Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: The Changing Role of the Central Budget Office Abstract: The traditional role of the central budget office is incompatible with the management reforms enfolding in various OECD Member countries. These reforms are grounded on the principle that managers must be permitted to run their operations without undue outside interference. The logic of reform is that only when managers are free to use money and other organisational resources within agreed budgets can they be responsible for the organisation’s successes or failures. In countries where a culture of reform has taken hold, there is consensus that halfway measures do not suffice, that managers either are free to act or are not. It is not a matter of relaxing one or another restriction, but of reshaping the operations of public institutions and the behaviour of those who work in them. The budget process is one of the main arenas in which the machinery of government is undergoing fundamental transformation. Journal: OECD Journal on Budgeting Year: 2001 Pages: 9-26 Volume: 1 Issue: 1 Handle: RePEc:oec:govkaa:5KZPFVTM1TJK Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Title: Budgeting in Sweden Abstract: From enjoying the largest budget surpluses of any OECD Member country in the late 1980s, Sweden went into having the largest budget deficits of any OECD Member country in the early 1990s, which were accompanied by a massive increase in government debt. In a span of just five years, the level of debt had nearly doubled. However, by the late 1990s, the budget had been brought back to balance and Sweden is now enjoying significant surpluses again. Journal: OECD Journal on Budgeting Year: 2001 Pages: 27-57 Volume: 1 Issue: 1 Handle: RePEc:oec:govkaa:5KZPFVTLM48S Template-type: ReDIF-Article 1.0 Author-Name: Martin Cave Title: Voucher Programmes and their Role in Distributing Public Services Abstract: This paper is concerned with a number of conceptual and practical issues associated with the use of vouchers to distribute public services. Section 1 proposes a definition of vouchers and considers the position which voucher distribution occupies in the spectrum of possible mechanisms for the production and distribution of public services; this leads into a discussion of the objectives which voucher distribution might promote. Section 2 classifies the contexts in which vouchers might be applied and types of voucher systems. This permits a preliminary mapping of combinations of policy objectives and characteristics of the public service in question onto alternative forms of voucher distribution. Section 3 provides an illustrative review of the use of vouchers in the distribution of public services. Many of the examples discussed are in the field of education, where discussion of or use of vouchers is most developed, but experience of other public services is included where it is available. Section 4 contains conclusions. Journal: OECD Journal on Budgeting Year: 2001 Pages: 59-88 Volume: 1 Issue: 1 Handle: RePEc:oec:govkaa:5KZPFVTKMF46 Template-type: ReDIF-Article 1.0 Author-Name: Nicholas Gruen Title: Greater Independence for Fiscal Institutions Abstract: This paper seeks to outline the thinking behind a proposal contained in a recently released discussion paper by the Business Council of Australia (BCA). The BCA is Australia’s leading business body. It comprises the chief executive officers of most of Australia’s largest companies. The BCA’s paper was entitled Avoiding boom/bust: macroeconomic reform for a globalised economy (1999). A major section of the paper was devoted to exploring the idea of “re-engineering” fiscal policy. Journal: OECD Journal on Budgeting Year: 2001 Pages: 89-115 Volume: 1 Issue: 1 Handle: RePEc:oec:govkaa:5KZPFVTJ6VJL Template-type: ReDIF-Article 1.0 Author-Name: Joaquin Vial Ruiz-Tagle Author-Name: Francisca Castro Title: The Chilean Pension System Abstract: The introduction in the early 1980s of a privately managed pension system in Chile, based on individual capital accounts, has attracted world-wide attention. This reform – as well as other market oriented structural changes – and the significant improvement in Chilean economic performance has led many observers to conclude a direct link, especially through the rise in private domestic savings generated through the new pension system. Journal: OECD Journal on Budgeting Year: 2001 Pages: 117-137 Volume: 1 Issue: 1 Handle: RePEc:oec:govkaa:5KZPFVTHB7R0 Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Title: Budgeting in Canada Abstract: Canada’s level of indebtedness, as a percentage of GDP, increased from a level lower than the average for OECD Member countries in the early 1980s to a high of 97.6% in 1995. This was a level of debt exceeded only by Italy among G7 nations and Belgium and Greece among the wider OECD community. Fiscal management reached a breaking point in 1994. It was recognised that the fiscal situation had reached crisis proportions and strong corrective measures were needed. Today, Canada is enjoying a budget surplus and is repaying debt. This paper surveys these developments. Journal: OECD Journal on Budgeting Year: 2001 Pages: 39-82 Volume: 1 Issue: 2 Handle: RePEc:oec:govkaa:5KZPGB3XD1XX Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Re-Allocation: Aligning Political Priorities and Budgetary Funding Abstract: The following five articles contain reports on national practices in five Member countries for reallocating budgetary resources. The five countries are Finland, Germany, Korea, Switzerland and the United States. The reports were presented at a special OECD meeting in the year 2000 where senior officials from Member countries met to discuss these issues. Journal: OECD Journal on Budgeting Year: 2001 Pages: 83-140 Volume: 1 Issue: 2 Handle: RePEc:oec:govkaa:5KZPGB3X35LS Template-type: ReDIF-Article 1.0 Author-Name: Michael Keating Title: Public Management Reform and Economic and Social Development Abstract: Most OECD Member countries have sought to renew their systems and structures of public management in the last 10-15 years. Some started earlier than others and the emphasis will vary among Member countries according to their historic traditions and institutions. There is no single best model of public management, but what stands out most clearly is the extent to which countries have pursued and are pursuing broadly common approaches to public management reform. This is most probably because countries have been responding to essentially similar pressures to reform. Journal: OECD Journal on Budgeting Year: 2001 Pages: 141-212 Volume: 1 Issue: 2 Handle: RePEc:oec:govkaa:5KZPGB3WSG5K Template-type: ReDIF-Article 1.0 Author-Name: Michael Spackman Title: Public Investment and Discounting in European Union Member States Abstract: The formal procedures of public expenditure management vary widely within the European Union. They depend especially on the relative status of institutions. In most member states, operations are delegated to spending ministries or other spending units which have considerable freedom (within tough overall budget constraints) to decide how they meet their objectives; but there are wide variations in the degree of delegation and the incentives for efficiency. Public enterprises, similarly, are seen in some countries as an arm of the public sector and in others as essentially commercial bodies. Some member states have federal structures. Nearly all have complex procedures for funding local municipalities or counties. They differ in their relationships between government and Parliament. They also differ in technical procedures such as budgetary timescales, and methods of accounting for expenditure. Journal: OECD Journal on Budgeting Year: 2001 Pages: 213-260 Volume: 1 Issue: 2 Handle: RePEc:oec:govkaa:5KZPGB3W0N8X Template-type: ReDIF-Article 1.0 Author-Name: Christopher Pollitt Title: Integrating Financial Management and Performance Management Abstract: The objective of this paper is to assess mechanisms to improve resource planning and allocation by integrating financial and budgetary management with performance management. Journal: OECD Journal on Budgeting Year: 2001 Pages: 7-37 Volume: 1 Issue: 2 Handle: RePEc:oec:govkaa:5KZPGB3Z6NZP Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: OECD Best Practices for Budget Transparency Abstract: The Best Practices are designed as a reference tool for Member and non-member countries to use in order to increase the degree of budget transparency in their respective countries. The Best Practices are organised around specific reports for presentational reasons only. It is recognised that different countries will have different reporting regimes and may have different areas of emphasis for transparency. The Best Practices are based on different Member countries’ experiences in each area. It should be stressed that the Best Practices are not meant to constitute a formal "standard" for budget transparency. Journal: OECD Journal on Budgeting Year: 2002 Pages: 7-14 Volume: 1 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2K6TNX Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Can National Legislatures Regain an Effective Voice in Budget Policy? Abstract: Two contemporary developments are buffeting legislative work on the budget. One is the drive to discipline public finance by constraining the fiscal aggregates; the other is the effort to enlarge the legislature’s role in revenue and spending policy. Whether these trends turn out to be complementary or contradictory will shape the budgetary role of national legislatures in the years ahead. One scenario is for the legislature to reinforce fiscal discipline by taking responsibility for the budget’s totals; another is for it to undermine discipline by bombarding the budget submitted by the government with legislative amendments that trim revenues or boost expenditures... Journal: OECD Journal on Budgeting Year: 2002 Pages: 15-42 Volume: 1 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2K6TLR Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Author-Name: Jens Kromann Kristensen Title: Budgeting in the Netherlands Abstract: The budget formulation process in the Netherlands operates in two very distinct phases. The first phase occurs when a new government takes power and it establishes its overall budgetary policy for its term of office. This is done in explicit terms, rather than being a general statement of intent. The second phase then occurs annually, as the government’s overall budgetary policy is translated into operational terms for all of the government’s various activities... Journal: OECD Journal on Budgeting Year: 2002 Pages: 43-80 Volume: 1 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2K6TKD Template-type: ReDIF-Article 1.0 Author-Name: Ludger Schuknecht Title: The Implementation of the Stability and Growth Pact Abstract: This article explains the "new" institutional framework for fiscal policy-making in the EU countries agreed first in the Maastricht Treaty and later complemented by the Stability and Growth Pact. This framework introduces a – probably unprecedented – supra-national institutional framework for national fiscal policies. It also serves as a basis for monitoring and assessing fiscal policies and their compatibility with price stability-oriented monetary policy making. Journal: OECD Journal on Budgeting Year: 2002 Pages: 81-116 Volume: 1 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2K6TJC Template-type: ReDIF-Article 1.0 Author-Name: Murray Petrie Title: A Framework for Public Sector Performance Contracting Abstract: OECD Member countries have grown increasingly interested in the use of contract type arrangements in the 1990s as a means of improving public sector performance. This interest reflects a number of broad challenges to traditional governance structures. These challenges include the demand for greater efficiency through highly adaptive and flexible public sectors and the increasing pressure of accumulated public debt and fiscal deficits. "Governments must strive to do things better, with fewer resources, and, above all, differently." Journal: OECD Journal on Budgeting Year: 2002 Pages: 117-153 Volume: 1 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2K6THK Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: The OECD Budgeting Database Abstract: The following series of tables contain information on parliamentary budget procedures in OECD Member countries. They were compiled from information submitted by Member countries to the OECD Secretariat. Note that per cent totals at the bottom of each table may not add up to 100% due to rounding, and in a few circumstances when multiple answers are allowed. Journal: OECD Journal on Budgeting Year: 2002 Pages: 155-171 Volume: 1 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2K6TG6 Template-type: ReDIF-Article 1.0 Author-Name: Jens Kromann Kristensen Author-Name: Walter Groszyk Author-Name: Bernd Bühler Title: Outcome-focused Management and Budgeting Abstract: Over the last two decades, the focus of public sector budgeting and management in most OECD Member countries has changed from inputs towards outputs. While important elements of an input-based management approach remain, many managers are now more often judged by how their programmes perform rather than by how well they adhere to administrative controls and procedures, or how successful they are in obtaining resources for their programme. The jury is still out as to the details of actual gains and losses connected to this change, but generally it is the view of central budgeting and management institutions that this change in focus has enhanced the quality of management and increased programme effectiveness and efficiency. Journal: OECD Journal on Budgeting Year: 2002 Pages: 7-34 Volume: 1 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2K6T46 Template-type: ReDIF-Article 1.0 Author-Name: Matthew Chan Author-Name: Mark Nizette Author-Name: Lisa La Rance Author-Name: Charles Broughton Author-Name: Derek Russell Title: Australia Abstract: The Commonwealth Government of Australia introduced an accrual-based outcomes and outputs budgeting and reporting framework in 1999-2000. The framework seeks to focus public-sector decision-making and accountability on three core issues: • Outcomes: What influence the government (of the day) wishes to have on the community; • Outputs and administered items:1 How the government wishes to achieve that influence; and • Performance indicators: How the government and the community know whether that influence is being achieved in an efficient and effective way. Journal: OECD Journal on Budgeting Year: 2002 Pages: 35-69 Volume: 1 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2K6T34 Template-type: ReDIF-Article 1.0 Author-Name: Hironobu Yamanaka Title: The Japanese Attempt at Reinforcing the Policy Management Cycle through Policy Evaluation Abstract: This article describes the introduction of a government-wide policy evaluation system that is underway in Japan, exemplified by the policy appraisal-evaluation system of the Ministry of Economy, Trade and Industry (METI, the former Ministry of International Trade and Industry). The initiative in METI was started in December 1999, preceding the implementation of a government-wide system. "Policy evaluation" as a term is not limited, in this context, to ex post evaluation but includes ex ante assessment and performance measurement as well. Information as to what extent and how outcome measures are used under the systems is also provided. Journal: OECD Journal on Budgeting Year: 2002 Pages: 71-83 Volume: 1 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2K6T21 Template-type: ReDIF-Article 1.0 Author-Name: Andrew Kibblewhite Author-Name: Chris Ussher Title: Outcome-focused Management in New Zealand Abstract: This paper discusses the uses of outcomes in public sector management in New Zealand. It begins by describing the overall public management system within which government departments operate, and how outcomes are used within this system. It then outlines some work that is underway to improve the focus on outcomes, and the way that outcomes are used within the system. The remainder of the paper is a series of case studies of innovative uses of outcomes in the New Zealand state sector. Journal: OECD Journal on Budgeting Year: 2002 Pages: 85-109 Volume: 1 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2K6T0N Template-type: ReDIF-Article 1.0 Author-Name: Kevin Ellis Author-Name: Stephen Mitchell Title: Outcome-focused Management in the United Kingdom Abstract: In 1998, the Government of the United Kingdom conducted a Comprehensive Spending Review which examined the resources allocated to each area of spending, and for the first time decided on and published the service improvements and reforms required in return for the resources allocated to departments’ expenditure programmes. These requirements were set out in Public Service Agreements (PSAs) for every central government department published in December 1998.  