Part III Assessing resources 9.4. REVIEWING THE BUDGET CYCLE It is important to remember that budgeting is an economic, administrative, political and human rights process. A budget is not simply one document; it is an iterative cycle. At best, it is a process that fosters active civic engagement. At worst, it is too confusing and opaque for the public to participate in. NHRIs can therefore play an important role by explaining and demystifying the budget process, to make it more accessible to civil society and other stakeholders. Most modern budget cycles consist of a year-long process with different phases that offer a range of actors, including civil society, opportunities to influence how public resources are raised and spent, as well as the policy priorities outcomes. Key budget documents: Executive’s budget proposal; Supporting budget reports formulation: 1 Budget The executive formulates the draft budget. oversight: 4 Budget The budget accounts are audited and audit findings are reviewed by the legislature, which requires action to be taken by the executive to correct audit findings. Key budget documents: Audit reports; Legislative Audit Committee reports Key budget documents: Budget law; Reports of legislative budget committees approval: 2 Budget The legislature reviews and amends the budget – and then enacts it into law. execution: 3 Budget The executive collects revenue and spends money as per the allocations made in the budget law. Key budget documents: In-year reports; Mid-year report; Year-end reports; Supplementary budgets Source: International Budget Partnership (2008), Our Money, Our Responsibility: A Citizens’ Guide to Monitoring Government Expenditures When reviewing the budget process, ask whether the budget process is: • Transparent? The public should have access to easy-to-understand information about the budget making process. • Accountable? The budget should be accountable to the people with regard to its process, revenue, spending and impact. • Participatory? People and civil society organizations from all different population groups should have the opportunity to be involved in the budget process, and have their expressed desires and needs taken into account. These principles should apply at all stages of the budget process; from its drafting, which should be linked to national development plans prepared following broad consultation, through to its approval by the parliament, which must have proper amendment powers and time for a thorough evaluation of proposals, implementation and monitoring. Chapter 9: Evaluating resources | 101