Extractive sector revenue collected by the government is often distributed in a number of different ways and involves several different institutions.
Transparency in revenue allocations enables citizens to track whether the money from the extractive sector ends up in the national budget or is distributed to other funds or government entities.
The disclosure of information related to revenue allocations enables stakeholders to understand how revenues are recorded in the national and where applicable, subnational budgets, as well as track social expenditures by companies.
The EITI Standard includes provisions to ensure that the distribution of revenues from the extractive industries is clearly addressed. This ensures that citizens can “follow the money” from the oil, gas and mining sectors, and link EITI data to other public financial management reporting.