1. South Africas MTEF Effective expenditure for development Malawi Poverty Monitoring System Workshop 24-26 July 2002

2. What is the MTEF? MTEF sets out 3-year rolling spending and revenue plans for national and provincial government 2002 Budget is the 5th MTEF budget tabled in Parliament

3. Advantages of a MTEF Greater certainty for depts to plan and budget for services in line with policy priorities Affordable spending in the medium term Strengthened political decision-making and accountability Greater transparency of budget and service delivery information for the public Improved management of public finances

4. Key budget format reforms... Extension of medium term information in the 7-yr trend information enables comparative analysis Service delivery information - specifying outputs and output measures and indicators Emphasises value for money Move towards quantity, quality, timelines and cost measures and indicators in subsequent Budgets Tracking and making progress in service delivery is key message

5. Helps departments plan, budget and manage programmes better Improves accountability and control Informs policy- and decision making Provides information to the public about what goods and services government buys Budgeting for service delivery

6. First step: Depts asked to develop output or quantity indicators For certain policy depts, quality and timeliness indicators proved more appropriate Considerable difficulties experience in defining meaningful and manageable indicators Learning by doing NB to ensure policy and budget teams work together 2001 Budget….

7. Key problems identified Benefits of measuring performance not fully understood Limited collaboration between financial and operational staff Inconsistent interpretation of terminology Departments made use measures that are readily available

8. Key message: consolidate and improve service delivery indicators Depts to develop service delivery targets or milestones for each measure or indicator that has been identified Quality, timeliness, and cost measures & indicators the focus in future years Change of mindset towards performance monitoring is required Is an iterative process that takes time 2002 Budget...

9. Focus on: Getting the terminology right –clarifies how service delivery and performance measurement tools are used Assisting departments to –specify appropriate measurable objectives and outputs, –develop robust output measures and indicators and –set realistic targets Measuring service delivery...

10. Getting the terminology right Outcomes –The end result that Government wants to achieve and refers particularly to the general state of wellbeing in the community. safe and secure environment, healthy citizens, etc Indicators –Assess the impact of programme outputs on the desired outcomes that Government wants to achieve. rate of repeat offenders being jailed

11. Specifying outputs Outputs –Answers the question what it is we deliver? –Output is a final good or service that is delivered to external clients –Important factors that apply when describing outputs, are: External focus (avoid activities and management outputs) Fall within the control and accountability of department Comprehensive

12. Simple, clearly expressed and specific Reliable Easily measurable Manageable Ensure accountability Service delivery measures & indicators should be...

13. Why measure performance? Some of the more common reasons are: –Enhances the quality of services –Contributes to better budgeting –Assists in the application of management accountability A more important reason has emerged: –Ascertain the extent to which programme outputs are improving the social and economic wellbeing of a community.

14. Cycle of reporting Requirement of forward-looking strategic plans for 2002-2004 –Service delivery outputs, measures and targets Budget format draws summary of service delivery information presented in strategic plan Past reviewing Annual report reviews service delivery progress and achievements against targets set out in strategic plan

15. Tracking output measures and indicators in terms of service delivery targets informs departmental managers, policy and decision-makers and the public about the progress that Government makes towards meeting its objectives Budgeting for service delivery