1. Survey Results PEMPAL Budget Community of Practice Tbilisi, Georgia

2. The BCOP Survey 11 countries responded Both great agreement (5-11) And divergence (4-0) This professional sharing of experience is the essence of PEMPAL

3. Survey Results: Questions 1. Has your country started to use program budgeting? 2. What year did your country begin to implement program budgeting? 3. Who initiated of proposed the program system and what reason was given? a. proposed by Ministry or Minister of Finance b. proposed by another unit of public administration or Parliament

4. Survey Results: Response Country SloveniaSlovakia UkraineArmeniaUzbekistanMoldova 1 Yes 2 20012000 200220012003 3 See Comment a xx xxxx b x

5. Survey Results: Responses Total 10 0 1 2 5 0

6. Survey Results: Comments Slovenia 4. Programs are established according… 5. Functional classification is used… 7. Program classification was used … Slovakia 10. NUMBER OF GOALS WAS LIMITED TO … 12. SLOVAK NATIONAL AUDIT OFFICE IS…

7. Questions/statements that might be generated: Why did Hasobonia say “yes” on Question 6.b.? Why are we the only one saying “yes” on Question 10.k.? Can we use these as benchmarks? Do we want to? I don’t agree with some responses for our country.

8. In Draft Mission Statements for BCOP Reference to working with OECD countries to identify good practices in Program Budgeting

9. OECD Meeting on Performance Budgeting – June 11-12, 2007 Performance Budgeting reform: to improve decision making by providing more concrete information on what is accomplished with the money

10. OECD Definition Form of budgeting that is based on a relationship between allocation and results Beyond this there is little agreement on: Type of information At what stage of budgeting it should be introduced How to relate performance information and resource allocation

11. Important Factors to Keep in Mind There is no single model – countries need to adapt to relevant political and institutional contexts Whole-of-government planning and reporting framework is important Performance Information should be integrated into the budget process

12. Important Factors to Keep in Mind Systems that automatically link performance results to resource allocation should be avoided – may distort incentives It is often difficult to identify causes of poor performance Must update output data continuously Evaluations and assessments should be independent

13. Important Factors to Keep in Mind It is vital to have support of political and administrative leaders Staff capacity at the MOF and spending ministries is critical Reforms must adapt to evolving circumstances There must be incentives for civil servants and politicians to change behavior

14. 3 Categories of Performance Budgeting Presentational: Simple display of allocation and results (targeted or realized) Purpose: accountability Performance-informed: Performance information along with other factors is taken into account Purpose: planning and accountability

15. 3 Categories of Performance Budgeting Direct/formula: Funding is based on results achieved Purpose: resource allocation and accountability [Note: Used only in specific sectors in a limited number of OECD countries. Acts like a contract]

16. Managing Public Expenditure A Reference Book for Transition Countries Edited by Richard Allen and Daniel Tommasi PERFORMANCE BUDGETING IN OECD COUNTRIES(PRELIMINARY VERSION)ANNUAL MEETING OF THE OECD SBO NETWORK ON PERFORMANCE AND RESULTS WASHINGTON DC 11-12 JUNE 2007