An interactive exercise on comparing city budget with good practices

Md. Zahurul Islam,

Email: zahir.ucep@yahoo.com

The interactive budget exercise through which municipality invites residence to share
their thought on how they would like to see their tax money invested in community
services. The ultimate goals are to acquire feedback from residence on their priorities
for municipal services. Citys mayor discusses the municipal budget with city residence
during a public pre-budget session undertakes each year. The public is given a list of
questions or themes for discussion. The sessions examine participants views on
budget issues by leading them through structured discussion and dialogue about policy
options. In Bangladesh, local governments budget formulation was monopolized by the
officials and budget drafting process did not involve public participation or consultation.
In some places officials treat budget documents and other information as confidential
documents often. Very little budget information is made available during the budget
drafting phase, even to members of council. Currently, integrating citizens in the budget
process is becoming more common practices in local governments.
A best budget practice is defined as a procedure that assists in accomplishing a
principle and element of the budget process. The following are the key 5 key features
that can be best practices to improve the city budgeting processes. They are:
1. Incorporating Stakeholder Input. Incorporating citizen preferences into its budget
can be a difficult task for city government. It establishes broad goals to provide
overall direction to the resource allocation and budgetary decision-making
process. Goals are developed through a proactive process that assesses the
needs, concerns and priorities of the community..

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2. Identifying program challenges. Developing effective strategies to address

program challenges requires continuous monitoring of service delivery inputs and
outcomes. This process is systematic and follows logically from program goals
and the assessment of work processes undertaken to achieve intended
outcomes.
3. Budget development process. The process helps the local government to
develop appropriate strategies to address anticipated changes in financial
condition. Long-term financial planning is a strategic process that provides
governments with the insights and information they need to establish sound
financial and operations policies and pursue actions that maintain good fiscal
health.
4. Performance measurement and evaluation. Performance measures follow
logically from the predefined program goals and objectives. It is important that
the impact that these decisions may have on future years' budgets be presented,
evaluated and considered before final action is taken. Long term plans
concerning revenue, appropriations, tax levy, tax levy cap and surplus are critical
toward sustaining (or achieving) a solid fiscal condition.
5. Present budget information effectively. Budget data and information are
presented in a manner that facilities policy analysis and reported on a gross
basis, clearly delineating revenue, expenditures and financing. Separate
documentation should clearly show the major assumptions underlying the budget
estimates, fiscal policy objectives and the major risks associated with the budget.
Budget interactive exercise involves a two-way exchange of information between the
local governments and citizens. Government defines the issue and solicits feedback
from the public. It helps citizens build confidence on the legitimacy of public institutions.
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