Each PSA sets out the aim and objectives of each department as well as performance targets, including measures of operations and outcomes. The government’s second spending review in 2000 resulted in revised PSAs, and excluded those expenditure programmes for which the Scottish Parliament and the Welsh Assembly have executive responsibility following the devolved constitutional arrangements. Journal: OECD Journal on Budgeting Year: 2002 Pages: 111-128 Volume: 1 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2K6SXS Template-type: ReDIF-Article 1.0 Author-Name: Walter Groszyk Title: Outcome-focused Management in the United States Abstract: The Government Performance and Results Act of 1993 (GPRA, the Results Act) established a performance management framework for federal departments and agencies. The framework consists of agency Strategic Plans, Annual Performance Plans and Annual Performance Reports. Additionally, the Director of the Office of Management and Budget (OMB) annually prepares a Government-wide Performance Plan. Approximately 100 Cabinet departments, independent agencies and government corporations prepare these plans and reports. These departments and agencies comprise nearly the entire Executive branch of government. (The Central Intelligence Agency is statutorily exempted, and OMB has exempted about 15 very small agencies from having to comply with GPRA requirements.) Journal: OECD Journal on Budgeting Year: 2002 Pages: 129-150 Volume: 1 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2K6SWF Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Agencies in search of principles Abstract: Why agencies, and why now? The proliferation of agencies is not accidental; it entails much more than merely rearranging the organisational map of government. There is a logic to the popularity of agencies that sheds light on the current state of democratic governance. Every government that embraces agencies does so for its own reasons, but as diverse as they may appear to be, all the reasons are the same. Some governments set up agencies to empower managers, others to emphasise service delivery, still others to evade personnel controls or other administrative constraints. As different as these motives may be, all attest to the belief that the inherited department-centred model no longer satisfies the organisational needs of government. Journal: OECD Journal on Budgeting Year: 2002 Pages: 7-26 Volume: 2 Issue: 1 Handle: RePEc:oec:govkaa:5LMQCR2K3DKJ Template-type: ReDIF-Article 1.0 Author-Name: Derek Gill Title: Signposting the zoo: From Agencification to a More Principled Choice of Government Organisational Forms Abstract: This paper originated with the discussions at the experts meetings at the OECD for PUMA’s Distributed Public Governance (Agencies and Authorities) Project. These suggested that the quite structured systems of classification of government organisations in continental countries like Germany could equally be applied to the range of similar bodies in English-speaking countries like New Zealand. Cross-country dialogue has been hampered by the lack of a common language and classification to compare agencies and authorities across jurisdictions. In particular the term "agency" has quite different, but quite precise, legally defined meanings in different jurisdictions. Journal: OECD Journal on Budgeting Year: 2002 Pages: 27-79 Volume: 2 Issue: 1 Handle: RePEc:oec:govkaa:5LMQCR2K3DHC Template-type: ReDIF-Article 1.0 Author-Name: Tom Fitzpatrick Author-Name: Toby Fyfe Title: Distributed Public Governance: Agencies, Authorities and Other Autonomous Bodies in Canada Abstract: Canada’s experience in creating new organisational forms for service delivery is a product of its distinct culture and its political form, federalism. In 1867, Canada adopted a federal form of government. Because the new country included diverse linguistic, cultural and regional communities, federalism was seen as a compromise between full integration of the independent colonies and the status quo.  Its champions thought that it would unite different communities under a common government for common purposes while preserving and respecting their differences and diversity through the creation of separate regional governments. Journal: OECD Journal on Budgeting Year: 2002 Pages: 81-102 Volume: 2 Issue: 1 Handle: RePEc:oec:govkaa:5LMQCR2K3DG0 Template-type: ReDIF-Article 1.0 Author-Name: Ronald van Oosteroom Title: Distributed Public Governance: Agencies, Authorities and Other Autonomous Bodies in the Netherlands Abstract: In the context of English-speaking countries, the term agency is used as an umbrella concept for different forms of what is called in the Dutch context "privatisation" (i.e. devolution and delegation of power to more autonomous bodies). To assist in understanding the Dutch situation, this paper will discuss first a conceptual framework which runs as a thread through this chapter... Journal: OECD Journal on Budgeting Year: 2002 Pages: 103-120 Volume: 2 Issue: 1 Handle: RePEc:oec:govkaa:5LMQCR2K3DF7 Template-type: ReDIF-Article 1.0 Author-Name: Miroslav Beblavý Title: Understanding the waves of agencification and the governance problems they have raised in Central and Eastern European Countries Abstract: The goal of this paper is to provide tools to understand and analyse waves of "agencification" in transition countries of Central and Eastern Europe. Agencification is a shorthand for the process of delegation and devolution, in which more autonomy, particularly in personnel and financial issues, is granted to public bodies, which either remain legally part of the state or acquire their own legal personality. It can also mean creating or moving functions to bodies, which are subsidiary or separate from ministries/departments (Gill, 2002). In transition countries, most public organisations inherited a legal personality already from communism, with consequences which are both procedural and substantive. Therefore, agencification in transition countries usually means the creation of new autonomous bodies for new functions or a significant increase in the autonomy of existing legally separate bodies either on an individual or a collective basis. Journal: OECD Journal on Budgeting Year: 2002 Pages: 121-139 Volume: 2 Issue: 1 Handle: RePEc:oec:govkaa:5LMQCR2K3DD4 Template-type: ReDIF-Article 1.0 Author-Name: Daniel Tarschys Title: Time horizons in budgeting Abstract: Public policy-makers operate with all measures of time horizon. They make short-term decisions as well as investments intended to benefit several generations. Though popular myth and public choice theory concur that politicians have their eyes fixed on nothing but the next election, there is a great deal of evidence to the contrary. As a rule there is a blend of time-frames and perspectives in the same actor. Attention leaps back and forth between the proximate and the distant. In their time orientation, elected officials share the ambivalence and volatility of their electorates. “A week is a long time in politics”, Harold Wilson once famously claimed when accused of inconsistency... Journal: OECD Journal on Budgeting Year: 2003 Pages: 77-103 Volume: 2 Issue: 2 Handle: RePEc:oec:govkaa:5LMQCR2K19BR Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Title: Investing in private financial assets to address longer-term needs Abstract: In preparation for the 2002 meeting of the OECD Working Party of Senior Budget Officials, an ad hoc Meeting on Investing in Private Financial Assets to Address Longer Term Needs was held in Paris on 4-5 April 2002. Eight countries participated in the meeting with case studies of their national experiences: Australia, Canada, Chile, the Netherlands, New Zealand, Norway, the United Kingdom and the United States. France attended the meeting as well. The meeting was chaired by Mr. Paul Posner, Managing Director, General Accounting Office, United States... Journal: OECD Journal on Budgeting Year: 2003 Pages: 105-117 Volume: 2 Issue: 2 Handle: RePEc:oec:govkaa:5LMQCR2K199P Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Author-Name: Jens Kromann Kristensen Author-Name: Michael Ruffner Title: Budgeting in Finland Abstract: The budget is the most fundamental and important document of governments. It is the key economic document in that it allocates a significant share of a nation’s gross domestic product, over half in some OECD member countries. It is the key program policy document in that governments establish their policy priorities in concrete terms in the budget through the allocation of funding. It is the key management document in that the basic operational aspects of government ministries and agencies are established in the context of the budget. Furthermore, the budget provides the basic architecture for overall decision-making and accountability in government. This architectural design has a significant impact on overall government performance. Journal: OECD Journal on Budgeting Year: 2003 Pages: 119-152 Volume: 2 Issue: 2 Handle: RePEc:oec:govkaa:5LMQCR2K198W Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Does budgeting have a future? Abstract: Budgeting is a work in progress. The process is never quite settled because those who manage it are never fully satisfied. To budget is to decide on the basis of inadequate information, often without secure knowledge of how past appropriations were used or of what was accomplished, or of the results that new allocations may produce. Most people involved in budgeting have experienced the frustration of having their preferences crowded out by the built-in cost of past actions. Budgeting is a deadline-driven process, in which sub-optimal decisions often are the norm because government does not have the option of making no decisions. When one cycle ends, the next begins, usually with little respite and along the same path that was trod the year before. The routines of budgeting dull conflict, but they also are a breeding ground for frustration. Journal: OECD Journal on Budgeting Year: 2003 Pages: 7-48 Volume: 2 Issue: 2 Handle: RePEc:oec:govkaa:5LMQCR2K24XN Template-type: ReDIF-Article 1.0 Author-Name: Ian Ball Title: Modern financial management practices Abstract: The paper highlights two incentive regimes which have been used by governments to improve their financial management systems: the capital charge regime to improve asset management and the interest rate regime to improve cash management... Journal: OECD Journal on Budgeting Year: 2003 Pages: 49-76 Volume: 2 Issue: 2 Handle: RePEc:oec:govkaa:5LMQCR2K19D4 Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Opportunity, strategy and tactics in reforming public management Abstract: Every successful public management reform is an amalgam of opportunity, strategy and tactics. Opportunities are country-specific conditions that facilitate some reforms and retard others; strategies are policies and actions that set goals for government and for the tasks to be undertaken in implementing wanted change; tactics are the methods used to mobilise support for and overcome obstacles to reform.... Journal: OECD Journal on Budgeting Year: 2003 Pages: 7-34 Volume: 2 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2K40TD Template-type: ReDIF-Article 1.0 Author-Name: Mario Marcel Author-Name: Marcelo Tokman Title: Building a consensus for fiscal reform: The Chilean case Abstract: The financial crisis that started in Asia in 1997 brought up a renewed concern over public finances in emerging economies. As most observers failed to detect creeping fiscal disequilibria, large public contingent liabilities, vulnerable asset-liability structures and time inconsistencies of fiscal policy, international financial institutions committed themselves to promote higher transparency and efficiency in the management of public finances. This has resulted in a stream of transparency codes, guidelines and best practice reports over the last couple of years that intend to prevent such failures in the future... Journal: OECD Journal on Budgeting Year: 2003 Pages: 35-55 Volume: 2 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2K3Z26 Template-type: ReDIF-Article 1.0 Author-Name: Cesar Cordova-Novion Author-Name: Deirdre Hanlon Title: Regulatory governance: Improving the institutional basis for sectoral regulators Abstract: In recent years, many countries, both within the OECD and beyond, have reappraised their regulatory policy framework to determine whether it meets the challenges of the new regulatory environment. For utility markets previously characterised by stability and slowness to change, these challenges are arising from rapidly developing technologies, converging industries, the internationalisation of markets, and more informed and discerning consumers... Journal: OECD Journal on Budgeting Year: 2003 Pages: 57-118 Volume: 2 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2K3Z0T Template-type: ReDIF-Article 1.0 Author-Name: Jack Diamond Title: The new Russian budget system: Critical assessment and future reform agenda Abstract: One of the major challenges faced by transitional economies has been to adjust institutions that were designed to function in a planning environment to function in an increasingly market-oriented environment. One of the most important of these institutional reforms has been the restructuring of the budget system. The latter should be interpreted quite widely to encompass the institutional framework as well as the administrative procedures that determine the means whereby resources are transferred to government, how the use of these resources is prioritised and directed to agreed policy objectives, and then subsequently managed, controlled, monitored and reported on. Such systems must be defined in terms of a legal framework... Journal: OECD Journal on Budgeting Year: 2003 Pages: 119-147 Volume: 2 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2K3XXN Template-type: ReDIF-Article 1.0 Author-Name: Denis Audet Title: Government