pefa performance measurement framework a tool … · process two work groups convened – budget...
TRANSCRIPT
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PEFA Performance Measurement
Framework A Tool For Budget Reforms
THE GEORGIA
EXPERIENCE
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TOPICS OF DISCUSSION
Budget Reform Objectives
Process Description
PEFA Criteria
Findings
Recommendation
Actions
Next Step
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Need for Budget Reforms
Improved Public access
Budget and Organic law changes
Improved decision-making
Simplify process
Increase linkages between documents
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Main Components of Georgia Budget System
Basic Data and Directions – Macro Economic Assumptions
– Multi-year forecast
– Government priorities
– Ministry multi-year strategic plans
– Initial budget ceilings
Ministry Budget Requests
Draft Budget Law
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Georgia Budget (Continued)
Parliament Review
Approved Budget Law
Budget execution
Quarterly reports
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Objectives of Project
A budget circular providing clear and comprehensive guidance in developing the budget consistent with existing laws.
Enhanced content for improved decision-making
Strengthen interconnections between budget documents
Improved strategic focus within the budget.
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Process
Two Work Groups Convened – Budget Circular
– Budget Format and Content
Selected PEFA Standards for Evaluation – Criteria applicable to objectives
Applied standards to current budget
Identified actions to improve compliance
Conducted interviews and surveys with: – Budget department managers and staff
– Line ministry budget staff
– Parliament staff
Presented findings and recommendation
Implemented changes
Re-evaluated Budget against PEFA Criteria
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PEFA Performance Criteria
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Selected PEFA Performance Indicators
Comprehensiveness and Transparency
– Comprehensiveness of information included in
budget documentation (PI-6).
Policy Based Budgeting
– Orderliness and participation in annual budget
process (PI-11).
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Comprehensiveness Elements (PI-6)
Budget should include:
Macro-economic assumptions for three years
including the prior year.
Fiscal deficit
Deficit financing
Debt stock
Financial Assets
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Comprehensive Elements (Continued)
Prior year’s outrun
Current year’s budget in same format as the
budget proposal
Summarized budget data for both revenue
and expenditures for main classifications
including for current and prior year.
Budget impact of new policy initiatives
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Orderliness and Participation (PI-11) Elements
Budged process should exhibit:
– Existence of and adherence to a fixed budget
calendar.
– Political involvement in preparing the budget
circular
– Timely budget approval by the legislature
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Initial PEFA Assessment of Format
Scored “C+” “Document fulfills 3-4 of the 9 Benchmarks.”
Identified 14 improvements:
1. Add 2007-2010 macroeconomic summary table
2. Include government priorities
3. Add summary tables by classification for
expenditures
4. Add five year fiscal impact table
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Format Improvements (continued)
5. Add grant summary table by organization
6. Add information on capital revenue sources
7. Include prior year actual in all budget tables
8. More information on deficit financing
9. Use GFS 2001 to calculate data
10. Add external debt by country table.
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Format improvements
11. Add state financial assets table
12. Include spending institution programs and
priorities.
13. Show capital projects for each spending
institution
14. Create Citizens Guide to the Budget.
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Initial PEFA Process Assessment
Self-assessed “C”
Identified 7 areas of improvement resulting in the following actions: – Multi-year conversion of budget to GFS standards
– Additional explanatory information for: Financial condition
Government priorities
Basis of expenditure ceilings
New programs and services
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Process Improvements (Continued)
Revised and improved all budget forms
Simplified economic classifications
Merged two forms.
Added form to collect information on donor and grant revenues.
Added form on program enhancements
Added form for three year budget summary
Revised capital expenditure information requirements
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Budget Improvements
Added form for ministries to provide four
years of information on:
– Priorities
– Strategies
– Actions
– Programs
– Budget
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Budget Improvements
Added form identifying by ministry how any
excess funds will be allocated.
Improved communications and coordination
between ministry and central budget staff.
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PEFA Assessment After Improvements
Process: B
Format: B+
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Summary of Improvements
Improved strategic connections between BDD, Ministry Budgets, and budget laws.
Pre-planning for revenue surpluses.
Simplified budget process
Improved content
Increased utility for decsion-maiking
Clearer budget preparation guidelines
Improved working relationships between Ministries and Central Budget Department
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Observations on the Use of PEFA
Provides useful tools for assessing the
process and format of the budget.
Can result in focused and meaningful
changes.
Promotes international standards and
therefore comparability of budgets.
Improves communciations
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Next Steps
Strive to reach an “A” grade for both the format and process category.
Complete conversion to GFS 2001 classifications
Institutionalize changes, e.g. annual publication of citizens guide.
Assess budget against other PEFA elements
Use elements to improve capital budget
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Questions?