Budget Transparency and Participation at the Local Level (MK0149)

Which public problem is addressed by the commitment? Good governance at local level means improving processes for the purpose of more efficient and cost-effective delivery of public services, by ensuring full transparency and accountability, and by involving citizens in decision-making. In that, due consideration should be made for these processes to guarantee inclusion. Having in mind new trends and documents of the Council of Europe, the European Union and the United Nations, these commitments can be achieved by using innovative and new technologies that facilitate access to information and sensitize citizens. The need to increase transparency and accountability at local level is featured in almost all reports and strategy documents of national institutions, while progress in these aspects, inter alia, is monitored through analyses and surveys conducted annually. Public opinion polls on citizens’ satisfaction with services at local level from the past four years show certain improvement in terms of assessment scores assigned to availability of municipal information (from 3.0 in 2017 to 3.1 in 2020), civil participation in decisions of local importance (from 2.3 in 2017 to 2.6 in 2020), and citizens’ knowledge about the manner in which budget funds are spent in their municipality (from 2.2 in 2017 to 2.4 in 2020). However, in spite of relative progress achieved in this regard, additional efforts are still needed to improve overall transparency and accountability of local governments and to ensure greater involvement of citizens in decision-making at local level. 33 As regards better public finance management, emphasis is put on improving transparency and accountability. The need for greater financial transparency and accountability was addressed during adoption of the Law on Financial Support to Local Self-Government Units and Beneficiary Entities Founded by Local Self-Government Units Intended to Finance Matured and Unsettled Liabilities in October 2018, in order to improve public finance management through greater financial discipline and accountability. In December 2020, the Government adopted a conclusion that mandates line ministries and recommends municipalities to improve active transparency, with emphasis on financial transparency, especially in respect to execution of central budget funds.

Main objective of the commitment Introduce innovative mechanisms and tools to improve financial transparency and accountability of local self-government units and involvement of citizens in decision-making at local level.

How will the commitment contribute to addressing the public problem? Introduction of electronic newsletter boards in municipalities as particularly accessible method for informing municipal council members and citizens in general about key financial data related to municipal performance and public services, including automatic download of quarterly reports on budget execution prepared by municipal administrations and processing data contained in more user-friendly and visible format. Data will be published in a manner that is understandable to council members who are not financial experts and in user-friendly manner for citizens. The goal is to ensure that municipal council members are able to perform their budget control function in more responsible manner and to take decisions based on information and in close cooperation and consultation with citizens, allowed by better information dissemination and understanding of the budget planning and execution process. Municipalities will be supported to create and put into operation innovative tools for easier access to information and to encourage involvement of citizens in decision-making related to local policy creation and services. The third aspect concerns establishment of single mechanism for citizen involvement in decision-making and local priority setting that would ensure adequate representation of all citizens, with emphasis on socially disadvantaged and marginalized groups.

How is the commitment relevant to OGP values? COMMITMENT IS IMPORTANT FOR TRANSPARENCY because it provides access to new and more information, improves quality of information and improves access to public information, i.e. facilitates the right to information. COMMITMENT IS IMPORTANT FOR CIVIC PARTICIPATION because it creates and improves opportunities and conditions for public participation and influence in decision-making and improves the enabling environment for civil society. COMMITMENT IS IMPORTANT FOR PUBLIC ACCOUNTABILITY because it improves mechanisms for public accountability of officials.

Additional information The commitment represents continuation from NAP4 and is aimed at introducing mechanisms and tools for improved financial transparency and accountability and citizen involvement in all municipalities, allowing them greater impact in respect to improved local governance. Under NAP4, these mechanisms and tools were introduced in 24 municipalities. The commitment contributes to attainment of priorities and goals defined under the Government’s Program for Sustainable Local Development and Decentralization 2021-2026 ad UN Sustainable Development Goals, especially SDG16: Promote just, peaceful and inclusive societies for sustainable development, provide access to justice for all and build efficient, accountable and inclusive institutions at all levels, and specifically to SDG target 16.6: Develop efficient, accountable and transparent institutions at all levels, and SDG target 16.7: Ensure responsive, inclusive, participatory and representative decision-making at all levels

No. Milestone Indicators Activity holder Start date End date 1.6.1 Introduce and put into operation electronic newsletter boards in 20 municipalities for automatic publishing of quarterly reports on municipal budget execution with data processed in understandable and user-friendly manner for citizens - Number of municipalities that have put into operation electronic newsletter boards - Citizens’ satisfaction with information dissemination on municipal budget spending (average score of 2.4 in 2020) MLSG UNDP January 2022 December 2023 1.6.2 Create and establish innovative tools for easier access to information and encourage citizens involvement in 20 municipalities Number of established innovative tools (minimum 20 tools in 20 municipalities) MLSG UNDP January 2022 December 2023 1.6.3 Establish civil participation mechanism for decision-making and local priority setting through adequate representation, with emphasis on vulnerable and - Number of municipalities with established mechanisms for civil participation - Number of consultations organized with adequate representation of citizens (at least 80) MLSG UNDP January 2022 December 2023 35 marginalized groups, in 20 municipalities - Number of projects accepted and implemented by local authorities on proposal by citizens through participation mechanisms (at least 20) Continuation of NAP4 commitment

Action Plan Review

Commitment 1.6: Fiscal transparency and accountability at local levels and improved involvement of citizens through innovative mechanisms and tools

● Verifiable: Yes

● Does it have an open government lens? Yes

● Potential for results: Modest