procurement: A synthesis report Abstract: Governments are significant purchasers of goods and services and these markets represent huge opportunities for international trade. Measuring government procurement for a large number of countries, in a consistent manner, is not a trivial task and careful attention must be paid to ensure that national data is gathered on the basis of harmonised procedures in all countries covered. Quantifying the size of government procurement markets becomes even more complicated when attempts are made at distinguishing procurement between government levels (central versus sub-central), or by types of expenditure (consumption versus investment), or at measuring the share of procurement that is potentially opened up to international trade (contestable). The latter indicator is meant to capture tradable purchases and excludes two categories of government purchases that are assumed to be nontradable, i.e. the compensation of government employees and defence-related expenditure... Journal: OECD Journal on Budgeting Year: 2003 Pages: 149-194 Volume: 2 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2K3XWL Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Title: Budget reform in OECD member countries: Common trends Abstract: From the early 1990s, the fiscal position of OECD member countries improved steadily each year, from a deficit of 5% of GDP for member countries as whole in 1993 to a perfect balance in the year 2000, i.e. neither a deficit nor a surplus. In 2001, member countries experienced a deficit of 1% of GDP. Table 1 depicts the general government financial balances of selected OECD member countries. This goes to show the historical pattern in member countries: achieving fiscal consolidation is a slow process and successes in fiscal consolidation can quickly dissipate. A very short time ago, several OECD member countries believed that they were on a long-term track for fiscal surpluses; the era of deficits had been overcome. This did not turn out to be the case; surpluses turned out to be a very short-lived phenomenon for many countries. Journal: OECD Journal on Budgeting Year: 2003 Pages: 7-25 Volume: 2 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2K18XW Template-type: ReDIF-Article 1.0 Author-Name: Aaron Wildavsky Title: Controlling public expenditure: The theory of expenditure limitation Abstract: What don’t I mean by expenditure limitation? This paper is not about why governments should chose to limit spending. If governments wish to increase spending, that is obviously their prerogative. Moreover, they are, on the evidence, very good at it. Governments need no advice on doing what comes naturally. There need be no solution when there is perceived to be no problem… Journal: OECD Journal on Budgeting Year: 2003 Pages: 27-47 Volume: 2 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2K18WJ Template-type: ReDIF-Article 1.0 Author-Name: D. Bouley Author-Name: J. Fournel Author-Name: Luc Leruth Title: How do treasury systems operate in sub-Saharan francophone Africa? Abstract: Treasury systems in sub-Saharan Francophone African countries share many features with the French public expenditure management system of the 1960s on which they were modelled. However, in a different economic and institutional environment, key elements of this framework have evolved in unexpected, unwelcome directions. This paper critically examines two main features of the French system in the sub-Saharan Francophone African context: the strict separation between the person ordering payment and the one disbursing funds, and the centralisation of funds in the treasury. This examination calls attention to – and suggests remedies for – the specific flaws that have evolved from the traditional framework. Journal: OECD Journal on Budgeting Year: 2003 Pages: 49-83 Volume: 2 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2K18VH Template-type: ReDIF-Article 1.0 Author-Name: Daniel Guttman Title: Privatisation, public purpose and private service: The twentieth century culture of contracting out and the evolving law of diffused sovereignty Abstract: The 1992 book Reinventing Government, the template for the identically named Clinton-Gore initiative, identified 36 alternatives to “standard delivery service”. Surprisingly, the authors wrote, the federal government already relies on many of these alternatives. Similarly, the basic tools identified by the Reagan Commission on Privatisation – vouchers, sale of government assets, and contracting – were not new... Journal: OECD Journal on Budgeting Year: 2003 Pages: 85-154 Volume: 2 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2K18TD Template-type: ReDIF-Article 1.0 Author-Name: Alex Matheson Author-Name: Hae-Sang Kwon Title: Public Sector Modernisation: A New Agenda Abstract: This paper argues that if governments are to adapt successfully to the changing needs of their society, they require better analytical and empirical tools, and more sophisticated strategies for change than OECD member countries have generally had to date.... Journal: OECD Journal on Budgeting Year: 2003 Pages: 7-23 Volume: 3 Issue: 1 Handle: RePEc:oec:govkaa:5LMQCR2JJ48T Template-type: ReDIF-Article 1.0 Author-Name: Frédéric Bouder Author-Name: Elodie Beth Title: Improving Government Decision-making Practices for Risk Management Abstract: Conventional risks, such as environmental degradation, tend to take on new dimensions due to increasingly extreme weather conditions, growing geographical concentration of populations and wealth, etc. Emerging issues, such as new diseases, biotechnologies, bio-terrorism, are occurring, many of which are characterised by extreme uncertainty and the possibility of extensive harm. Government capacity to adjust to traditional and new risks seems increasingly challenged by modern complexities, while at the same time people seem more ready to accept risk resulting from “private” decisions rather than those resulting from “public” decisions (for example most consumers seem ready to assume the uncertainty resulting from the use of cellular phones or pharmaceuticals). Journal: OECD Journal on Budgeting Year: 2003 Pages: 25-42 Volume: 3 Issue: 1 Handle: RePEc:oec:govkaa:5LMQCR2JJ47G Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Title: Accrual Accounting and Budgeting: Key Issues and Recent Developments Abstract: Cash and accruals represent two end points on a spectrum of possible accounting and budgeting bases. The cash end of the spectrum has traditionally been applied by OECD member countries for their public sector activities. In recent years there has been a major trend towards the accruals end of the spectrum in member countries. About half of member countries have adopted accruals to one degree or another. The tables at the end of this paper provide details on practices in individual member countries. Several general comments can be made about the use of accruals in member countries... Journal: OECD Journal on Budgeting Year: 2003 Pages: 43-59 Volume: 3 Issue: 1 Handle: RePEc:oec:govkaa:5LMQCR2JJ46D Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: The Case for e-government: Excerpts from the OECD Report “the e-government Imperative” Abstract: The OECD E-Government Project takes as its basic premise that egovernment provides the capacity to reform the way public administrations operate and can result in more customer-focused, responsive government. This requires overcoming major challenges. The forthcoming OECD report “The E-Government Imperative” examines the potential and impact of egovernment and the changes required to maximise its benefits. This article is based on the forthcoming publication, and examines the case for egovernment as well as the budgetary barriers that must be overcome in order to successfully implement e-government... Journal: OECD Journal on Budgeting Year: 2003 Pages: 61-96 Volume: 3 Issue: 1 Handle: RePEc:oec:govkaa:5LMQCR2JJ45L Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Author-Name: Chiara Goretti Author-Name: Jens Kromann Kristensen Title: Budgeting in Brazil Abstract: During his September 2002 visit to OECD Headquarters in Paris, Mr. Guilherme DIAS, the Minister of Planning, Budget and Management, requested the OECD to carry out a review of the Brazilian budgeting system in a similar fashion as it does for its member countries.The OECD responded positively to this request, recognising that Brazil is an established observer of the OECD Working Party of Senior Budget Officials and a key partner in the OECD’s overall programme of co-operation with nonmembers. Journal: OECD Journal on Budgeting Year: 2003 Pages: 97-131 Volume: 3 Issue: 1 Handle: RePEc:oec:govkaa:5LMQCR2JJ447 Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: The Performing State: Reflection on an Idea Whose Time Has Come but Whose Implementation Has Not Abstract: The contemporary nation-state exists to perform – to provide financial assistance, public services and other benefits to its people. How well the government performs influences the economic and social well-being of citizens, the mindset that voters take into the election booth, the programmes and behaviour of politicians and bureaucrats, and the relationship between government and the governed. Delivering services and writing cheques are not the sole functions of the modern state, for it still has traditional watchman responsibilities such as defending the country against external threat and maintaining domestic health, safety and order. Although the old tasks are essential, in most nation-states they have been surpassed in the sentiments of citizens and in the fiscal accounts of government by a vastly broader array of public services than were provided generations ago. Government not only does more than it once did, it carries out many tasks differently. One of the themes of this paper is that a performing state is inherently a state in transition, adapting to changing conditions and opportunities. Performance is not a static measure, but one that requires ongoing feedback from situations and results to policies and action. Among the many transformations that the performing state has experienced is in its role as unifier of the people through symbols and actions that forge a common national identity. As the provision of services has gained prominence, diversity has gained ground over uniformity because citizens differ in the services they want or need. The performing state must serve the people, even if doing so requires that it serve them differently... Journal: OECD Journal on Budgeting Year: 2003 Pages: 71-103 Volume: 3 Issue: 2 Handle: RePEc:oec:govkaa:5LMQCR2JGLKG Template-type: ReDIF-Article 1.0 Author-Name: Hideaki Tanaka Title: Fiscal Consolidation and Medium-term Fiscal Planning in Japan Abstract: The macroeconomic policy in Japan in the 1990s swung from fiscal expansion to fiscal consolidation and conversely. The efforts to restore soundness of public finance culminated in the Fiscal Structural Reform Act of 1997, which articulated several fiscal targets in the medium-term perspective. The act was however suspended after only a year due to economic slowdown, which threatened politicians with the possibility that fiscal consolidation might deteriorate the Japanese economy further. During the past decade, a number of economic packages to stimulate the return of the economy to a self-sustaining growth path totalled over 130 trillion yen in terms of project cost base.2 However, the Japanese economy has not recovered. As a result, these discretionary fiscal policies made the fiscal balance dramatically worse and accumulated government debt to over 140% of GDP in 2002. The new government under Prime Minister J. Koizumi was formed in April 2001. The government put structural reforms at the top of the agenda and included the fiscal consolidation plan to achieve a primary balance surplus in the early 2010s. While Japan is moving into an ageing society more rapidly than other countries, there is increasing pressure to restore public finances over the medium term. However, downside risk in the Japanese economy has been increasing since the middle of 2002 mainly due to serious deflationary pressure. Halting deflation is urgent in the short term for restoring economic growth. Japan is thus faced with considerable difficulties in achieving both the short-term objective of economic recovery and the medium-term objective of fiscal consolidation. In addition, Japan is in the extraordinary situation where there has been little incentive to enforce fiscal consolidation because huge domestic savings can finance huge government deficit, keeping the coupon rate of a ten-year Japanese Government bond to less than 1%... Journal: OECD Journal on Budgeting Year: 2003 Pages: 105-137 Volume: 3 Issue: 2 Handle: RePEc:oec:govkaa:5LMQCR2JGLHL Template-type: ReDIF-Article 1.0 Author-Name: Dan Crippen Title: Countering Uncertainty in Budget Forecasts Abstract: Federal budget procedures in the United States require forecasts and projections over several distinct periods of time: short term (18-24 months ahead), medium term (both 5- and 10-year horizons), and long term (as much as 75 years in the future). In the United States, the intermediate estimates have taken on increased significance with many press accounts referring to 10-year estimates. In addition to various time periods, the forecasts include the outlook for both the economy and the budget. Economic forecasts not only drive the budgetary outlook, they also provide the basis for developing economic policy. And despite the linkage between economic and budgetary performance, the relationships are neither perfect nor constant. The status of these two requirements has evolved, particularly since the enactment of the Budget Act in 1974 creating the Congressional Budget Office (CBO). The Executive branch forecasts (done mainly by the Office of Management and Budget, OMB) tend to parallel the time periods. Often many of the economic results are similar, especially over a 10-year forecast; the budget estimates vary more widely... Journal: OECD Journal on Budgeting Year: 2003 Pages: 139-151 Volume: 3 Issue: 2 Handle: RePEc:oec:govkaa:5LMQCR2JGLG7 Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Author-Name: Dirk-Jan Kraan Author-Name: Michael Ruffner Title: Budgeting in the United States Abstract: The budgetary process in the United States federal government is different from that in other OECD member countries. This is a consequence of the strict separation of powers that characterises the American constitutional system and of a long historical development in which new layers of institutional innovation were successively added to existing ones. The presidential budgetary process started to develop in the beginning of the previous century. Its first codification took place in the Budget and Accounting Act of 1921, which required that the President submit a budget for the government to Congress and created the Bureau of the Budget, now the Office of Management and Budget (OMB). In the 1970s, Congress changed its own budgetary process through the Congressional Budget and Impoundment Control Act of 1974, which created the Congressional Budget Resolution and established the Congressional Budget Office. Another layer of innovation was added during the 1980s with the aim of controlling the deficit. This began with the Balanced Budget and Emergency Deficit Control Act of 1985, commonly known as the Gramm-Rudman-Hollings Act, which in 1990 was fundamentally amended by the Budget Enforcement Act... Journal: OECD Journal on Budgeting Year: 2003 Pages: 7-53 Volume: 3 Issue: 2 Handle: RePEc:oec:govkaa:5LMQCR2JGLMX Template-type: ReDIF-Article 1.0 Author-Name: Graham Scott Title: The Learning Government Abstract: The question is “how do governments identify important changes in their environment affecting the result of their policies and actions and develop capacity to make appropriate and timely adjustments in public policy and services?”