Meaningful participation and systematic public engagement are essential for effective climate budgeting. Without robust participation, there is a strong risk that government financing will be misaligned with people’s needs and priorities for climate change. As climate change accelerates, the burden on households is increasing. In Bangladesh, for example, climate-related expenditures of rural households are more than double the government’s spending on climate and disaster risk reduction and more than 12 times higher than multilateral international financing for Bangladesh’s rural population. Using a case study approach, this paper explores the role of public participation in climate budgeting in Bangladesh, Indonesia, and Nepal through interviews, secondary data, and adherence to the Global Initiative for Fiscal Transparency’s Principles of Public Participation in Fiscal Policy. The analysis finds scope for improvement in all three countries and identifies additional research needed to fill the gap in the literature on public participation in the context of climate budgeting.

______________________________________

This paper is a product of the PEFA Research Competition 2020: The Interplay of Climate Change and Public Financial Management. The PEFA Research Paper Series provides open access to PEFA-sponsored research to disseminate quickly knowledge that contributes to ongoing PFM discussions around the world. The broader objectives of the PEFA Research Competition are to contribute to addressing gaps in knowledge on fiscal management, how to improve PFM systems, and the practical implementation of PFM reform. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in the papers are entirely those of the authors. They do not necessarily represent the views of the PEFA Program or those of the PEFA partners.