During recent years there has been a growing scepticism about the role, contribution and effectiveness of the legislature in place to manage public money. The author attributes this in part to the fact that the public is on the whole ignorant, and in part to the fact that electronic media emphasises the failures, rather than successes, of government. This chapter, in Control of Public Money, focuses on the implications of legislative control from a financial perspective, rather than taking account of the social anthropology aspects. It describes the evolution of legislature, from a UK and US viewpoint, and provides a summary table of Strategic and Transactional Controls and Legislative Budgetary Procedures for 19 OECD countries. The chapter concludes with a number of suggestions relating to both parliamentary and congressional systems of government.
Each legislator is faced with the tension of working for oneself and for the good of the nation and as such is guided by economic and political rationality. The legislative procedures that have evolved over the years have tried to reconcile these two and enhance the credibility of the legislative institutions. However, experience shows that:
- A policy deficit, together with a vigilance deficit, have contributed over the years to the fiscal machinery not being successful in addressing the concerns of the public
- Despite attempts to improve the machinery, institutional recidivism has become common
- This was partly due to the fact that reforms did not fully address the major concerns, and partly because they were not fully implemented
- The solutions of one era become the problems of another
- Measures sought to be implemented within the executive wing of governments were not always matched by corresponding efforts in external agencies
- There is a continuing need for a balanced approach towards improvement in the operations of the executive, audit and the legislature, which is the task of future managers.
The decline in legislative control has not been due to the absence of either power or instruments in most cases, but to a deterioration in their use and lack of tangible evidence to the public on the value added by the legislature. The author outlines suggestions for improvement which cover both the parliamentary and congressional types of legislature:
- Suggestions for improving parliamentary performance involve a greater use of its existing powers and strengthening its committee system. To improve credibility there must be a debate on important policy issues, the parliamentary system must be strengthened and the legislative process should be preceded by a structured process of debate both in the House and outside to ensure that consultation processes are complete
- Suggestions aimed at strengthening the Congressional system and reinforcing executive power include the introduction of bi-ennial budgeting, minimising Congressional restrictions, and introducing caps or ceilings on entitlement payments.