. The short answer is “with great difficulty, although competent governments do so on some of the issues some of the time”. Successful dynamic adaptive behaviour in government involves virtually every significant feature of the system of government in some way. It is about how the rationality of policy analysis and public management comes together with the rationality of politics. It is about creating an environment which has good governance and good management. It involves resolution of disputes among competing views of the public interest or simply among competing private interests. It involves the effectiveness of the relationships between the government’s constituents and the institutions and policies of government. At the deepest level it is about effective democracy and how in any country a sequence of governments over time choose to exercise their constitutional authorities and whether they do this effectively in some wider sense of serving the best interests of their citizens in a system of democratic accountability... Journal: OECD Journal on Budgeting Year: 2003 Pages: 55-69 Volume: 3 Issue: 2 Handle: RePEc:oec:govkaa:5LMQCR2JGLLT Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: The Role of Fiscal Rules in Budgeting Abstract: Budgeting is a rule-driven process that regulates the raising and spending of public money. Detailed rules govern the submission of bids for resources by spending units, review of these bids by the Finance Ministry or another central organ, compilation of the annual budget, legislative action including the voting of appropriations, expenditure of funds during the financial year, and reporting on financial stocks and flows. Why have many national governments adopted new budget rules when they have a plethora of old ones? The new rules do not replace – although they may modify – existing rules, thereby adding to the complexity of established budget processes, and often adding as well to the time it takes to complete the main steps in the annual budget cycle. Why add to the complications of an already difficult process? If it is because the old rules do not work, why is it expected that new ones will make much of a difference? Furthermore, the old rules generally empower budget-makers by enabling them to allocate resources according to the preferences of government. Fiscal rules, by contrast, constrain budget-makers, taking away much of their authority to decide aggregate revenue and spending policy. These rules typically prescribe the balance between revenue and spending policy. Every fiscal rule is a limit on the exercise of political will. Why have democracies accepted or imposed fiscal limits on themselves, and why should we expect these limits to be effective when they run counter to the preferences of voters and politicians?... Journal: OECD Journal on Budgeting Year: 2003 Pages: 7-34 Volume: 3 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2JGL47 Template-type: ReDIF-Article 1.0 Author-Name: Ian Lienert Title: A Comparison Between Two Public Expenditure Management Systems in Africa Abstract: Many African countries are benefiting from reductions in their external debt. One important objective is to redirect the budgetary resources released from servicing external debt towards poverty-reducing expenditures. Several questions arise in this context. First, are the public expenditure management (PEM) systems of African countries robust enough to allow specific povertyreducingexpenditures to be identified in annual budgets and tracked in countries’ accounting systems? Second, does the expenditure control system allow poverty-reducing expenditures to be protected from cuts should there be unforeseen shortfalls in revenues? Third, are internal and external audit mechanisms effective, so as to ensure the integrity of expenditure reports, both in-year and annually? To answer these and other questions, an assessment of the entire PEM system is required in each country. Such a study has already been prepared.1 During 2001, the PEM systems of 24 low-income countries were assessed based on a common set of 15 questions in the areas of budget preparation, budget execution, and fiscal reporting. Figure 1 shows the results for two regions of Africa (Anglophone countries and Francophone countries) – well below what is required to meet the objectives of effective PEM systems (both regions attained only about 40% of the required benchmarks)... Journal: OECD Journal on Budgeting Year: 2003 Pages: 35-66 Volume: 3 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2JGL22 Template-type: ReDIF-Article 1.0 Author-Name: Jan-Eric Furubo Title: The Role of Evaluations in Political and Administrative Learning and the Role of Learning in Evaluation Praxis Abstract: The writing of this paper, is in reference to my contribution in Can Governments Learn?, one of the books published by the International Evaluation Research Group. My immediate and first reaction was that it is of course always very nice to be asked to contribute for a distinguished audience. My second reaction was to ask myself when my essay in Can Governments Learn? was really written and what questions it dealt with; and perhaps even more, what was the answer to the question which constitutes the title of the book. The need to ask the latter questions had of course something to do with the answer to the first question, namely that the essay was written about 10 years ago. It was therefore obvious that the discussion in this book in a more technical sense had to be updated, but also had to take into account both some new empirical material and the discussion within a couple of intellectual fields. The title of this current paper implies several questions: to what degree politicians and administrators learn from evaluations, and also to what degree learning takes place among the evaluators themselves. These questions create a sort of strategic problem. Am I going to give the answer at the beginning of my paper or perhaps later? But perhaps I will compromise: I will start with a short version of the answer now, but elaborate on the answer later... Journal: OECD Journal on Budgeting Year: 2003 Pages: 67-85 Volume: 3 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2JGL0P Template-type: ReDIF-Article 1.0 Author-Name: Maria Barrados Author-Name: John Mayne Title: Can Public Sector Organisations Learn? Abstract: In recent years, considerable attention has been focused on the importance of managing information in organisations, as well as the challenges for organisations to make use of and adapt from it. Organisationsare expected to value information, to be able to learn from the past and to adapt to changing circumstances. While much of the literature has focused on  private sector organisations, public sector organisations and indeed thegovernments within which they operate are undergoing significant reforms and face equal challenges. This paper considers organisational learning in the public sector in light of current public sector reform initiatives, many of which have implicitly been based on the assumption that the public sector can indeed use empirical evidence on past experience to inform current decision-making. In doing so, the paper tries to avoid treating organisational learning anthromorphically, focusing instead on the processes and procedures that form the life blood of organisations. Learning in organisations relates to how the organisation deliberately changes and adapts over time in terms of structures, functions, values, attitudes and behaviour. Organisational learning, as we shall use the term, refers to formal structures of information and whether or not they are used. Our interest is in how organisations can bring together information on past performance and have it influence decisions. Building on organisational learning literature, we will argue that while individual learning is important, it is not enough. There is a need to institutionalise learning processes within a public sector organisation... Journal: OECD Journal on Budgeting Year: 2003 Pages: 87-103 Volume: 3 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2JGKZX Template-type: ReDIF-Article 1.0 Author-Name: Jean-Michel Saussois Title: Knowledge Management in Government: An Idea Whose Time Has Come Abstract: Governments cannot afford to overlook a ground swell that is currently transforming companies, and more especially big companies. It is important that governments draw the appropriate conclusions, not by seeking to “copy” the private sector, but by endeavouring to innovate in accordance with their own identity and specificity and in accordance with their own way of managing their human resources. The following issue paper is in three parts: the first part briefly describes the ground swell, which is commonly known as knowledge management; the second part shows why this movement is also of significance for the public sector; the third part makes proposals with a view to initiating a debate capable of turning into a genuine action programme affecting government over the coming years... Journal: OECD Journal on Budgeting Year: 2003 Pages: 105-120 Volume: 3 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2JGKXT Template-type: ReDIF-Article 1.0 Author-Name: Christopher Pollitt Title: Public Management Reform: Reliable Knowledge and International Experience Abstract: In this paper I want to address some fundamental questions concerning the nature of knowledge about public management reform, and particularly its transferability between countries and contexts. My main point will be that knowledge of what works and what does not tends to be heavily contextdependent. That is to say, a technique or organisational structure which succeeds in one place may fail in another. So – to put it bluntly – there is no set of general tools that can be transferred from one jurisdiction to another, all around the world, with confidence that they will work well every time. This means we have to look carefully at contexts, and at the “terms of trade” each time we are thinking of borrowing a good management idea from somewhere else. This is not a “how-to-do-it” paper. Rather it is a series of reflections on the nature of the “trade” in public management reforms, drawing on the existing academic literature and seeking to identify issues where further work seems to be desirable... Journal: OECD Journal on Budgeting Year: 2003 Pages: 121-134 Volume: 3 Issue: 3 Handle: RePEc:oec:govkaa:5LMQCR2JGKWG Template-type: ReDIF-Article 1.0 Author-Name: Cheryl Barnes Author-Name: Ken Warren Title: The Impact of GAAP on Fiscal Decision Making: A Review of Twelve Years' Experience with Accrual and Output-based Budgets in New Zealand Abstract: This paper reviews the theory and the rhetoric for accrual accounting and budgeting by government. Reference is made to generally accepted accounting practice (GAAP) in New Zealand. An historical summary is provided of 12 years of accrual budgets and, using this as a base, assessments are made of the actual benefits that have been achieved... Journal: OECD Journal on Budgeting Year: 2004 Pages: 7-40 Volume: 3 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2JD2D6 Template-type: ReDIF-Article 1.0 Author-Name: Gudrun Maass Title: Funding of Public Research and Development: Trends and Changes Abstract: This paper describes trends and practices in the funding of public research and development (R&D). It is based on a study which was carried out by the OECD’s Directorate for Science, Technology and Industry. The study dealt with several aspects of the governance of public research such as the structures of science systems, priority setting issues, funding and the management of human resources.The paper provides a picture of... Journal: OECD Journal on Budgeting Year: 2004 Pages: 41-69 Volume: 3 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2JD2BT Template-type: ReDIF-Article 1.0 Author-Name: Donald Marron Title: Greener Public Purchasing as an Environmental Policy Instrument Abstract: Governments increasingly include environmental criteria in their purchasing decisions. For example, purchasing guidelines often require that particular products contain a minimum amount of recycled content or achieve specified levels of energy efficiency. Guidelines may also favour – through price preferences, explicit set-asides, or other mechanisms – suppliers who exceed official pollution standards, abide by environmental frameworks... Journal: OECD Journal on Budgeting Year: 2004 Pages: 71-105 Volume: 3 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2JD28N Template-type: ReDIF-Article 1.0 Author-Name: Peter Kunzlik Title: International Procurement Regimes and the Scope for the Inclusion of Environmental Factors in Public Procurement Abstract: Through adherence to regional trade agreements, membership in common market areas, and other international treaties, OECD member country governments have agreed to subject their public procurement procedures to a certain degree of international regulation. This paper will review the importance of legal constraints that... Journal: OECD Journal on Budgeting Year: 2004 Pages: 107-152 Volume: 3 Issue: 4 Handle: RePEc:oec:govkaa:5LMQCR2JD27L Template-type: ReDIF-Article 1.0 Author-Name: Jack Diamond Author-Name: Duncan Last Title: Budget System Reform in Transition Economies: The Case of the Former Yugoslav Republics Abstract: The 1990s witnessed the unprecedented restructuring of a large number of formerly interconnected centrally planned economies into market-based systems. These reforms were fundamental, affecting all sectors of the economy and all segments of the population. Journal: OECD Journal on Budgeting Year: 2006 Pages: 7-48 Volume: 4 Issue: 1 Handle: RePEc:oec:govkaa:5L9SR2ZVV5HD Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Author-Name: Michael Ruffner Title: Budgeting in Denmark Abstract: Denmark has a very large public sector and this has historically been the case. Currently at over 56% of GDP, the size of the public sector in Denmark is larger than that of any other OECD member country except Sweden.   