Program and Performance Budgeting

Online course: November 7 – 21, 2017IWorkshop: November 29 – December 1, 2017ILjubljana, SloveniaIAccounting, Auditing, Budget Preparation and Execution

This learning initiative was be delivered as part of the ’’Strengthening Financial Management Functions of Line Ministries’’ project, which assists line ministries strengthen capacities for efficient delivery of their financial management functions (see www.cef-see.org/lineministries). It was funded by the World Bank’s SAFE Trust Fund (established by the EU and SECO). Complementary funding was provided by the Dutch and Slovene Ministries of Finance. UN Women contributed in-kind sessions on GRB.

Governments aim to ensure efficiency and effectiveness of public spending, while improving overall policy performance with different innovations. In this regard, arrangements, such as, program and performance and budgeting (PPB) are being introduced.

Performance budgeting can be viewed as a step forward from classifying budget funds according to joint outcomes, to allow reflection on performance information when making budgetary allocation decisions. Its potential benefits include improvement of the linkage between budgeting and strategic policy planning, attaining value-for-money of public spending, making available information on achieved results of budgetary spending, and addressing accountability issues.  

Although most of countries in South East Europe (SEE) have taken first steps in implementing PPB elements, progress has been limited. PPB reform success depends – inter alia – on capacities of line ministries, the quality of performance information, accountability arrangements, coordination issues, and sequencing of reforms.

To better prepare SEE countries for PPB reform, it is important to convene finance officials to discuss PPB reform challenges and progress. We we explored what needs to be considered to make performance-informed budgeting work, including the position and role of performance information in a wider budgeting and strategic planning context.

What it was about

  • E-learning phase, Nov 7-21

At our Online Learning Campus, participants were be introduced to key PPB concepts, importance of program classification, and program performance indicators; and were able to explore the role of performance budgeting in a wider budgeting context, the link between strategic policy planning and budget preparation cycle, as well as critical coordination aspects.

The two e-learning units (each lasting one week) featured reading materials, short video lectures, and interactive exercises, enriched with a weekly online meeting that allows participants to discuss the course contents. ​

  • Face-to-face workshop, Nov 29-Dec 1, Ljubljana

The subsequent 3-day workshop was practically-oriented and examined in detail PPB tools and concepts, and engaged participants in discussions on how those concepts were implemented in different countries.

We  discussed how to prepare an effective and well-balanced program classification. In cooperation with UN Women, we also examined how the use of performance information can be intensified with gender-responsive budgeting (GRB). 

Different tools for strengthening PPB were explored, which included thinking about reviewing the reform process, including internal audit aspects; establishing non-financial performance reporting procedures and responsibilities; conducting spending reviews and evaluations; assuring the role of supreme audit institutions through performance audits; and assuring an appropriate legal framework. 

What were the benefits

By completing this learning initiative, participants were able to:

  • Reiterate key PPB concepts
  • Describe key challenges of making PPB effective
  • Examine different tools connected to program budgeting and how to use it to strengthen budgeting reforms
  • Define practical approaches based on experience in SEE countries that could be used to strengthen PPB
  • Identify opportunities to strengthen coordination between line ministries and ministries of finance in program preparation

Who was it for

Invited were SEE public officials who are working at ministries of finance, line ministries, and central planning and coordinating institutions, and involved in:​

  • budget preparation and execution processes
  • preparing, assembling and prioritizing inputs for sectorial strategic planning documents
  • management of policy programs
  • design of program and performance budgeting frameworks in their country.

Faculty

Marc Robinson, Senior Consultant

Dr. Marc Robinson is a European-based senior consultant specializing in public financial management, performance budgeting and fiscal policy. He has worked with governments in more than thirty countries, on four continents, to improve their budgeting systems. Marc held previous positions as a senior civil servant, professor of economics, and staff economist at the International Monetary Fund.

Dr. Robinson is a member of the OECD Advisory Panel on Budgeting and Public Expenditures, and also of the IMF Panel of Fiscal Experts.

Elisabeth Klatzer, International Consultant of UN Women

Dr. Elisabeth Klatzer has more than 15 years of experience working in research, advocacy and consultancy in the field of Gender Responsive Budgeting, Public Finance Management as well as gender and economic policy. After years of pioneer work on GRB and the integration of GRB in public finance management reform in Austria, since 2009 she worked on GRB initiatives and public finance management in a broad range of countries around the world, with a focus on South Eastern Europe and Eastern Europe.A particular strength of Dr. Klatzer is her unique background in different spheres of importance in the context of gender responsive budgeting and public finance management. She combines experience from more than 10 year of work as civil servant with her extensive work as a researcher, civil society actor and as an international consultant.

Irena Roštan, Ministry of Finance, Slovenia

Katja Lautar, Ministry of Finance, Slovenia

Wim Kooij, Special advisor Financial Management Control with Ministry on Infrastructure and Transport , the Netherlands 

Majda Sedej, USAID

Mitja Gaspari, International Consultant

Martin Noveski, Ministry of Finance, Macedonia

Nihad Nakaš, CEF

Partners

This learning initiative was supported by:

Slovenia's Development Cooperation Safe Ministry of Finance, the Netherlands
Ministry of Finance Slovenia