Question 103

Is there an Independent Fiscal Institution (IFI) that conducts budget analyses for the budget formulation and/or approval process?
 * a. Yes, there is an IFI, its independence is set in law, and it has sufficient staffing and resources, including funding, to carry out its tasks.
 * b. Yes, there is an IFI, but either its independence is not set in law or its staffing and resources, including funding, are insufficient to carry out its tasks.
 * c. Yes, there is an IFI, but its independence is not set in law and its staffing and resources, including funding, are insufficient to carry out its tasks.
 * d. No, there is no IFI.
 * e. Not applicable/other (please comment).

OBS Guidelines
Question 103 examines whether an Independent Fiscal Institution (IFI) exists that contributes budget analyses to the budget formulation and/or approval process. According to the Principles for Independent Fiscal Institutions, adopted by the OECD Council in 2014, “independent fiscal institutions are publicly funded, independent bodies under the statutory authority of the executive or the legislature which provide non-partisan oversight and analysis of, and in some cases advice on, fiscal policy and performance”, and with “a forward-looking ex ante diagnostic task”. In practice, they come in two main forms:


 * Parliamentary budget offices (also known as PBOs) such as the Congressional Budget Office in the United States, the Parliamentary Budget Office in South Africa, and the Center for Public Finance Studies in Mexico (Centro de Estudios de las Finanzas Públicas); or
 * Fiscal councils such as the Office for Budget Responsibility in the United Kingdom and the High Council for Public Finances in France (Haut Conseil des finances publiques).

For more information, see von Trapp et al. ‘Principles for Independent Fiscal Institutions and Case Studies’, OECD Journal on Budgeting 15:2 (special issue, 2016).

To answer “a,” there must be an IFI, and its independence must be set in law. In addition, it must have sufficient staffing and resources, including funding, to carry out its tasks. Answer “b” applies if an IFI exists, but either its independence is not set in law or its staffing and resources are insufficient to carry out its tasks. Answer “c” applies if an IFI exists, but its independence is not set in law and it lacks sufficient staffing and resources. Answer “d” applies if no IFI exists.

If the answer is “a,” “b,” or “c,” please specify in the comments the name and type of IFI that exists (e.g., parliamentary budget office or fiscal council). If the answer is “a” or “b,” identify the law that guarantees its independence, and provide evidence in support of the assessment of the adequacy of its staffing and resources. This can include the IFI’s total budget allocation over recent years, any press reports that discuss perceived funding shortfalls, assessments by international organizations, and/or information from interviews with staff of the IFI.

External references

 * Congressional Budget Office in the United States
 * Parliamentary Budget Office in South Africa
 * Centro de Estudios de las Finanzas Públicas
 * Office for Budget Responsibility in the United Kingdom
 * Finanspolitiska Rådet
 * Haut Conseil des finances publiques