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Title page 1

Contents 7

Preface 4

Foreword 5

Acknowledgements 6

Executive summary 10

1. Overview: The need to empower public understanding of the budget 12

1.1. Public understanding and ownership as imperatives for restoring public finances and trust 13

1.2. The changing drivers of trust 13

1.3. A changing communications landscape 15

1.4. Enabling public understanding and ownership 17

1.5. A way forward to empower public understanding and ownership 17

References 18

Note 18

2. Demystifying the budget for key decision makers 20

2.1. How OECD countries are demystifying budgets for key decision makers 22

2.1.1. Activity to strengthen understanding of public finances among key decision makers varies in intensity 23

2.2. Building on good practices in improving understanding of public finances 27

2.2.1. Who can lead efforts to improve understanding of public finances? 27

2.2.2. Core competencies - what should efforts to improve understanding of public finances focus on? 28

2.2.3. Foundations for a broader framework 34

2.2.4. Improving understanding of public finances: Overcoming barriers to learning 34

2.2.5. Fostering a culture of evaluation and learning 38

2.3. Conclusion 39

References 40

Notes 42

3. How public finances are communicated 44

3.1. Existing practices in communicating about public finances 46

3.1.1. Communications: A whole greater than the sum of its parts 49

3.2. Why public finances need to be better communicated 51

3.2.1. Big numbers 51

3.2.2. A lack of salience 52

3.2.3. The "curse of knowledge" 53

3.3. Building on good practices 53

3.3.1. Insights from selected good practices 53

3.3.2. Additional considerations in improving how public finances are communicated 58

3.3.3. Key takeaways: Seven steps to improve fiscal communications 63

3.4. Conclusion 64

References 65

Notes 66

4. Citizen engagement: Beyond the ballot and into budgets 68

4.1. Efforts to engage citizens on budgets 70

4.1.1. How do governments engage with their citizens on the budget? 70

4.1.2. How do parliaments engage with stakeholders and citizens on the budget? 71

4.2. Why citizens must be engaged in efforts to restore public finances 72

4.2.1. Reinforcing legitimacy 72

4.2.2. Finding solutions 75

4.2.3. Testing the water 75

4.2.4. Managing expectations 76

4.2.5. Fostering ownership 76

4.3. Building on good practices in citizen engagement 77

4.3.1. Citizen engagement by governments 77

4.3.2. Citizen engagement by parliaments 78

4.4. Conclusion 82

References 83

Notes 84

5. Creating champions of fiscal sustainability 86

5.1. The emergence of fiscal advocates 88

5.1.1. What are fiscal advocates? 89

5.2. Why independent institutions are evolving 90

5.2.1. The next step in their evolution 90

5.3. Effective fiscal advocates 95

5.3.1. Developing a vision 95

5.3.2. Developing their independent voice 95

5.3.3. Enabling action 97

5.4. Measuring fiscal advocacy 97

5.4.1. Creating the optimal conditions for fiscal advocates 97

5.4.2. Assessing fiscal advocacy - a Fiscal Advocacy Index 98

5.5. Conclusion 104

References 105

Note 105

Tables 8

Table 3.1. Science-based guidance on communicating about public finances 59

Table 5.1. Fiscal advocacy is central to how IFIs were first envisaged 91

Table 5.2. It is in IFIs' remits to do the work of fiscal advocates 92

Figures 8

Figure 1.1. There is trust around service delivery, but less around the capacity to address long-term and complex policy decisions and the related process 14

Figure 1.2. The rise of digital communications for news 16

Figure 2.1. How parliamentary budget services promote understanding of public finances among elected officials in OECD countries 23

Figure 2.2. Three in four years spent in deficit 29

Figure 2.3. Impact of shocks: Why high debt ratios magnify risks 32

Figure 2.4. Delays require larger increases in income tax ratios to stabilise US federal debt 33

Figure 3.1. Communications efforts and impact vary among IFIs 48

Figure 3.2. Greater than the sum - the predictors of an IFI's communications impact 50

Figure 3.3. Adult misunderstanding of large numbers 52

Figure 3.4. Using visuals to communicate how public debt is "off the charts" in the Netherlands 54

Figure 3.5. Canada's ongoing navy commitments 55

Figure 3.6. Ireland's pension pressures 57

Figure 3.7. Seven steps to improve how public finances are communicated 63

Figure 4.1. How parliament roles in budgets differ across the OECD 71

Figure 4.2. Where people feel heard, they trust more 73

Figure 4.3. Committees can push citizen engagement further 79

Figure 5.1. IFIs have proliferated in the last decade and a half 89

Figure 5.2. IFIs help fulfil some of the activities of fiscal advocates 93

Figure 5.3. More resources tend to mean stronger communications functions 96

Figure 5.4. An ecosystem approach to sustaining fiscal advocacy 98

Figure 5.5. The outline of the 2024 OECD Fiscal Advocacy Index 99

Figure 5.6. The 2024 OECD Fiscal Advocacy Index 100

Figure 5.7. The 2024 OECD Fiscal Advocacy Index (at the country level) 102

Figure 5.8. There are clear cases of IFIs acting as fiscal advocates 103

Boxes 9

Box 2.1. The effectiveness of activities to improve understanding of public finances in Scotland, United Kingdom 26

Box 2.2. Using clear examples to heighten understanding of public finances - Ireland's experience with austerity 30

Box 2.3. Enhancing learning - reviewing the cognitive science 35

Box 3.1. Readability tools help, but they cannot do all the work 60

Box 3.2. How the ECB revitalised its communications 61

Box 4.1. Restoring public finances in the context of low trust 73

Box 4.2. Designing citizen engagement initiatives 74

Box 4.3. How solution-oriented initiatives boost literacy 75

Box 4.4. Citizens, stakeholders and meaningful participation 76

Box 4.5. Ireland's National Economic Dialogue (NED) 77

Box 4.6. Innovative methods to inform and gauge preferences 81

Box 4.7. The Almedalen model - a national forum for dialogue 82

Box 5.1. The complementary role played by supreme audit institutions 90

Box 5.2. Are independent fiscal institutions independent enough? Some case studies 94

Infographics 8

Infographic 2.1. Demystifying the budget for key decision makers 21

Infographic 3.1. How public finances are communicated 45

Infographic 4.1. Citizen engagement: Beyond the ballot and into budgets 69

Infographic 5.1. Creating champions of fiscal sustainability 87

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