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PEMPAL Workshop – March 13 th 2018

Austrian Budget Reform - Performance Budgeting. PEMPAL Workshop – March 13 th 2018. Outline. Overview budget reform Performance budgeting framework Gender budgeting Example : Education. Austrian federal budget reform. Primary motivation: Improved budgetary decision-making

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PEMPAL Workshop – March 13 th 2018

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  1. Austrian Budget Reform - Performance Budgeting PEMPAL Workshop – March 13th 2018

  2. Outline • Overviewbudgetreform • Performance budgetingframework • Gender budgeting • Example: Education

  3. Austrian federal budget reform • Primary motivation: Improved budgetary decision-making • Addresses the following weaknesses of the former system: • No binding medium-term perspective • Prevailing focus on inputs • Control monopoly of classic cameralistics • The budget as a comprehensive steering instrument for resources & outputs & outcomes • Implementation in two stages: 2009 and 2013

  4. Overview 1st and 2nd stageofthebudgetreform  Budgetary discipline and planning:binding Medium-Term Expenditure Framework(MTEF) & strategy report 2009 2013 4 key elements  Flexibility for line ministries through full carry-forward possibilities without earmarking Result-oriented management of administrative units Performance Budgeting incl. gender budgeting Accrual budgeting and accounting New budget structure: „lump-sum budgets“ new budget principles: outcome-orientation; efficiency; transparency; true and fair view

  5. Budget planning process • forecasts on a quarterlybasis • by an independentresearchinstitute • top-down MoFtargets • budgetnegotiations • passedbyParliament in May* • budgetcontrolling • in-yearreporting • newlaws/projects • shiftingoffunds • reserves • annualbudgetimplementing MTEF • budgetspeech in October • passedbyParliamentbefore end ofyear * Amendment in 2017: alignment of the planning processes in autumn (MTEF and annual budget)

  6. New budgetstructure Total Budget Headings MTEF: 5 Headings Budget Chapters ~ 30 ~70 global resource frameworks instead of more than 1000 appropriation line items Global Budgets enacted by Parliament Detail Budgets binding within public administration ~ 250; shown in the budget flexible steering tool, easily adaptable to specific requirements Cost Accounting Transparent budget structure as a prerequisite for other reform elements

  7. Budget 2017 33 budgetchapters 5 budgetheadings

  8. Integration of 3 perspectives: organisation, budget, performance Budget Structure Organisational Structure Performance Information Budget Chapter Mission Statement; OutcomeObjectives Line ministry headed by the minister GB 2 Primary Activities* Primary Activities Global- budget 1 GB 4 Primary Activities Primary Activities GB 3 * to achieve outcome objectives Budget managing bodies Explanatory budget documents based on performance contracts xxx Detail Budgets

  9. Performance budgetingframework Budget Chapter Annual Budget Statement Max. 5 outcomeobjectivesat least 1 gender Mission statement Global Budget1 – 5 primaryactivitiesat least 1 gender Global Budget1 – 5 primaryactivitiesat least 1 gender Global Budget1 – 5 primaryactivitiesat least 1 gender Explanatorybudget documents Detail budget Detail budget Detail budget Detail budget Detail budget Detail budget Detail budget Detail budget Detail budget Objectives and Objectives and Activities Objectives and Activities Objectives and Activities Objectives and Activities Objectives and Activities Objectives and Activities Objectives and Activities Objectives and Activities Activities genderincluded P e r f o r m a n c e C o n t r a c t s

  10. Gender budgeting Definition by the Council of Europe* Gender budgeting is an application of gender mainstreaming in the budgetary process.It means a gender-based assessment of budgets, incorporating a gender perspective at all levels of the budgetary process and restructuring revenues and expenditures in order to promote gender equality.

  11. Whygenderbudgeting? • To foster gender equality: Focus on the most important levers. • Budgetary decisions are KEY decisions: Government policy is put into numbers. • Therefore: Using the budget as a lever for gender equality!

