Back from the Sidelines?

Following a period of decline in influence, it appears that many legislatures are starting to reclaim a more active role in the budget process. Democratization and constitutional reform , in particular, provide opportunities for legislatures to redefine their contribution to public budgeting. Effective legislative participation provides essential checks and balances , enhances openness, facilitates public debate, and provides a platform for broadly based input that can help to deepen consensus about budget choices. While some legislatures exert significant influence and affect budget outcomes at various levels, others remain passive rubberstamps. A range of variables combine to determine such differences between countries, including constitutional structure, the design of budget amendment powers, party political dynamics and the technical capacity of legislatures to engage with budgets. The challenge is now to establish supportive institutional mechanisms that can help to reconcile legislative activism with fiscal prudence, and to tailor these mechanisms to different national circumstances. The World Bank enjoys copyright under protocol 2 of the Universal Copyright Convention. This material may nonetheless be copied for research, educational or scholarly purposes only in the member countries of The World Bank. Material in this series is subject to revision. The findings, interpretations, and conclusions expressed in this document are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or the members of its Board of Executive Directors or the countries they represent.