Expenditure Visibility

Identify areas where a government entity or organization may be overspending or where they can cut costs, thereby improving their overall financial health and optimizing their resources.

Participatory budgeting (PB) is a democratic process where citizens get to decide how to spend part of the public budget. The process typically involves the following steps: 

Budget Preparation: This is the first phase of the budgeting process, and it involves gathering information about the government's financial needs and resources. The government will need to assess its revenues, expenses, and cash flow. It will also need to identify its goals and objectives for the upcoming budget cycle. 

Budget Authorization: Once the budget has been prepared, it is presented to the members of parliament for discussion and approval before it goes into action. This typically involves a full review and approval process by the Cabinet or other governing body. 

Budget Execution: This is the phase of the budgeting process where the budget is put into action. The government will need to allocate funds to its various ministries and agencies, and it will need to track its spending to ensure that it stays within budget. 

Budget Monitoring and Budget Performance Evaluation: This is the final phase of the budgeting process, and it involves monitoring the government's spending and evaluating the effectiveness of the budget. The government will need to identify any areas where the budget is not working as planned, and it will need to adjust as needed. 

Budget cycle

  • Budget Preparation: The Ministry of Finance and National Economy (MOFNE) begins the budget preparation process in the fall by gathering information about the government's financial needs and resources. The MOFNE will assess the government's revenues, expenses, and cash flow. It will also need to identify the government's goals and objectives for the upcoming budget period. 
  • Budget Consultation: Once the MOFNE has a preliminary budget proposal, it will consult with the various ministries and agencies to get their input. 
  • Budget Approval: The Cabinet will review and approve the budget proposal. The Cabinet may make any necessary adjustments to the budget. The budget proposal is discussed with the national parliament members for approval before it acts.  
  • Budget Execution: The MOFNE will allocate funds to the various ministries and agencies. The ministries and agencies will then begin to spend the funds according to the budget. 
  • Budget Monitoring and Budget Performance Evaluation: The MOFNE will monitor and administer the government's spending throughout the year. The MOFNE will also evaluate the effectiveness of the budget. Any necessary adjustments to the budget will be made in the fall when the next budget cycle begins.  

The possible process where all government entities in Bahrain will provide the budget requirements: 

  • The MOFNE will issue a call for budget proposals from all government entities. 
  • The government entities will submit their budget proposals to the MOFNE
  • The MOFNE will review the budget proposals and make recommendations to the Cabinet.  
  • The Cabinet will approve the budget and allocate funds to the government entities after parliamentary approval is obtained. 
  • The government entities will use the funds to implement their projects. 

This process can be made more participatory by involving citizens in the early stages, such as the public consultation and prioritization phases. This has to be done by holding meetings, conducting online surveys, or using other methods to gather input from citizens. By giving citizens a voice in how their money is spent, participatory budgeting can help to build trust between citizens and the government. 

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Content Last Updated: 23 Aug, 2023

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