Socially responsive budgeting

This page provides an introduction to the topic of socially-responsive budgeting, and is part of the topic guide on Public Financial Management and Accountability.

Page contents

Definition of topic and content

Where is a good place to start?

Participatory budgeting

What other resources are available on the GRC Exchange?

Definition of topic and content

In many countries, budgeting has traditionally been a technocratic exercise, in which decision making is isolated from political debate and public scrutiny. However, there are strong arguments for encouraging greater public participation in the budget process. Public input increases the information available to decision makers about social problems and the best strategies for addressing them. Public participation may also increase the responsiveness of the state to its citizens, as the latter become more informed of their rights and develop clearer expectations of state provision. For these reasons, participation in the budget process is considered an entry point for building both greater financial and political accountability.

Where is a good place to start?

Norton, A. and Elson, D. , 2002, 'What's Behind the Budget? Politics, Rights and Accountability in the Budget Process', Overseas Development Institute, London.
This paper contributes to evolving a wider understanding of PEM and is part of a programme of work to progress DFID's human rights strategy. It looks at the ways in which a rights-based approach can advance pro-poor and gender-equitable outcomes in the budget process and support citizen accountability. It identifies partners, tools and methods that may help achieve these goals.
Comment: Examination of the political conditions which are conducive to poverty reduction.
Full document available online

Participatory budgeting

Participatory budgeting has received much interest as a result of its success in several municipalities in Brazil. Its proponents argue that by reshaping both the substantive content of public budgets and the process of budget policy-making, participatory budgeting can have far-reaching effects on development. However, the scalability and sustainability of these measures still has to be fully tested.

Singh J. and Shah P. 2003, Making Services Work for Poor People -The Role of Participatory Public Expenditure Management (PPEM), Social Development Notes No. 81, World Bank, Washington D.C.
How can services be made to work for poor people? What reforms are needed? This note from the World Bank puts forward the case for participatory public expenditure management (PPEM) to improve service delivery in developing countries.
Comment: Succinct summary of Participatory Public Expenditure Management prepared as a contribution to the World Development Report 2004.
Full document available online

Heimans, J. 2002, Strengthening Participation in Public Expenditure Management, OECD Policy Briefing no. 22.
This policy briefing is based on a review of the existing literature as well as interviews with a range of experts, including members of civil society, government officials, and specialists in multilateral agencies, who have had experiences with different aspects of participatory budgeting. The brief argues that participatory budgeting matters because it promises to improve social and economic outcomes while increasing confidence in public institutions.
Full document available online

De Souza, C. 2001, Participatory Budgeting in Brazilian Cities: Limits and Possibilities in Building Democratic Institutions, IDD Working Paper No. 28, International Development Department, University of Birmingham, Birmingham.
Brazil has embarked on the task of strengthening its democratic institutions. It is experimenting with participatory budgeting (PB) at the local level. How successful has this been? This research from the University of Birmingham examines the claims made for PB experiments in the cities of Porto Alegre and Belo Horizonte and concludes that they should be valued more for heightening citizenship than for the material gains they may bring.
Full document available online

Gender budgeting

There is increasing recognition that budgets offer the potential to transform inequalities. Gender sensitive budgets have been recognised as a tool for advancing gender equality. The success of gender responsive budgeting demonstrates the potential of participatory budgeting and analysis to make governments accountable to their commitments on gender equality, and to bring a fairer distribution of public resources.

Budlender, D. et al, 2002, 'Gender Budgets Make Cents: Understanding Gender Responsive Budgets', Commonwealth Secretariat, London.
How can greater consistency between social commitments and economic goals be achieved? This publication aims to inspire government officials, policy-makers, donor agencies, and civil society groups to engage in gender-responsive budget initiatives by demonstrating both equity and efficiency gains.
Full document available online

Bakker, I., 2002, 'Fiscal Policy, Accountability and Voice: The Example of Gender Responsive Budget Initiatives', UNDP, New York.
Participatory budgeting and analysis offer a new method of holding governments accountable to their commitments. They can also lead to a more balanced distribution of public resources. This background paper for the United Nations Human Development Report considers the relationship between fiscal policy and accountability, and analyses the development of gender-responsive budget initiatives.
Full document available online

Hofbauer, H., 2003, 'Case Study: Gender Analysis in Policy Planning and Budgeting' from training session on 'Gender Analysis in Policy Planning and Budgetary Processes', World Bank, Washington DC.
A case study used in World Bank training sessions describes the experience of non-governmental organisations (NGOs) working on engendering budgetary policy in Mexico. It gives a brief roundup of recent Mexican political history and introduces the two NGOs studied.
Full document available online

What other resources are available on the GRC Exchange?

Organisations

International Budget Project
The International Budget Project exists to assist civil society organisations around the world to improve budget policies and decision-making processes in their countries.
Full summary of International Budget Project: available through Organisation Database

Additional information resources

UNIFEM Gender Responsive Budgets

Use the site search at the top of this page, or within the left navigation if you wish to look for wider resources on socially reponsible budgeting.

Top of page