Journal: OECD Journal on Budgeting Year: 2006 Pages: 49-79 Volume: 4 Issue: 1 Handle: RePEc:oec:govkaa:5L9SR2ZQ4DJB Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Twenty-five Years of Budgeting Reform Abstract: The network of senior budget officials (SBO) was launched in 1980 as an ad hoc response to the budget stress that beset most developed countries in the aftermath of oil price shocks, high inflation, and economic stagnation. Journal: OECD Journal on Budgeting Year: 2006 Pages: 81-102 Volume: 4 Issue: 1 Handle: RePEc:oec:govkaa:5L9SR2Z19SBN Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Title: Issues in Accrual Budgeting Abstract: There would appear to be a growing consensus among OECD member countries concerning the merits of adopting accrual accounting in the public sector. Nearly one-third of member countries have adopted full accrual accounting and a number of other member countries have adopted accrual accounting for specific transactions – most frequently for the recording of interest on the public debt and employee pension costs. Journal: OECD Journal on Budgeting Year: 2006 Pages: 103-119 Volume: 4 Issue: 1 Handle: RePEc:oec:govkaa:5L9SR2XXWB25 Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Title: Off-budget and Tax Expenditures Abstract: This paper reports the work that has been done by the OECD Secretariat on the project on off-budget and tax expenditures. The paper makes use of information that was provided at an expert meeting held in Paris in February 2004. Journal: OECD Journal on Budgeting Year: 2006 Pages: 121-142 Volume: 4 Issue: 1 Handle: RePEc:oec:govkaa:5L9SR2XV42TK Template-type: ReDIF-Article 1.0 Author-Name: Frank Bodmer Author-Name: Alain Geier Title: Estimates for the Structural Deficit in Switzerland, 2002 to 2007 Abstract: The new Swiss budget rule or “debt brake” is based on the idea or rather the aim that the structural deficit should be zero.1 Therefore, the size of the structural deficit is of special importance for the conduct of fiscal policy under the debt brake. In 2003, it was estimated that there is a structural deficit in the order of CHF 3.5 billion, which represents about 7% of central government expenditure or under 1% of GDP. In comparison to the European Union deficit rule (Maastricht criteria) of 3% of GDP, this is of course a small number. However, this excludes the social security accounts, which are not included in the federal financial accounts in Switzerland. In addition, under the regime of the debt brake, the adjustment of a structural deficit has in principle to be immediate, which can be quite painful even for relatively small deficits. The adjustment can also be delayed, but this requires special provisions either through the law or through a decision of parliament to overrule the debt brake for extraordinary circumstances. The latter has to be supported by a qualified majority of both chambers of parliament. Journal: OECD Journal on Budgeting Year: 2006 Pages: 77-100 Volume: 4 Issue: 2 Handle: RePEc:oec:govkaa:5L9SVQN3916J Template-type: ReDIF-Article 1.0 Author-Name: David Webber Title: Managing the Public's Money: From Outputs to Outcomes – and Beyond Abstract: The search for better ways of budgeting and managing public finances is a continuous process. This may be because, like in many other areas of economics, there are always some who see a need or an opportunity to improve on existing approaches. It may also be because performance – that is, the results from public spending activities – is often disappointing or at least falls short of the political rhetoric that announced or accompanies it. Either way, the continuous pursuit of improvement is a good thing and one hopes that there are many successful innovations yet to be uncovered. Journal: OECD Journal on Budgeting Year: 2006 Pages: 101-121 Volume: 4 Issue: 2 Handle: RePEc:oec:govkaa:5L9SVQN0JT26 Template-type: ReDIF-Article 1.0 Author-Name: Michael Ruffner Author-Name: Joaquin Sevilla Title: Public Sector Modernisation: Modernising Accountability and Control Abstract: How governments keep control over large and complex operations and how they are held to account has changed over the past 15 years because of technological innovations, changes in the size of government, and the introduction of performance budgeting and management. This paper looks at the challenges and changes under way to control systems in OECD member countries. It is an interim report. More comprehensive information on the topic will be gathered in a survey to be completed in 2005. Journal: OECD Journal on Budgeting Year: 2006 Pages: 123-141 Volume: 4 Issue: 2 Handle: RePEc:oec:govkaa:5KMMPR6392KK Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Author-Name: Teresa Curristine Title: Budgeting in Chile Abstract: In June 2003, the Budget Office of the Ministry of Finance of Chile requested the OECD to carry out a review of the Chilean budgeting system in a similar fashion as it does for its member countries. The OECD responded positively to this request, recognising that Chile is an established observer of the OECD Working Party of Senior Budget Officials and recognising the strong interest in the Chilean budgeting system expressed by members of the Working Party. Journal: OECD Journal on Budgeting Year: 2006 Pages: 7-45 Volume: 4 Issue: 2 Handle: RePEc:oec:govkaa:5L9SVQNBTMS8 Template-type: ReDIF-Article 1.0 Author-Name: Carlos Santiso Title: Legislatures and Budget Oversight in Latin America: Strengthening Public Finance Accountability in Emerging Economies Abstract: Reforming budgetary institutions for effective government is a critical task for emerging economies. Strengthening the role of parliament in the budget process is an integral part of the restoration of democracy throughout Latin America, which requires a re-equilibration of executive and legislative prerogatives in public policy. The role of legislatures in public budgeting and public finance management has nevertheless been largely overlooked in the first stage of economic reform. This is starting to change, as the contribution of legislatures to the budgetary process is currently being re-evaluated, both in developed and, more recently, in developing countries.1 It is increasingly being recognised that parliaments have a critical role to play to strengthen economic governance, improve transparency in public finances and ensure government accountability. Enhancing legislative scrutiny of the budget and oversight of its execution is increasingly considered as a means to strengthen government accountability and curb corruption (OECD, 2002; G8, 2003).2 The international financial institutions are particularly keen to promote greater transparency in public finance management and to improve governmental financial information systems in emerging economies... Journal: OECD Journal on Budgeting Year: 2006 Pages: 47-76 Volume: 4 Issue: 2 Handle: RePEc:oec:govkaa:5L9SVQN79PHC Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Comparative Law, Constitutions, Politics and Budget Systems. Abstract: This part aims to identify reasons for the wide differences in budget system laws in advanced countries. Comparative research on budget system laws is virtually non-existent. The economics and public finance literature provides little explanation as to why budget system laws differ so widely across countries. Comparative law studies are more promising, particularly those relating to the hierarchy of law. The differences in the relative importance of the constitution, statutes and regulations provide some explanation as to why countries’ budget-related laws are so different. However, there is no theory to explain why the relative weight of each of these sources of law differs across countries. Political variables are also important, particularly the past and present forms of government. The degree of separation of powers between the executive and the legislature partly explains the extent to which law is used for specifying budget processes and actors. Journal: OECD Journal on Budgeting Year: 2006 Pages: 23-57 Volume: 4 Issue: 3 Handle: RePEc:oec:govkaa:5L9VCJLFPSR3 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Comparisons of OECD Country Legal Frameworks for Budget Systems Abstract: This chapter compares the extent to which law is used to specify budget players and processes, with a particular focus on 13 OECD countries. Although budget system laws serve differing purposes, new budget-related laws are often adopted to introduce budget reforms. Differences in the laws underpinning the main budget players – especially legislatures, the political and non-political executive, and external audit offices – are found to be wide. Important differences are observed in the extent to which law is used for specifying each stage of the budget processes: preparation, presentation, adoption (by the legislature), execution, government accounting and fiscal reporting arrangements. Comparative “models” or tables are provided for various budget-related issues and processes, including: budget timetables (legal requirements); fiscal rules; medium-term budget frameworks; the nature, structure and duration of appropriations; annual and in-year accounts, as well as for specific budget players such as parliamentary budget committees or external audit offices. Journal: OECD Journal on Budgeting Year: 2006 Pages: 59-123 Volume: 4 Issue: 3 Handle: RePEc:oec:govkaa:5L9VCJLBG0R5 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Is There an Optimum Legal Framework for the Budget System? Abstract: Public finance specialists and constitutional theorists are very reluctant to establish legal norms for budget systems. International organisations have published guidelines for desirable features of budgetary transparency. Except for external audit standards, international bodies have not specified which features should be incorporated in domestic law. As a result, there are no international standards that specify legal requirements for desirable features of national budgeting systems. Classical and new budget principles, as well as the distinct functional responsibilities of the legislature and the executive in budgetary processes, should guide policy makers who wish to establish a “good” law for their national budget system. For budget preparation, adoption, execution, reporting and auditing, this section identifies desirable features that should be included in the law. Suggestions are also made as to which budget principles should be included in constitutions, primary law and secondary law. Journal: OECD Journal on Budgeting Year: 2006 Pages: 125-154 Volume: 4 Issue: 3 Handle: RePEc:oec:govkaa:5L9VCJL7T70T Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Case Studies of Selected OECD Countries Abstract: Canada has a Westminster model of government and therefore does not highlight the legal basis for annual budget processes. A combination of laws, regulations and conventions govern budget preparation, adoption and budget reporting to Parliament. Although the principle of the supremacy of Parliament is enshrined in the Constitution, in practice, the executive – in particular the Cabinet of Ministers – has strong powers regarding the policies and amounts provided in annual budgets. The government has exclusive power to introduce the budget, and the legislature’s power to amend the budget proposed by the executive is extremely limited. Legislation does not provide a deadline for the executive to submit the budget to Parliament. In practice the budget is submitted to Parliament about one month before the fiscal year and adopted about three months after the fiscal year begins. The Constitution Act 1867, the Financial Administration Act 1985 (FAA) and the Auditor General Act 1977 (AGA) are the fundamental statutes governing budgetary processes (Box 1).1 The FAA has played a particularly important role in establishing the budget and financial management system. The Parliament of Canada Act 1875 does not contain any provisions on the parliamentary budget review process. Journal: OECD Journal on Budgeting Year: 2006 Pages: 155-479 Volume: 4 Issue: 3 Handle: RePEc:oec:govkaa:5L9VCJL4F4JB Template-type: ReDIF-Article 1.0 Author-Name: Rob Laking Title: Agencies: Their Benefits and Risks Abstract: This paper is about the benefits and agencies”, outside the mainstream of ministries under different rules of central control and internal area, in transition economies and in the developing agencies took hold in the 1980s and 1990s. “Agencies” distinctly “Anglo” phenomenon, a New Public the Next Steps executive agencies in the countries have had several types of public organisation long time, and in several governments apart minority of civil servants work in “core government”. variety simply a reflection of national administrative lessons to be drawn about organisational form and risks are there from genetic engineering Can transition economies and developing countries the organisational forms in their own public sectors governments of OECD countries? Journal: OECD Journal on Budgeting Year: 2006 Pages: 7-25 Volume: 4 Issue: 4 Handle: RePEc:oec:govkaa:5L9VCJP1GQ8X Template-type: ReDIF-Article 1.0 Author-Name: Michael Ruffner Author-Name: Joachim Wehner Author-Name: Matthias Witt Title: Budgeting in Romania Abstract: This review of the Romanian budget system was carried out as part of the Budget Project of the Working Party of Senior Budget Officials (SBO). The Budget Project aims to initiate and foster regional networks of Senior Budget Officials outside the OECD area. This review served as a basis for the examination of the Romanian budget system at the first meeting of the network of Senior Budget Officials of Central and Eastern Europe, held on 10-11 November 2004 in The Hague. Journal: OECD Journal on Budgeting Year: 2006 Pages: 27-54 Volume: 4 Issue: 4 Handle: RePEc:oec:govkaa:5L9VCJNX6K44 Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Joachim Wehner Title: Budgeting in Slovenia Abstract: This review of the Slovenian budget system was carried out as part of the Budget Project of the Working Party of Senior Budget Officials (SBO). The Budget Project aims to initiate and foster regional networks of Senior Budget Officials outside the OECD area. This review served as a basis for the examination of the Slovenian budget system at the first meeting of the network of Senior Budget Officials of Central and Eastern Europe, held on 10-11 November 2004 in The Hague... Journal: OECD Journal on Budgeting Year: 2006 Pages: 55-98 Volume: 4 Issue: 4 Handle: RePEc:oec:govkaa:5L9VCJM4NKG8 Template-type: ReDIF-Article 1.0 Author-Name: Gerrit Zalm Title: Introductory Speech for the Meeting of Senior Budget Officials of Central and Eastern European Countries Abstract: Ladies and gentlemen, it is a great pleasure for me to have the opportunity to make some opening remarks on this conference. Budget policy is a recurring theme in my career. In 1975 I started my career at the Ministry of Finance in the Budget Directorate. Later, as director of the CPB – the Netherlands Bureau for Economic Policy Analysis – I participated in the preparation of important reforms in our system of fiscal rules. And now, as Minister of Finance, I am more than ever convinced of the importance of a proper national budget policy. Not – or should I say, not only – because I like figures, but because these figures have a direct and serious impact on the wellbeing of our citizens. Without a sound budget policy there can be no sustainable social welfare system, no funds for a proper education policy, and no base for a durable economic growth. Therefore, I think that the effort to reform and improve national budget systems is one of the best things a social minded government can pursue. Journal: OECD Journal on Budgeting Year: 2006 Pages: 99-102 Volume: 4 Issue: 4 Handle: RePEc:oec:govkaa:5L9VCJLZPPG0 Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Title: Typically Dutch Abstract: This paper aims to identify a few features of institutions and policies in the Dutch public sector that can be characterised as “typically Dutch” and that, moreover, may be considered as worthy of further thought, or perhaps even as a source of inspiration, for countries that are presently thinking about the modernisation of their public sector. This aim implies two limitations that ought to be emphasised at the outset... Journal: OECD Journal on Budgeting Year: 2006 Pages: 103-125 Volume: 4 Issue: 4 Handle: RePEc:oec:govkaa:5L9VCJLRVG6H Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Title: