The Future of Slovenia New Slovenian development strategy & connection to performance budgeting

1. The Future of Slovenia New Slovenian development strategy & connection to performance budgeting Katja Lautar, MoF Slovenia Ljubljana, June 2016, SBO CEE

2. The Process VISION STRATEGY ACTION Where would we like to be in 2050? From words to deeds How to get there? StrategiC priorities Action plan Conrete projects Structural reforms Budget Mechanisms of horizontal cooperation (whole-of-gov approach) Goals indicators Picture or description of a country/society/individual in 2050 Areas of development until 2030 on which we need to build to bring the Vision 2050 to life Milestones that we need to reach to implement strategic priorities Conrete, Measurable and Timeframed Measurements that show how successful we are in reacing our goals December 2016 May 2016 2017

3. QUALITY OF LIFE TRUST INNOVATIVENESS IDENTITY KNOWLEDGE AND SKILLS

4. What was theproblem in connection DS to PBB? • Old budget (before 2010): • Importantmanagement-relatedinformationmissing – Parliamentneedsmoreinformationforpoliticaldecisions • Onlyinputandnooutputorientation (writtenresults): Who getshowmuch, insteadofwhathastobetheoutcome? • From 2010 on: • Nolong-term, legallybindingbudgetmanagementorlong-term preview • Not reflecting general government • Big- sized, non flexible budgetstructure; lack oftransparency, toomanydata? • Bigger Picture missing: What do wewanttoachievewiththebudget? MOTIVATION?

5. Challenges Political decision based on the analysis? Ex – post evaluation by independent bodies Ex ante assessment of alternatives before decision

6. PBB is a step towards... »Programme budget«: (1) is a new way of thinking about public planning; (2) is not a theoretical construction only, but also an actual manner of drawing up the budget; (3) is referred to by various names, the literature makes a difference between outcome budgeting and performance budgeting; (4) has an actual impact on decisions regarding the allocation of funds to competitive state users – agencies, ministries and programmes; (5) represents a victory of a theory over (budget) processes up to the point where impacts/benefits and their corresponding costs define how an X amount of funds should be allocated to A and B activities. Changes in monitoring and implementation, as well as a bureaucratic apparatus?

7. Graph: Hierarchy of SLO VALID targets and indicators Source: Government Office for Development and European Affairs

8. Slovenia 2050 - System map – first draft Source: Vandenbroeck

9. Model of Performance externalfactors Indicator: reducingpot.yearsoflifecost higherlifesatisfaction Objective: Improvedwellbeing (betterhealth) objectives objectives public administration/service providers outcome/impact input output activities Life expectancy at birth (men, women), number of years) Healthy life years at birth, (men, women), number of years • Personnel, financialandotherresources • Reducingwaiting list/time • Share of overweight children (6 to 15 years of age), in % • Share of regular smokers aged 15+, in % • Unmet needs for health care services, share of the population in the income bracket, in % • redefinitionofbasketofservices • newinvestments • improvedqualityinsurancesystems • commonpublicprocedures... Source: Performance Management in Austria, SDS – module 2

10. Proposal of the connection of strategic planning and budgeting

11. „Missing incentives“ vs. burecratics cost • „Consequencesaremissedwhenobjectivesare not attained.“ • „Outcome orientationleadstoincreased administrative effort.“ Objectives to meet in 2016/17: Tointroduceoutcomeorientation Support prioritysettingandallocationofresources Strengthenaccountability & transparency Source: Perfomance Management in Austria, SDS – module 2 & 4

12. katja.lautar@mf-rs.si Adaptability is not all you need to succeed; it is inherently reactive and relies on luck.   Implementation strategy is what you need—and if you don’t have one, you will become part of someone else’s.... Tom Johnson, Toffler Associates and Alan White, MIT BUT: NZ has succeed!