One of the key questions ordinary citizens ask about government budgets is “how will it affect me?” This is a particularly important question for people who live in poverty or are part of disadvantaged and marginalised groups.
For them, how much tax they pay or what public services they receive can make the difference between deprivation and well-being. This is even more relevant during times of crisis like the COVID-19 pandemic, when poverty and inequality worsen and governments are called on to provide assistance to those most in need.
The World Bank estimates that the COVID-19 pandemic is likely to push between 71 and 100 million people into extreme poverty by the end of 2020. Other estimates put the global tally at around half a billion people and the likelihood of reversing recent gains in reducing global poverty all but certain.
Inequality was already on the rise before COVID-19, and the pandemic will likely make the gap bigger, in rich and poor countries alike. The virus magnifies pre-existing differences in economic and social conditions by disproportionately disrupting the livelihoods of those at the lower end of the income scale who cannot self-isolate, have less job security and are more exposed to possible contagion.
Therefore, it is critical to understand how governments are providing the public with adequate information about the impact of budget policies on poverty and inequality to tackle these social ills.
Published Information
We started looking at this issue in a brief published in early 2019, which used data from the 2017 Open Budget Survey (OBS) to show that most governments publish very limited information on these topics. The information that is made available, our research showed, is often scattered and incomplete, and reporting back on the implementation of relevant budget policies is weaker still.
Unfortunately, the results of the 2019 OBS show little improvement, if any.
For people and organisations interested in knowing what policies governments are putting in place to reduce poverty, the annual budget proposal prepared by the executive is the first place to look.
