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Strengthening Budget Execution

Strengthening Budget Execution. Fruits of Experience. PUBLIC EXPENDITURE MANAGEMENT BENCHMARKING AND PEER LEARNING WORKSHOP Marriott Hotel, Warsaw, Poland April 2-5, 2006 . Why is budget execution important?. Budget credibility Manage Spending and Revenues to budget

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Strengthening Budget Execution

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  1. Strengthening Budget Execution Fruits of Experience PUBLIC EXPENDITURE MANAGEMENT BENCHMARKING AND PEER LEARNING WORKSHOP Marriott Hotel, Warsaw, Poland April 2-5, 2006

  2. Why is budget execution important? • Budget credibility • Manage Spending and Revenues to budget • support choices of elected officials • allow budget to be planning and steering tool • promote macrofiscal discipline • reduce opportunities for corruption • Enable program implementation • assure resources flow to programs • allow budget to be aid to operational efficiency through spending unit advance planning, efficient administration • enable program managers to achieve objective

  3. Common Problems in Budget Execution - Symptoms • Large deviations between approved budget and actual spending • Policy and planning undermined • Spending above approved levels • Cash shortfalls, arrears • Sometimes with cash surpluses elsewhere • Cash management supporting central treasury needs, but ignoring service delivery needs • Project cost increases • Undermining program performance • Weak internal controls, with waste, fraud and abuse • Insufficient record-keeping, inability to audit • Untimely reporting, inability to manage spending • Insufficient auditing, no self-correction to system

  4. Issues for today • Issue 1: Expenditure control, cash management, and service delivery • Issue 2: Modern information technology and budget execution • Session guidelines • 40 minutes per question • 5-10 minutes for wrap-up • Panelists: 5 minute limit

  5. Issue 1: Expenditure control, cash management, and service delivery • What major problem encountered and reform undertaken to • enhance control over expenditure • enhance cash management and planning • be responsive to line ministry and program needs • Have these solved the problem? Why or why not? • Experts: what other lessons or experiences

  6. Issue 2: Modern information technology and budget execution • How your government uses financial management information systems (FMIS) in managing the budget? • Benefits and limitations of current system • What lessoned learned in implementing the current system? • Obstacles, challenges, solutions • Future development • What advice to give others embarking on reform?

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