International trends in performance budgeting - Anne Keller, OECD

This presentation was made by Anne Keller, Public Governance Directorate, OECD, at the 14th Annual Meeting of the OECD Senior Budget Officials Performance & Results network held at the OECD Conference Centre, Paris, on 26-27 November 2018

1. 2018 OECD Performance Budgeting Survey
Key Findings and trends
Anne Keller
14
th
Annual Meeting of the OECD SBO Performance and Results Network
OECD Headquarters, Paris
26-27 November 2018

2. “A single flagship
publication for SBO”
What is the “state of
the art” in modern
budgeting?
What are the key
challenges that
countries face?
Context I: OECD Budgeting Flagship Publication
2

3. Budgeting
within
fiscal
objectives
Context II: OECD Framework of Modern Budgeting
Quality,
integrity &
independent
audit
Performance,
Evaluation &
VFM
Comprehensi
ve budget
accounting
Effective
budget
execution
Alignment
with medium-
term strategic
plans and
priorities
Performance,
evaluation &
VFM
Transparency,
openness &
accessibility
Participative,
Inclusive
&Realistic
Debate
Fiscal Risks &
Sustainability
Capital
budgeting
framework
3

4. •FifthOECD PB Survey
•Coverage:
45 questions on
Performance Budgeting
SpendingReview
Evaluation
•RespondentsmainlyfromCBAs
•Responserate: 33 countries (out of 35)
•Somedata cleaningisongoing
all 2018 data in thispresentationiscomingfromthe
2018 OECD Performance BudgetingSurvey
4
2018 OECD Performance Budgeting Survey

5. Part I –Performance Budgeting
5
2018 OECD Performance Budgeting Survey

6. 6
Performance Budgeting
Use of performance frameworkscontinues to increase
over time and are the normacrossthe OECD

7. 7
Performance Budgeting
Target setting tends to bedoneby line ministries,
and itscoveragevaries
Coverage of performance
targets (2018)
Responsibility for
target setting (2018)

8. 8
Performance Budgeting
Increaseduse of performance information -acrossa broad
range of stakeholders–isobservedover the last 5 years
Numberof countries

9. 9
Performance Budgeting
SpendingReviewinformation isbecomingmore important and
ismore likelyto beusedduringbudget negotiations

10. 10
Performance Budgeting
The greatest benefits are increased transparency about objectives,
and the quality and usefulness of performance information

11. 11
Performance Budgeting
Coordination problems are the biggest challenge
Main challenges for the implementation of performance budgeting (2018)

12. 12
Performance Budgeting
Gender is one of the thematic objectives most likely to be
systematically integrated into performance frameworks
Indicators of cross cutting or thematic objectives in the budget (2018)

13. 13
Performance Budgeting
SustainableDevelopmentGoals (SDGs) are not yetsystematically
reflectedin performance frameworks
Reflection of SDG targets and indicators in national frameworks (2018)

14. 1.Use of performance frameworkscontinues to increaseover
time and are the normacrossthe OECD
2.Target setting tends to bethe responsibilityof line ministries
and coverageacrossprogrammes varies
3.Over recentyears, increaseduse of performance information
-by a broadrange of stakeholders-has been observed
4.SpendingReviewinformation isbecomingmore important
and isincreasinglylikelyto beusedduringbudget
negotiations
5.Performance Budgeting has increased the transparency of
programmeobjectives and the quality and usefulness of
performance information
6.Coordination problems are the biggest challenge for
Performance Budgeting
14
Performance Budgeting(PB) –Key Observations

15. Part II –SpendingReview
15
2018 OECD Performance Budgeting Survey

16. 16
SpendingReviews
Continuedincreasein numberof countries conducting
spendingreviews
Adoption of spending reviews (2011-2018)

17. 17
SpendingReviews
Focus ismovingawayfromshort-termbudget cutsto a more medium-
termviewon efficiencyand an improvedprogramme impact
Main objectives of Spending Reviews over the past 10 years (2018)

18. 18
SpendingReviews
Key resulthas been the reallocationof spendingto match
governmentpriorities
Main results of Spending Reviews over the past 10 years (2018)

19. 19
SpendingReviews
Main challenges are the availabilityand qualityof
performance information
Main challenges for the implementation of spending
reviews’ results/recommendations (2018)

20. 1.Continuedincreasein numberof countries conducting
SpendingReviews
2.Focus ismovingawayfromshort-termbudget cutsto
–a more medium-termviewon efficiency
–improvedprogramme impact
–alignmentof spendingwithgovernmentpriorities
3.Main challenges are the qualityand availabilityof
performance information
20
SpendingReview(SR) –Key Observations

21. Part III –Evaluation
21
2018 OECD Performance Budgeting Survey

22. 22
Evaluation
Mainlyconductedby line ministriesand agencies
Governance of ex-ante and ex-post evaluation (2018)
in number of countries

23. 23
Evaluation
Continues to have a limitedbudgetaryimpact
How often are evaluation findings used during budget negotiations
between the CBA and line ministries? (2018)

24. 24
Evaluation
Findings have more influence on budget allocations at the
decentralisedlevel(programmes) thanat CBA

25. 25
Evaluation
A big constraint is the lack of a formal mechanism to consider
evaluation findings in the budget process
Main constraints limiting the use of evaluation evidence
in budgeting (2018)

26. 1.Evaluationsare mainlyconductedby line ministries
and agencies
2.Budgetaryimpact
–Evaluationcontinues to have a limitedbudgetaryimpact
–More influence on decentralisedlevel(programmes) than
at CBA
3.A big constraint is the lack of a formal mechanism to
consider evaluation findings in the budget process
26
Evaluation–Key Observations

27. THANK YOU !
OECD Senior Budget Officials Network on Performance and Results:
www.oecd.org/gov/budgeting/seniorbudgetoffici
alsnetworkonperformanceandresults.htm
For more information