Market-type Mechanisms and the Provision of Public Services Abstract: Market-type mechanisms are defined as “encompassing all arrangements where at least one significant characteristic of markets is present.” In the area of service provision, the prime instruments include outsourcing (contracting out), publicprivate partnerships (PPPs) and vouchers. This article describes each instrument, surveys its use in OECD countries, analyses the key issues involved, and offers an overall assessment. Journal: OECD Journal on Budgeting Year: 2006 Pages: 79-106 Volume: 5 Issue: 1 Handle: RePEc:oec:govkaa:5L9N6D3F718R Template-type: ReDIF-Article 1.0 Author-Name: Pamela Gomez Author-Name: Joel Friedman Author-Name: Isaac Shapiro Title: Opening Budgets to Public Understanding and Debate: Results from 36 Countries Abstract: As part of the global movement toward more open government, citizens have become increasingly concerned with obtaining access to accurate, comprehensive and timely information on the budgets of their countries. The International Budget Project developed the Open Budget Questionnaire, a measurement tool to evaluate public access to budget information from the perspective of civil society organisations. Journal: OECD Journal on Budgeting Year: 2006 Pages: 7-36 Volume: 5 Issue: 1 Handle: RePEc:oec:govkaa:5L9N6D3TKH5L Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Michael Ruffner Title: Budgeting in Switzerland Abstract: The Swiss budgeting system is characterised by three special features: the political environment; the debt containment rule; and the nature of the federal budget as a transfer budget. Prominent features of the political environment are direct democracy, consensus and federalism. Journal: OECD Journal on Budgeting Year: 2006 Pages: 37-78 Volume: 5 Issue: 1 Handle: RePEc:oec:govkaa:5L9N6D3JS78P Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Sustainable Budget Policy: Concepts and Approaches Abstract: Concern about fiscal sustainability has been fueled by the projected ageing of populations in OECD countries and the likely surge in government spending on pensions and health care. For the most part, it has not been driven by worries about the current fiscal position of countries. Journal: OECD Journal on Budgeting Year: 2006 Pages: 107-126 Volume: 5 Issue: 1 Handle: RePEc:oec:govkaa:5L9N6D3BMTMP Template-type: ReDIF-Article 1.0 Author-Name: Teresa Curristine Title: Government Performance: Lessons and Challenges Abstract: This article concentrates on attempts by OECD countries to introduce performance-based or results-based budgeting and management. The need to enhance public sector performance has become more urgent as governments face mounting demands on public expenditure, calls for higher quality services and, in some countries, a public increasingly unwilling to pay higher taxes. Journal: OECD Journal on Budgeting Year: 2006 Pages: 127-151 Volume: 5 Issue: 1 Handle: RePEc:oec:govkaa:5L9N6D35XSF0 Template-type: ReDIF-Article 1.0 Author-Name: Miguel Miaja Title: Fiscal Discipline in a Decentralised Administration: The Spanish Experience Abstract: This article analyses the experience of the Spanish government in achieving financial equilibrium between 1998 and 2003 and the institutional mechanisms for maintaining budget stability. Spain has a high degree of fiscal decentralisation; thus compliance with the budget discipline requirements of the European Stability and Growth Pact is somewhat complex. To ensure that all levels of government contribute to fulfilling Spain’s commitments under the SGP, budget stability legislation was passed in 2001. Main features are the prominent role of the central government in setting objectives and the responsibility of all levels of administration for those objectives. Though the public sector deficit has been significantly reduced in the period under study, some reforms to the legislation are currently being envisaged. Journal: OECD Journal on Budgeting Year: 2006 Pages: 39-54 Volume: 5 Issue: 2 Handle: RePEc:oec:govkaa:5L9VDH048KQ3 Template-type: ReDIF-Article 1.0 Author-Name: Jorgen Lotz Title: Accountability and Control in the Financing of Local Government in Denmark Abstract: In Denmark, nearly all public services for individuals and families are delegated to local authorities, resulting in high quality and flexible delivery. The financing of these services is mostly ensured by tax revenues determined by the individual local authority but linked to the central government income tax. Local accountability in this regard has recently been called into question. Although local borrowing is strictly controlled, the system of grants and equalisation does not give incentives for cost efficiency in local government. Other accountability instruments (matching grants, general grants, the long tradition of negotiations) are analysed in light of their impact on control. Journal: OECD Journal on Budgeting Year: 2006 Pages: 55-67 Volume: 5 Issue: 2 Handle: RePEc:oec:govkaa:5L9VDH00SF7K Template-type: ReDIF-Article 1.0 Author-Name: Freek Hoek Author-Name: Cor van Montfort Author-Name: Cees Vermeer Title: Enhancing Public Accountability in the Netherlands Abstract: This article focuses on non-departmental public bodies (NDPBs) in the Netherlands that are funded by public money and whose task is defined by law. In terms of public spending, the service delivery role of NDPBs is quite extensive, and they are investing in new ways of enhancing their efficiency, the quality of their services, and the confidence of those with whom they deal. The notion of broad public accountability applies: NDPBs are not only accountable to the responsible minister and to Parliament (vertical accountability) but to a wider range of stakeholders within civil society (social accountability, customer accountability). Internal accountability (supervisory boards) also has a role to play. The interrelationships are explored and various instruments are described, including performance contracts, annual reports, the role of ministers, and international social reporting standards. Journal: OECD Journal on Budgeting Year: 2006 Pages: 69-86 Volume: 5 Issue: 2 Handle: RePEc:oec:govkaa:5L9VDGZX35R5 Template-type: ReDIF-Article 1.0 Author-Name: Teresa Curristine Title: Performance Information in the Budget Process: Results of the OECD 2005 Questionnaire Abstract: Based on the results of the OECD 2005 questionnaire on performance information, this article provides an overview of the development and use of performance measures and evaluations in the budget process across OECD countries. This trend is both widespread and long-term. However, questions remain about the real extent of change and if and how performance information is used in budgetary decision making. The article examines: the different institutional roles and responsibilities in developing performance information; the main trends, challenges and success factors for implementation and how this information is used in the budget process; and what factors contribute to its use or lack of use. The article also classifies different approaches to performance budgeting. Two significant findings are that the majority of countries engage in performance-informed budgeting at the Ministry of Finance level (that is, performance information is most often used along with other information to inform but not to determine budget allocations) and that the main reason for not using performance information is the lack of a method to integrate it into the budget process. Journal: OECD Journal on Budgeting Year: 2003 Pages: 87-131 Volume: 5 Issue: 2 Handle: RePEc:oec:govkaa:5L9VDGZP5GHF Template-type: ReDIF-Article 1.0 Author-Name: Bram Scheers Author-Name: Miekatrien Sterck Author-Name: Geert Bouckaert Title: Lessons from Australian and British Reforms in Results oriented Financial Management Abstract:  Reform of government financial management systems in the past decade has seen developments in accrual accounting and in results-based budgeting and reporting. Australia has worked with an accrual-based framework for outcomes and outputs budgeting and reporting since fiscal year 1999/2000. The United Kingdom moved to a resource-based (or accrual-based) financial management system in April 2001. This article evaluates the Australian and British reforms, including aspects such as parliamentary control, political accountability, the role of managers, the political decision-making process, financial control, and critical factors for success or failure. Journal: OECD Journal on Budgeting Year: 2006 Pages: 133-162 Volume: 5 Issue: 2 Handle: RePEc:oec:govkaa:5L9VDGZL9ZWL Template-type: ReDIF-Article 1.0 Author-Name: Joaquin Sevilla Title: Accountability and Control of Public Spending in a Decentralised and Delegated Environment Abstract: This article provides an overview of different accountability and control issues in public spending. In a decentralised environment, public spending needs  ome degree of fiscal discipline, favourable institutional relationships, a stable negotiation framework, management co-operation, permanent and transparent reporting, and reliable and co-operative control structures across levels of government. The article discusses elements such as the role of the supreme audit institution in external and legislative control, the creation of audit committees to reinforce internal control, the use of performance contracts between ministries and agencies to ensure accountability and the search for efficiency, the use of third-party providers in public service delivery (including publicprivate partnerships) and the implications for government monitoring and control, and the use of performance information and programme evaluation. Journal: OECD Journal on Budgeting Year: 2006 Pages: 7-21 Volume: 5 Issue: 2 Handle: RePEc:oec:govkaa:5L9VDH0C0WNW Template-type: ReDIF-Article 1.0 Author-Name: Astrid Lübke Title: Fiscal Discipline between Levels of Government in Germany Abstract: The essential actors in co-ordinating fiscal discipline in Germany are the Federation and the 16 Länder. This article presents an overview of the legal basis of the budgetary process and how it is designed with respect to Federation-Länder relations. Developments since 1945 are also described, including the budget reform of 1969, German adherence to the European Economic and Monetary Union, and the work of the Federalism Commission (2003-04). Particular instruments for fiscal discipline in the German context include the Financial Planning Council and the national stability pact, and their roles are described as well as the procedures for submission of budget accounts and accounting control. Journal: OECD Journal on Budgeting Year: 2006 Pages: 23-37 Volume: 5 Issue: 2 Handle: RePEc:oec:govkaa:5L9VDH084CNQ Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Author-Name: Sang-In Kim Title: Budgeting in Thailand Abstract: Thailand has a sophisticated budget formulation process which has delivered solid fiscal results over time. This article discusses aspects of the budget process, including strategic performance budgeting, central development planning, the steps in the budget preparation timetable, and the roles of the spending ministries, the Bureau of the Budget and the Central Fund. Journal: OECD Journal on Budgeting Year: 2006 Pages: 7-36 Volume: 5 Issue: 3 Handle: RePEc:oec:govkaa:5L9PPN5DPPR5 Template-type: ReDIF-Article 1.0 Author-Name: David Corner Title: The United Kingdom Private Finance Initiative: The Challenge of Allocating Risk Abstract: Since 1992, the United Kingdom has used a new type of public-private partnership for the delivery of public services: the Private Finance Initiative. In the design of PFI projects, the assessment of risk, and who is best able to manage it, needs to be carefully considered. Journal: OECD Journal on Budgeting Year: 2006 Pages: 37-55 Volume: 5 Issue: 3 Handle: RePEc:oec:govkaa:5L9PPN56FHKK Template-type: ReDIF-Article 1.0 Author-Name: Marc Evrard Author-Name: Philippe Scutnaire Title: The “Control” of Public Social Security Institutions in Belgium Abstract: The Belgian government delegates some of its tasks to semi-public bodies in what is known as functional devolution. There are 15 public social security institutions in the sectors of employment and unemployment, pensions, family allowances, health and disability insurance. Journal: OECD Journal on Budgeting Year: 2006 Pages: 57-70 Volume: 5 Issue: 3 Handle: RePEc:oec:govkaa:5L9PPN51JVLW Template-type: ReDIF-Article 1.0 Author-Name: Paul L. Posner Title: Accountability Institutions and the Policy Process: The United States Experience Abstract: Accountability is now acknowledged as an important element in good governance in the public sector. The term itself is complex, covering many aspects including: the move from accounting to accountability; the need to increase transparency; the importance of the political interface; the distinction between internal and external accountability; the use of accountability information; the interaction of accountability systems with other systems to affect programme results; and more. Journal: OECD Journal on Budgeting Year: 2006 Pages: 71-96 Volume: 5 Issue: 3 Handle: RePEc:oec:govkaa:5L9PPN4T0CG8 Template-type: ReDIF-Article 1.0 Author-Name: Jack Diamond Author-Name: Pokar Khemani Title: Introducing Financial Management Information Systems in Developing Countries Abstract: In the past decade, developing countries have been encouraged to reform their public expenditure management systems and have increasingly embarked on major projects to computerise their government operations. Most popular among these have been projects to computerise government accounting and payment operations, by introducing government financial management information systems (FMISs). Journal: OECD Journal on Budgeting Year: 2006 Pages: 97-132 Volume: 5 Issue: 3 Handle: RePEc:oec:govkaa:5L9PPN4N5LR2 Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Daniel Bergvall Author-Name: Iris Müller Author-Name: Joachim Wehner Title: Budgeting in Croatia Abstract: Since 2000, three consecutive governments in Croatia have focused their policies on modernising the public administration and reforming the budget process. This article examines the budget process in Croatia in the light of its two unique characteristics: a very detailed account structure, and a large number of extra-budgetary funds and quasi-fiscal activities of public enterprises. The steps in the annual budget process are described, including the roles of specific actors (budget users, line ministries, the Central Government Treasury), and the limited role of Parliament in the formulation of budget policy. Journal: OECD Journal on Budgeting Year: 2006 Pages: 7-60 Volume: 5 Issue: 4 Handle: RePEc:oec:govkaa:5L9K4G8KTT5F Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Daniel Bergvall Title: Budgeting in Georgia Abstract: Following the Rose Revolution of November 2003, the government of Georgia has undertaken large reform initiatives in the area of fiscal policy. These efforts have focused on taxation, tax administration, and the budget process, including cash and debt management. A new budget system law became effective in January 2004, establishing a comprehensive framework for the functions and responsibilities of the Ministry of Finance and the spending agencies via a two-stage prioritisation process guided by the annual “Basic Data and Directions” document. Journal: OECD Journal on Budgeting Year: 2006 Pages: 61-109 Volume: 5 Issue: 4 Handle: RePEc:oec:govkaa:5L9K4G88PT0X