Survey Results of PEMPAL Budget Community of Practice in Tbilisi, Georgia

1. Survey Results PEMPAL Budget Community of Practice Tbilisi, Georgia

2. The BCOP Survey • 11 countries responded • Both great agreement (5-11) • And divergence (4-0) • This professional sharing of experience is the essence of PEMPAL THANK YOU

3. Survey Results: Questions

4. Survey Results: Response

5. Survey Results: Responses Total 10 0 1 2 5 0

6. Survey Results: Comments Slovenia 4. Programs are established according… 5. Functional classification is used… 7. Program classification was used… Slovakia 10. NUMBER OF GOALS WAS LIMITED TO … 12. SLOVAK NATIONAL AUDIT OFFICE IS…

7. Questions/statements that might be generated: • Why did Hasobonia say “yes” on Question 6.b.? • Why are we the only one saying “yes” on Question 10.k.? • Can we use these as benchmarks? • Do we want to? • I don’t agree with some responses for our country.

8. In Draft Mission Statements for BCOP • Reference to working with OECD countries to identify good practices in Program Budgeting

9. OECD Meeting on Performance Budgeting – June 11-12, 2007 • Performance Budgeting reform: to improve decision making by providing more concrete information on what is accomplished with the money

10. OECD Definition • Form of budgeting that is based on a relationship between allocation and results • Beyond this there is little agreement on: • Type of information • At what stage of budgeting it should be introduced • How to relate performance information and resource allocation

11. Important Factors to Keep in Mind • There is no single model – countries need to adapt to relevant political and institutional contexts • Whole-of-government planning and reporting framework is important • Performance Information should be integrated into the budget process

12. Important Factors to Keep in Mind • Systems that automatically link performance results to resource allocation should be avoided – may distort incentives • It is often difficult to identify causes of poor performance • Must update output data continuously • Evaluations and assessments should be independent

13. Important Factors to Keep in Mind • It is vital to have support of political and administrative leaders • Staff capacity at the MOF and spending ministries is critical • Reforms must adapt to evolving circumstances • There must be incentives for civil servants and politicians to change behavior

14. 3 Categories of Performance Budgeting • Presentational: • Simple display of allocation and results (targeted or realized) • Purpose: accountability • Performance-informed: • Performance information along with other factors is taken into account • Purpose: planning and accountability

15. 3 Categories of Performance Budgeting • Direct/formula: • Funding is based on results achieved • Purpose: resource allocation and accountability [Note: Used only in specific sectors in a limited number of OECD countries. Acts like a contract]

16. Let's Move Ahead ! Managing Public Expenditure A Reference Book for Transition Countries Edited by Richard Allen and Daniel Tommasi PERFORMANCE BUDGETING IN OECD COUNTRIES(PRELIMINARY VERSION)ANNUAL MEETING OFTHE OECD SBO NETWORK ON PERFORMANCE AND RESULTSWASHINGTON DC11-12 JUNE 2007