  12. Applicationofgenderbudgeting • Constitutional budgetaryprinciple: outcomeorientationincludinggenderequality • Integrated approach: genderequalityistobeconsidered in policymakingandmanagement (strategyreport, annualoutcomeandoutputstatements, performancecontracts) • Goes beyondsimplyallocating separate budgetsforwomenandmen • Integrated gendermainstreamingandbudgetingrequires • genderanalysis • identificationofchallenges • definitionofobjectives (i.e. outcomestatements) • actiontobetaken (i.e. outputstatements) • evaluationandreporting (i.e. Annual Federal Performance Report)

  13. Examplesof gender-relatedoutcomeobjectives • Education • Promotingequality in theeducationalsystem (reducinggender, ethnicandsocioeconomicinequality) • Family and Youth • Facilitatingthereconciliationofworkandfamiliylife • Labour market • Reintegration ofwomenintothelabourmarket, especially after parental leave • Interior • Betterprotectionagainstviolence, especiallyviolenceagainstwomen, childrenandelderlypeople • Finance • Increasingthepercentageofwomen on thesupervisoryboardsofstate-ownedcompanies

  14. Budget structure - example • Heading • Education, Research, Arts and Culture • Budget chapter • Education • Global budget • Schools incl. teachingstaff • Detail budgets • Primary schools, generalsecondaryschools • Grammarschools (lowerlevel) • Grammarschools (upperlevel) • Pre-vocationalschools • Vocationalschools • Austrian schoolsabroad • …. in total 10 detailbudgets

  15. Strategyreport (budgetchapter)

  16. Annual budget statement (budget chapter) Budget chapter: Education Legally binding

  17. Annual outcomestatement (budgetchapter) Budget chapter 30 – Education Mission statement The ministry is responsible for shaping the framework of education policy. Improving the level of education and the equality of opportunities and gender. Outcome objective 1 Improving the education level of pupils Outcome objective 2 Improving the equality of opportunities and gender in the education system

  18. Annual outcomestatement (budgetchapter) Outcome objective 1 Improving the education level of pupils Indicator 1 % of 18-20 year olds who have finished upper secondary education Last availablevalue 2013: 87,8% Target value 2017 89,0% • Indicator 2 • % of pupils who still attend any form of education 1 year after mandatory schooling ends Last availablevalue 2014 93,8% Target value 2017 94,2% Indicator 3 % of 5th graders who are eligible to advance to the next grade Last available value 2014: 94,6% Target value 2017 94,7%

  19. Budget chapter at a glance Budget chapter: Education = financialinformation = performanceinformation (outcomestatement)

  20. Annual budget statement (global budget) Legally binding

  21. Annual outputstatement (global budget) Outcome objective 1 Improving the education level of pupils Global budget 30.02 Schools incl. teachingstaff Global budget 30.01 Governance & Services Indicator Number of school places at upper and lower secondary school Primary activity 1 Quantitative and qualitative extension of full time schooling… Currentvalue 118.000 Target value 2017 ≥200.000 Currentvalue All classesfrom 5th grade upwards (9.003) Target value 2017 all classesuntilgeneration 6 Indicator 1 number of classes using this model • Primary activity 2 • Implementation of the „new secondary school“ with a teaching and learning culture … Currentvalue Learndesigners (generation 8) takepart in advancedtraining Target value 2017 Certified learndesigners (generation 8) Indicator 2 Number of new learning designers in schools ….

  22. Global budget at a glance Global budget: Schools incl. teachingstaff = financialinformation = performanceinformation (outputstatement) = recommendationsbythe Court of Audit

  23. Explanatorybudgetdocuments (detailbudget) Objective Ensuring a high quality, European and internationally competitive Education, that opens up private and occupational development opportunities • Detail budget 30.02.03 • Pre-vocationalschools Activity 1 Implementing the Goals of the QIBB-Initiative in the context of school development plans Indicator/Milestone 1 Finalization of School Development Plans (EUP) 2013/2014 Budget 2017 • Personnel expenses: 2.2 Mio. € • Operatingexpenses: 0.2 Mio. € • Transfer expenses (to “Laender”) : 164.8 Mio. €

  24. Detail budget at a glance • Detail budget: Pre-vocationalschools = financialinformation = performanceinformation

  25. Performance budetingprocess

  26. Annual Federal Performance Report Performance Management Office Parliament & interested public Ministries • evaluation • statement on achievementofobjectives • reporting • standardisation • qualityassurance • coordination • reporting • discussion of results • political accountability 31 May 31 October

  27. Conclusions Challenges • Requires relating budget to results • Exceeds the scope of mere budget management • Entails cultural change on the federal administrative and political level(setting priorities, transparent decision-making, etc.) • Improvement of quality of performance information (ongoing process) Opportunities • Facilitatestargeted policy-making on political level • Enables the administrative level to present its results & achievements • Citizens are provided a better insight into where tax money is put

  28. Thankyouforyourattention Contact: Monika Geppl Advisor Directorate General for Budget and Public Finances Department for Spending Reviews and Administrative Reform phone: +43 1 514 33 502051 e-mail: monika.geppl@bmf.gv.at https://english.bmf.gv.at/

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