Improving Budgetary Outcomes July 6, 2000

SOUND BUDGETING 1. Sound fiscal policy/discipline 2. Resources allocated to strategic priorities Predictable funding Predictable policy 3. High quality services delivered at least cost

Supporting and Demanding Performance Credible Credible Demanding Budget Rules Performance 3. High quality services delivered at least cost

Some Principles Transparency and accountability Comprehensiveness of budget Predictability of resources & policies Flexibility Contestability Existence and sharing of information

Fragmentation/Lack of Comprehensiveness Across: Policy Making, Planning, Budgeting Fiscal activities Types of expenditure Sources of funds Time Inputs, outputs and outcomes

POINTS OF INTERVENTION Influencing Policy Monitoring implementation/service delivery Assessing whether institutional arrangements require that poverty analysis be central to decision making New policy Review of ongoing policy Demanding a credible budget

Enabling Environment for Public Sector Link Policy, Planning, Budgeting Restrain decision making: affordability cost, expected results evaluate Forum within which policies compete Capacity and willingness to reprioritize and reallocate.

A Contract for Performance The Center More predictable funding More predictable policy Rules and practices that support and demand efficient resource use Leave management decisions to line managers

A Contract for Performance The Line Living within budget Clear sector strategies Using resources efficiently and effectively Reporting on resource use