bodies. Contrary to the provisions of the law and given that no budget documents were published, the Team further called for making clear the mechanisms for the public budget preparation, execution, approval, and control. Meanwhile meetings were held with planning and budgeting committees at government bodies to discuss relevant budget line items and set budget envelopes of responsibility centres. These should have been compiled in line with the policies, plans, and envelopes already determined in the budget circular.
Need to adopt a fiscal policy for preparing and publishing a readable budget to increase public engagement
In the second session of the conference, researcher Abul Mun’em al-Tahrawi presented his paper on “Municipalities’ Commitment to Readable Budget Indicators in the Gaza Strip.” The research paper analysed the extent to which all 25 municipalities of Gaza were committed to preparing and publishing a readable budget in line with relevant indicators. The paper aimed at identifying gaps and providing practical recommendations to adopt a fiscal policy for creating and making publicly available a readable budget. This will serve as a mechanism to engage citizens in setting spending priorities and controlling LGU commitment to readable budgets.
Data dissemination contributes to increasing community engagement in the budgeting process and receiving proposals on spending priorities from citizens
The paper recommended that readable budget preparation and publication need to be institutionalised by a decision to this effect. This will oblige municipalities to prepare, make publicly available, and set a timetable for preparing and publishing readable budgets. A time frame of a maximum of one month from the beginning of the year will be scheduled for approval of the public budget. Accordingly, municipalities will have an opportunity to prepare and publish readable budgets within the first quarter of the year. In the meantime, community engagement in the readable budgeting process can be initiated in line with the budget proposal until such time the Gaza-based Ministry of Local Government (MoLG) approves the budget.
Capacity building will be provided to relevant financial departments to prepare, design, and publish readable budgets in consistence with the new requirements for accrual-based budgeting approved by the MoLG and Municipal Development and Lending Fund (MDLF). Budget publication tools will be diversified within available resources so as to ensure increasing access for an even wider audience. The complaint handling system or municipal service centres will provide a link for complaints and suggestions.
The paper came up with a set of recommendations. First and foremost, community engagement will be bolstered throughout phases of the budgeting process. To this avail, an integrated system of engagement and financial accountability will be developed, starting with participatory budgeting, continuing through readable budgeting, and ending with expenditure tracking. Capacity building will be provided to community and accountability committees to in order to enhance budgeting and engagement skills. Participation of various stakeholders will be increased, ensuring it is not confined to neighbourhood and accountability committees. Particularly involving women, persons with disabilities and residents of marginalised areas, community engagement will be broadened in the readable budgeting process. Enhanced coordination of community engagement and accountability will be in place with active CSOs for joint action in the area of community sensitisation. Tools will be developed to monitor and evaluate community engagement in readable budgets. The experience of other municipalities in the establishment of community accountability committees will be put to use. The MoLG role in the oversight of compliance with readable budget preparation and publication will be invigorated and connected to municipal budget control.
In the footsteps of AMAN’s manuals, the MoLG rolls out best practices to municipalities
In her comment, Ms. Muna Skeik, MoLG Director General of Institutional Planning and Development, commended the participatory approach premised on the guidance and procedure manuals of AMAN, stressing that this exercise would be rolled out to municipalities as best practice. According to Skeik, the MoLG developed a set of regulations on neighbourhood committees and youth councils. The Ministry also compiled a manual for LGU assessment to facilitate control over LGUs. In addition to adopting recommendations of the integrity system, the MoLG established complaint units and provided capacity building to different LGU staff to serve citizens.
Disclosure builds up public confidence in municipalities and promotes good citizenship
Dr. Yihya al-Sarraj, Gaza Mayor, stressed the need for disclosure by various government bodies with a view to strengthening national security, promoting good citizenship, and improving a participatory relationship and confidence between municipalities and respective communities. Rather than perceiving them as collection agencies, the mental image of municipalities will be enhanced. To ensure public engagement, citizens need to understand challenges to share burdens with municipalities. Accordingly, citizens will contribute to devising solutions and have access to financial data, including municipal revenues. While contributing to spending prioritisation, an opportunity will be furnished to influence and improve LGU performance. Al-Sarraj cited the example of the Gaza Municipality, which managed to increase the number of committed beneficiaries from the municipality services from 9 percent in 2019 to 25 percent in 2022. Al-Sarraj stated that the municipality aspired for bringing this percentage up.
Al-Sarraj indicated that the Gaza Municipality had made a decision to approve a policy for publishing various municipal data, considerably benefiting several companies to develop service provision. To deliver the best services to citizens, Al-Sarraj stressed the need to provide capacity building to and invest in municipal staff.
