The budget process is one of the critical instruments that Parliament uses to conduct oversight over the executive. This oversight role protects the public purse. According to the Parliamentary Budget Office (PBO), the budget system should be regarded as the most important component of service delivery.
The budget is the instrument for translating policies and plans into public goods and services. Any policy or plan without a budget attached to it is unlikely to be successfully implemented. Economic success depends on the ability of government to employ limited resources with maximum effect.
The role of Parliament in this regard cannot be overstated. Parliament’s duty is to detect and prevent abuse, prevent illegal and unconstitutional budgetary conduct on the part of the government, make government budgetary operations more transparent and hold the government answerable on how taxpayers’ money is spent.
Parliament’s specific oversight role in the first stage of planning is to ensure that all plans are in line with the National Development Plan (NDP), which is implemented through the Medium-Term Strategic Framework (MTSF).
Parliament can monitor and evaluate the quality of plans and examine if their outputs are relevant for Parliament’s oversight. Parliament can also use the Auditor-General’s report to see how NDP recommendations are integrated into government plans.
The parliamentary work in the budget process really begins with the adoption of the Budget Review and Recommendation Reports (BRRRs) and the Medium-Term Budget Policy Statement (MTBPS). In this stage, Parliament analyses and assesses the macro-economic forecast, the fiscal framework, policy priorities and revenue, and expenditure trends and estimates. It does this by scrutinising individual government department budgets to detect historic trends on efficiency, effectiveness, responsiveness to need and alignment of policy and plans with the NDP.
During the legislative phase of the budget, the National Assembly, the National Council of Provinces and provincial legislatures debate budget votes with the involvement of interest groups and civil society, the media and the general public. This is to ensure that they reflect national priorities, and accommodate outcomes and actions required by the MTSF.
To ensure efficient and effective implementation of the budget, all government institutions submit in-year executive reports on expenditure and performance to the legislatures. Parliament’s committees oversee the in-year and year-end monitoring processes. This includes site visits and public hearings. Rigorous in-year parliamentary monitoring has the potential to minimise poor performance by the executive at year-end.
In the final audit stage of the budget process, annual reports including annual financial statements and performance information are submitted to the Auditor-General for auditing. Parliament can make use of reports produced by the National Treasury and the Auditor-General to hold the executive to account on their performance and finances.
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