Template-type: ReDIF-Article 1.0 Author-Name: Daniel Bergvall Author-Name: Claire Charbit Author-Name: Dirk-Jan Kraan Author-Name: Olaf Merk Title: Intergovernmental Transfers and Decentralised Public Spending Abstract: Intergovernmental grants are used in many countries to finance subnational spending and to implement national policies. However, the governance of grants is complex, and practices vary widely across OECD countries. The aim of this article is to provide a study of grant design that will be useful to policy makers. The article attempts to integrate both theoretical and empirical insights from the fiscal federalism literature as well as information obtained directly from practitioners concerning their experiences with the implementation of different types of grants. A typology of grants is presented, as well as an overview of the purposes of grants. The article concludes with some principles of grant design and implementation issues. Journal: OECD Journal on Budgeting Year: 2006 Pages: 111-158 Volume: 5 Issue: 4 Handle: RePEc:oec:govkaa:5L9K4G83WKF1 Template-type: ReDIF-Article 1.0 Author-Name: Barry Anderson Author-Name: Joseph J. Minarik Title: Design Choices for Fiscal Policy Rules Abstract: This article discusses issues regarding budget process rules in the context of the current pattern of rising fiscal deficits. It begins by explaining the premise that budget process rules have multiple objectives, and so must be judged according to multiple criteria. Prominent among those criteria, given the apparent economic sluggishness of the early years of the 1990s and the resulting fiscal deficits, are how any particular set of rules might facilitate economic recovery and growth, but also maintain fiscal responsibility and public credibility. Journal: OECD Journal on Budgeting Year: 2006 Pages: 159-208 Volume: 5 Issue: 4 Handle: RePEc:oec:govkaa:5L9K4G7T3DF5 Template-type: ReDIF-Article 1.0 Author-Name: Barry Anderson Author-Name: Teresa Curristine Author-Name: Olaf Merk Title: Budgeting in Norway Abstract: Norway is a prosperous country with a healthy economy and a very high standard of living. Norway provides a truly unique example of long-term budgetary planning through its successful management of oil assets by means of the Government Pension Fund – Global. This article examines the annual budget process which is an important factor in the health of Norway’s public finances. The cabinet has a central role in formulating the budget via the annual budget conferences. Parliament has a strong formal position, and the Ministry of Finance has a long tradition of providing objective and unbiased information to Parliament. The article also describes the high degree of managerial flexibility, the system of accountability for results, human resource management, financial management and reporting, the use of performance information, and the role of local and regional governments. Journal: OECD Journal on Budgeting Year: 2006 Pages: 7-43 Volume: 6 Issue: 1 Handle: RePEc:oec:govkaa:5L9HTLZP3H6C Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Title: Budgeting in Singapore Abstract: The public finance system of Singapore consists of four “pillars”: the budget sector itself; the Central Provident Fund; the government investment agencies; and various special funds not consolidated into the budget. The budget process is characterised by close interministerial co-operation and the use of constitutional fiscal rules, spending ceilings for ministries (“block budgets”), across-the-board budget extractions (spending cuts), endowment funds, central manpower controls, and continual underspending. Parliament has a limited role. The President of the Republic has an important role as “fiscal guardian”. The article describes these particular features of the Singapore budget process, and discusses other elements of budget implementation and government management such as the organisational structure of the government, the execution of budget appropriations, personnel management, financial management and reporting, and performance and results initiatives. Journal: OECD Journal on Budgeting Year: 2006 Pages: 45-85 Volume: 6 Issue: 1 Handle: RePEc:oec:govkaa:5L9HTLZ9R3WL Template-type: ReDIF-Article 1.0 Author-Name: John M. Kim Author-Name: Chung-Keun Park Title: Top-down Budgeting as a Tool for Central Resource Management Abstract: Top-down budgeting emerged in the 1990s as a response to fiscal crisis. Previously, the traditional bottom-up approach to budget formulation had conferred centralised authority for resource allocation on the finance ministry. Then, in an attempt to control the growing fiscal deficits in the 1990s, the finance ministry only set the overall expenditure ceiling and subceilings, and delegated detailed resource allocation decisions to line ministries. However, the level of delegation and the method of determining the expenditure ceilings vary across countries. This article describes country experiences with top-down budgeting and makes policy suggestions for its use as a tool for central resource management. The article also explores the relative advantages, disadvantages, and complementarities of the two approaches. Journal: OECD Journal on Budgeting Year: 2006 Pages: 87-125 Volume: 6 Issue: 1 Handle: RePEc:oec:govkaa:5L9HTLZ7H9Q7 Template-type: ReDIF-Article 1.0 Author-Name: Pål Ulla Title: Assessing Fiscal Risks through Long-term Budget Projections Abstract: Long-term budget projections are in their infancy. The method described here is a bottom-up approach to measure future fiscal challenges. The sustainability criteria must be regarded as restrictions of the total fiscal aggregates, confronting bottom-up projections with top-down limits. Uncertainties have often given long-term projections little credibility;  sensitivity analysis has to be done. This article discusses the main reasons for uncertainty and how to handle them. In most OECD countries the increase in the elderly population is not only a transitory problem created by high fertility rates after the Second World War. Higher longevity will create permanent higher old-age dependency rates in the future. Some projections even indicate that those rates will increase after the baby-boom generation is gone. Thus it is necessary to consider both how pension reforms are formulated and a broader agenda for reform of the public sector. Given the lower supply of labour, it may be important to modernise the public sector and create less public demand for labour. In many countries, policy reforms will be necessary to create fiscal sustainability to avoid future fiscal risks. Journal: OECD Journal on Budgeting Year: 2006 Pages: 127-187 Volume: 6 Issue: 1 Handle: RePEc:oec:govkaa:5L9HTLZ55KNN Template-type: ReDIF-Article 1.0 Author-Name: Florence Kuteesa Author-Name: Ishmael Magona Author-Name: Maris Wanyera Author-Name: James Wokadala Title: Uganda: A Decade of Budget Reform and Poverty Reduction Abstract: Uganda’s economy has undergone major fluctuations from a vibrant economy in the 1960s, to suffering severe macroeconomic imbalances in the 1970s and 1980s, to enjoying an economic revival since the late 1980s. A key focus of recent public financial management reforms has been to improve macroeconomic performance and ensure strict budgetary discipline, in particular through the use of a three-year rolling budgetary plan as early as 1992/93. However, problems with the cash budgeting system undermined efforts to improve budget planning, requiring complementary reforms to cash management and commitment control systems. Reforms have also focused on poverty reduction, expenditure efficiency and effectiveness, financial management and accountability, and transparency and openness. Journal: OECD Journal on Budgeting Year: 2006 Pages: 1-25 Volume: 6 Issue: 2 Handle: RePEc:oec:govkaa:5L9G81HZHJXP Template-type: ReDIF-Article 1.0 Author-Name: Andrew R. Donaldson Title: Aspects of the New Public Finance Abstract: This article considers the context of the emerging developing country public finance and identifies two particular driving forces behind its increased complexity: the policy space between public and private within countries, and the policy space between countries and institutions in the international arena. The article highlights that international co-operation happens not as much across national borders as at a national level influenced by international agreements. Hence the building of common approaches to partnerships, prioritisation and budgeting is important for the efficient mobilisation of resources. The article also stresses the need for more direct co-operation between countries, particularly in a regional developing context; the role of ministries of finance and budget offices in ensuring the growth of such co-operation; and the need to streamline budget institutions to ensure their effectiveness. Journal: OECD Journal on Budgeting Year: 2006 Pages: 1-7 Volume: 6 Issue: 2 Handle: RePEc:oec:govkaa:5L9G81HMT3WF Template-type: ReDIF-Article 1.0 Author-Name: Alta Fölscher Title: A Balancing Act: Fiscal Responsibility, Accountability and the Power of the Purse Abstract: In recent years a greater demand for strengthening the role of the legislature in the budget process has become evident worldwide: more than a quarter of countries have revised their constitutions over the last 15 years to give Parliament more powers. In particular, several African countries are experiencing pressure to increase the legislature’s role in the preparatory stage of the budget process and as a check on the executive. This article argues that there are risks in allowing greater parliamentary activism, but that a greater risk is associated with marginalising the role of Parliament in the budget process. The article sets out options for designing a role for Parliament that allows it sufficient oversight, while managing the risks of ill-disciplined parliamentary action leading to excess spending or of Parliament becoming a conduit for narrow, ineffective spending demands. Journal: OECD Journal on Budgeting Year: 2006 Pages: 1-20 Volume: 6 Issue: 2 Handle: RePEc:oec:govkaa:5L9DSM8WMRVK Template-type: ReDIF-Article 1.0 Author-Name: Adriano Neto Author-Name: Ilda Jamba Title: Economic Reforms in Angola in the General Context of Africa Abstract: This article addresses the political, social and broader economic context of public finance reforms in Angola, drawing upon historical perspectives of economic development in Africa and the country’s own experience. The article highlights changes in Angolan practices in line with generally accepted public finance principles, and demonstrates how these reforms occurred within a particular political economy and within sets of international financial, economic, trade and political relationships that influenced their design and implementation. The article illustrates how economic structures and governance systems have been directly linked to the platform of natural resources and social relationships in Angola and in the general African context. Journal: OECD Journal on Budgeting Year: 2006 Pages: 1-12 Volume: 6 Issue: 2 Handle: RePEc:oec:govkaa:5L9DSM8RV8MX Template-type: ReDIF-Article 1.0 Author-Name: Alta Fölscher Title: African Experience with Budget Reform: Introduction Abstract: The nine countries represented in the 2004 post-seminar resource book are at the forefront of the African budget reform experience. This introductory article draws on these case studies to view the milestones achieved and some of the lessons learnt, both on the content of reforms and on how they could be sequenced and managed. It also draws on the proceedings of the three-day seminar on budget reform in Africa held in December 2004 that not only offer a wider experience base, but also provide a summary of the more significant lessons learnt from the combined experience. These lessons are the core of this article: they are presented as ten key budget reform principles which emerged from the seminar discussions, and are highlighted with examples from the case studies and further discussion of key seminar concepts. Journal: OECD Journal on Budgeting Year: 2006 Pages: 1-16 Volume: 6 Issue: 2 Handle: RePEc:oec:govkaa:5L9G8J52HH46 Template-type: ReDIF-Article 1.0 Author-Name: Chauncy Simwaka Title: Malawi: Lessons Learnt from First Reforms Lead to New Approach Abstract: Malawi provides valuable experience on the advantages of a holistic approach when attempting reforms, and on how to manage longer reform programmes. Since 1995, the budget process has been based on the principles of the Medium-term Expenditure Framework. This article presents the findings of a comprehensive review of the MTEF in 1999/2000 which examined its strengths and weaknesses, the possible causes and the proposed reforms required. MTEF Phase II is targeted at strengthening the management and co-ordination of the budget process, ensuring that there is political leadership of the budget process, improving policy and budget scrutiny processes, and strengthening financial accountability systems. The article also draws on a review of the education sector for a line ministry perspective on whether and how budgetary reforms assist in improving service delivery. Journal: OECD Journal on Budgeting Year: 2006 Pages: 1-22 Volume: 6 Issue: 2 Handle: RePEc:oec:govkaa:5L9G8J50B57C Template-type: ReDIF-Article 1.0 Author-Name: José Sulemane Title: Mozambique: Better Budget Machinery: First Focus of Reforms Abstract: Mozambique is undergoing a number of major reforms in the public sector including reform of the public finance management system. This article describes the environment before the budget reforms, highlighting the weaknesses in budget planning and preparation, budget implementation and the governance framework including the weak oversight role of Parliament. A legal framework was put in place as a first step. Underlying systemic problems were addressed to allow clearer linkages between budgets and service delivery. Then budget planning reforms were introduced. The article discusses the nature of the major technical reforms, considers the governance framework and provides an assessment of the effectiveness of the reforms. Journal: OECD Journal on Budgeting Year: 2006 Pages: 1-13 Volume: 6 Issue: 2 Handle: RePEc:oec:govkaa:5L9G81JJ3Z0S Template-type: ReDIF-Article 1.0 Author-Name: Alta Fölscher Author-Name: Neil Cole Title: South Africa: Transition to Democracy Offers Opportunity for Whole System Reform Abstract: This case study considers the substantial reforms to the South African public expenditure management system undertaken since the mid-1990s. The key aspects of the reform process have been: establishing the institutional framework for budget reforms through the “new” Constitution and further national legislation and practice; adopting a multi-year budget framework and top-down budget process; developing a framework for public financial management and reporting; improving the classification system of public finances; and creating a performance-oriented public service. South Africa has successfully implemented a number of these reforms and has radically altered the way in which it budgets for public services and how it accounts for public expenditure and commitments. The case study concludes by drawing on the lessons learned through this process. Journal: OECD Journal on Budgeting Year: 2006 Pages: 1-37 Volume: 6 Issue: 2 Handle: RePEc:oec:govkaa:5L9G81J5PGJB Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Daniel Bergvall Author-Name: Ian Hawkesworth Author-Name: Philipp Krause Title: Budgeting in Hungary Abstract: This review of the Hungarian budget process was carried out in May 2006. The review covers budget formulation, budget execution, parliamentary approval, accounting and auditing, and sub-national financing. Hungary has modernised its budget process over the last ten years, first as part of the pre-accession programme and then, since EU accession in 2004, in connection with the Convergence Programme 2005-08. Nevertheless, there remain some shortcomings which include the focus on the actual (non-cyclically adjusted) deficit, the focus on the budget year rather than the medium term, the lack of rules of budgetary discipline, and the lack of transparency concerning forecasts and outcomes. Hungary’s long-term growth record and general economic outlook are good, but institutional reform to correct these shortcomings is important for fiscal consolidation and macroeconomic stability. