G overnment E xpenditure 9 advantageous in the short run as the borrowing is not included as part of public sector debt. However, in general, private companies face higher rates of interest than the governments, so the costs of the investment are higher. In addition, it is difficult to hold the private companies to account for the fulfillment of complex contracts. Typically the contracts transfer risks to the government, so that if the enterprise is mismanaged or delivery is poorly implemented, the public sector is forced to assume the burden of correcting the problem. The private companies frequently hire workers with fewer social protections than public sector employees, entailing retrogression with regard to labor rights. Bearing all this in mind, a balanced analysis would consider whether PPPs actually bring in extra resources, explore who is really paying the full set of costs, assess the sustainability of the arrangement over time, and determine what actually is gained with PPPs. Participation, Transparency and Public Expenditures Budget allocations should be determined in ways that are participatory and transparent. The type of participation, at what stage of the budget process it takes place, and the share of the budget open to participation should all be considered. Civil society organizations, including human rights organizations, are now actively engaging with government budgets in many countries. The participation of human rights organizations leads to framing consideration of budgets in terms of government obligations, non-discrimination, progressive realization, core obligations and non-retrogression. It is important to recognize that strengthening participation and transparency requires resources. The collection and dissemination of timely information requires resources. Budget information needs to be compiled in categories which are useful for monitoring spending priorities with regard to social and economic rights, and made accessible to the general population. Fiscal Austerity Sometimes overall public expenditure needs to be cut to reduce unsustainable budget deficits. Not every budget cut is necessarily retrogressive, but the human rights principle of non-retrogression emphasizes that the size and scope of expenditure cuts must be carefully examined. Governments have an immediate government obligation to provide the minimum core of ESCRs to safeguard the most deprived. This suggests two questions must be answered. First, is the fiscal austerity plan based on an appropriate balance between cutting expenditures and increasing taxes? Second, what are impacts on the poorest and most deprived of the cutbacks, and how can the rights of these groups be safeguarded?