SA makes top 3 for its transparent budget system

Cape Town – South Africa has ranked in the top three for the transparency of its budget system, according to a global survey.

The International Budget Partnership’s Open Budget Survey 2015, which measures countries according to their budget transparency, ranked SA third out of 109 countries, just behind New Zealand and Sweden.

SA’s score dropped to 86 out of 100 having been as high as 90 in 2012 when it ranked second behind New Zealand.

The survey measures the degree to which governments make key documents available to the public in a timely manner and the degree of usefulness of the data.

According to Overberg Asset Management, the ranking confirms that, despite investor concerns, some of SA’s institutions remain world-class.

According to National Treasury previous survey results have been used to address gaps in budget transparency.

Between 2010 and 2015 Treasury implemented several 'measures and mechanisms', it said in a statement.

"Among others ... a framework for annual performance plans ...enhanced transparency in bidding for government contracts ... and engagement with civil society organisations to ensure increased participation in the budget process," it said.

The study was based on three “pillars of accountability” namely “budget transparency, citizen participation, and independent oversight institutions in the budgeting process”.

South Africa was one of only four countries which “provide sufficient budget transparency, establish sufficient opportunities for public participation, and have strong legislatures and supreme audit institutions”.

The other three countries are Brazil, Norway, and the United States.

Countries that were insufficient on criteria for accountability and have consistently provided scant or no budget information at all included China, Algeria, Iraq, Quatar, and Saudi Arabia.