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-61 Volume: 6 Issue: 3 Handle: RePEc:oec:govkaa:5L9DNZG9GQ44 Template-type: ReDIF-Article 1.0 Author-Name: Árpád Kovács Title: Competitiveness and Modernisation of Public Finances: Selecting an Action Scenario in Hungary Following EU Accession Abstract: The most important strategic tasks of Hungarian economic policy are to complete the process of European integration, to build up the appropriate institutional and social capacities and to harmonise real and nominal convergence. This article discusses a theoretical framework for modernisation and how it could be adapted to the Hungarian public sector. Several action scenarios are discussed, but any reforms should aim to rethink the role of the state and improve competitiveness while maintaining social cohesion. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-24 Volume: 6 Issue: 3 Handle: RePEc:oec:govkaa:5L9DNZFW7JNT Template-type: ReDIF-Article 1.0 Author-Name: Gösta Ljungman Title: The Medium-Term Fiscal Framework in Sweden Abstract: Since 1997, a medium-term fiscal framework has been applied to virtually all aspects of budget preparation in Sweden. The longer three-year horizon has enabled better fiscal discipline through the use of fiscal targets and advanced forecasting models. Particular attention is placed on ensuring the consistency and quality of forecasts. In addition, forecasting of revenues and expenditures is an exercise that involves all levels of the central government administration five or six times a year. Thus the preconditions for well-informed and rational decisions on government policies have been drastically enhanced in Sweden. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-17 Volume: 6 Issue: 3 Handle: RePEc:oec:govkaa:5L4W3887XDZV Template-type: ReDIF-Article 1.0 Author-Name: Teresa Ter-Minassian Title: Fiscal Rules for Subnational Governments: Can They Promote Fiscal Discipline? Abstract: Experience indicates that fiscal rules can be helpful as a disciplinary device at the central government level. This article explores whether fiscal rules could be usefully adopted in a decentralised framework, where the behaviour of subnational governments may undermine fiscal discipline. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-11 Volume: 6 Issue: 3 Handle: RePEc:oec:govkaa:5L4W386D0C9P Template-type: ReDIF-Article 1.0 Author-Name: David King Title: Allocation of Taxing Powers Abstract: Sub-central taxes are needed because sub-central governments spend large sums. This article discusses some key issues in sub-central taxation from an economist’s perspective, including the scale and role of sub-central governments, their main revenue sources, and questions of equity, tax sharing, economic management and accountability. A more detailed discussion explores the relative shares of domestic taxes and business taxes. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-33 Volume: 6 Issue: 3 Handle: RePEc:oec:govkaa:5L4W3866Z96B Template-type: ReDIF-Article 1.0 Author-Name: Richard Allen Author-Name: Dimitar Radev Title: Managing and Controlling Extrabudgetary Funds Abstract: This article addresses issues relating to the establishment and financial management of extrabudgetary funds (EBFs), a large group of government entities and accounts. The article develops a typology of EBFs and argues that they are frequently created because of budget system failures and political economy factors. The article recommends that data on EBFs be consolidated within a unified system of fiscal reporting and proposes an analytical framework that governments might use to evaluate the effectiveness and utility of their EBFs. Journal: OECD Journal on Budgeting Year: 2007 Pages: 7-36 Volume: 6 Issue: 4 Handle: RePEc:oec:govkaa:5L4TQ4SHNT6D Template-type: ReDIF-Article 1.0 Author-Name: Frans K. M. van Nispen Author-Name: Johan J. A. Posseth Title: Performance Budgeting in the Netherlands: Beyond Arithmetic Abstract: Performance-based budgeting seems to be a promising tool for improving the management and accountability of public finances. However, its application causes many difficulties. This article briefly reviews international experience with performance-based budgeting and explores its application in the Netherlands since the late 1990s, including a case study of the Safety Programme. The focus is on transparency and the quality of the performance information. Compared to the former input budget, performance-based budgeting constitutes a major step forward. Given the many difficulties in implementing performance budgeting, it is recommendable, though, to critically revise its scope and shape. Journal: OECD Journal on Budgeting Year: 2007 Pages: 37-62 Volume: 6 Issue: 4 Handle: RePEc:oec:govkaa:5L4TQ4S5TDVB Template-type: ReDIF-Article 1.0 Author-Name: Pietro Toigo Author-Name: Robert Woods Title: Public Investment in the United Kingdom Abstract: The new fiscal and expenditure policy framework adopted in the United Kingdom in 1997 included clear fiscal rules and a reformed system of budgetary controls and capital appraisal procedures. These macro and micro reforms allowed the historic shortfall in public investment to be addressed. This article lays out some general considerations for public investment policy, including involving the private sector, and describes how the United Kingdom has implemented a strategy to deliver an increase in public investment while maintaining a sustainable fiscal position. Journal: OECD Journal on Budgeting Year: 2007 Pages: 63-102 Volume: 6 Issue: 4 Handle: RePEc:oec:govkaa:5L4TDZ40LGLT Template-type: ReDIF-Article 1.0 Author-Name: Jorge C. Cunha Author-Name: Cláudia R. Braz Title: Public Expenditure and Fiscal Consolidation in Portugal Abstract: This article analyses the evolution of Portuguese public expenditure from 1990 to 2004, in order to assess the current position and the prospects for future developments in the absence of corrective measures and structural reforms. Journal: OECD Journal on Budgeting Year: 2007 Pages: 103-121 Volume: 6 Issue: 4 Handle: RePEc:oec:govkaa:5L4TDZ3RCJS6 Template-type: ReDIF-Article 1.0 Author-Name: Masato Miyazaki Title: Framework for Fiscal Consolidation: Successes and Failures in Japan Abstract: This article discusses selected historical developments of Japan’s public finance system from 1947 through 2004, then analyses the successful efforts for fiscal consolidation in the 1980s and the unsuccessful attempt in the 1990s. The article concludes with a look at ongoing reform efforts and lessons for the future. Journal: OECD Journal on Budgeting Year: 2007 Pages: 123-148 Volume: 6 Issue: 4 Handle: RePEc:oec:govkaa:5L4S5Z7S37NW Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Comparing Budget and Accounting Measures of the Federal Government's Fiscal Condition Abstract: This paper by the Congressional Budget Office examines two reports on fiscal policy in the United States: the budget and the government’s financial statements. The reports differ in concept and scope. Neither provides all of the relevant information about federal finances, but together they offer a more comprehensive perspective on the fiscal implications of present policies. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-25 Volume: 7 Issue: 1 Handle: RePEc:oec:govkaa:5L4QPL6Z76JK Template-type: ReDIF-Article 1.0 Author-Name: Christine Wong Title: Budget Reform in China Abstract: China has made crucial progress in the field of public expenditure management in the past ten years. This article reviews the reforms in budget formulation, approval, implementation and audit. Some weaknesses remain: for example, important decisions are still made outside of the budget process; and the highly decentralised fiscal system means that achievements at the national level have not been implemented at provincial and lower levels. Strengthening accountability mechanisms and enforcing aggregate fiscal discipline constitute the challenges for reforms in the next phase. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-24 Volume: 7 Issue: 1 Handle: RePEc:oec:govkaa:5L4QPL6R3S46 Template-type: ReDIF-Article 1.0 Author-Name: John P. Burns Title: Civil Service Reform in China Abstract: The Chinese government has undertaken extensive reforms to its civil service system over the past ten years. The capacity of the civil service has improved, but perhaps due to reasons other than civil service reform. This article reviews the government reforms in the context of the particular nature of the Chinese civil service system, and makes recommendations for further reforms. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-25 Volume: 7 Issue: 1 Handle: RePEc:oec:govkaa:5L4QPL6LK15H Template-type: ReDIF-Article 1.0 Author-Name: Teresa Curristine Author-Name: Maria Bas Title: Budgeting in Latin America: Results of the 2006 OECD Survey Abstract: This article provides a snapshot of the status of budgetary institutions, procedures and practices in Latin American countries based on the results of the OECD 2006 budget survey. Particular elements include: the legal framework and role of the legislature; fiscal rules; medium-term expenditure frameworks; performance information; and budget transparency. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-37 Volume: 7 Issue: 1 Handle: RePEc:oec:govkaa:5L4QDWPKZXMW Template-type: ReDIF-Article 1.0 Author-Name: John B. Gilmour Title: Implementing OMB's Program Assessment Rating Tool (PART): Meeting the Challenges of Integrating Budget and Performance Abstract: This article examines the PART initiative of the United States Office of Management and Budget from a practical standpoint: how federal agencies have dealt with the requirements of PART and what strategies they have employed to be successful. The article highlights four challenges that confront both agencies and OMB as they work to complete assessments of all 1 000 programmes and describes approaches that agencies are taking to meet these challenges. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-40 Volume: 7 Issue: 1 Handle: RePEc:oec:govkaa:5L4QDWM4XPZW Template-type: ReDIF-Article 1.0 Author-Name: Teresa Curristine Author-Name: Zsuzsanna Lonti Author-Name: Isabelle Joumard Author-Email: isabelle.joumard@oecd.org Title: Improving Public Sector Efficiency: Challenges and Opportunities Abstract: This article examines key institutional drivers that may contribute to improving public sector efficiency and focuses on one of them in more detail: performance information and its role and use in the budget process (“performance budgeting”). Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-41 Volume: 7 Issue: 1 Handle: RePEc:oec:govkaa:5L4QDWLWFPTJ Template-type: ReDIF-Article 1.0 Author-Name: David Webber Title: Integrating Current and Development Budgets: A Four-Dimensional Process Abstract: For most developing and transition countries, the integration of current and capital (or “development”) budgets is a major step towards improved budget management and more effective public finance institutions. Moving to a unified budget, however, can be a technically and managerially demanding task that involves legislative, institutional, budget presentation and expenditure management issues. Countries undertaking this step need to understand each of these dimensions, how they interact with each other, and how they may affect various aspects of the budget system. Journal: OECD Journal on Budgeting Year: 2007 Pages: 93-107 Volume: 7 Issue: 2 Handle: RePEc:oec:govkaa:5L4FGHL6V2LR Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Performance Budgeting and Accrual Budgeting: Decision rules or Analytic Tools? Abstract: Performance budgeting and accrual budgeting are analytic tools that provide information and insights which are not available through conventional approaches. But neither innovation is ready for widespread application as a decision rule in the budget process. This article urges fuller understanding of these innovations and their implications, and more systematic use of performance and accrual information for policy makers Journal: OECD Journal on Budgeting Year: 2007 Pages: 109-138 Volume: 7 Issue: 2 Handle: RePEc:oec:govkaa:5L4FGHKQ206D Template-type: ReDIF-Article 1.0 Author-Name: Susan Tanaka Title: Engaging the Public in National Budgeting: A Non-governmental Perspective Abstract: This article explores how citizens are being engaged in an important area of policy making – the budget – and suggests ways in which budget officials can use the powerful resource of the Internet to further that involvement. Journal: OECD Journal on Budgeting Year: 2007 Pages: 139-177 Volume: 7 Issue: 2 Handle: RePEc:oec:govkaa:5L4FBDLC6NZP Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Daniel Bergvall Author-Name: Ian Hawkesworth Title: Budgeting in Turkey Abstract: The Turkish budget process has three features which set it apart from other OECD countries: a centralised yet fragmented decision-making process; the IMF stand-by agreement as a de facto fiscal rule; and a very detailed line-item classification. This article analyses these features and makes suggestions for policy adjustment to improve effectiveness and efficiency. The article examines all stages of the budget process (preparation, parliamentary approval, execution, and accounting and auditing) and assesses Turkey’s recent rapid progress with reform. The article offers suggestions for next steps and new priorities for Turkey in the light of other OECD country experience. Journal: OECD Journal on Budgeting Year: 2007 Pages: 7-58 Volume: 7 Issue: 2 Handle: RePEc:oec:govkaa:5L4JB11325XW Template-type: ReDIF-Article 1.0 Author-Name: Jorge C. Rodriguez Author-Workplace-Name: Ministry of Finance, Chile Author-Name: Carla R. Tokman Author-Workplace-Name: Ministry of Finance, Chile Author-Name: Alejandra C. Vega Author-Workplace-Name: Ministry of Finance, Chile Title: Structural Balance Policy in Chile Abstract: Since 2001, Chile’s fiscal policy has been built on the concept of a central government structural balance. The Fiscal Responsibility Law, approved in 2006, gave legal force to key aspects of the structural surplus and fiscal policy. This article assesses the results of the structural surplus rule in Chile over the past six years. Journal: OECD Journal on Budgeting Year: 2007 Pages: 59-92 Volume: 7 Issue: 2 Handle: RePEc:oec:govkaa:5L4FGHLG64BR Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Off-budget Expenditure: An Economic and Political Framework Abstract: This paper, originally presented at the 1981 meeting of the OECD Working Party of Senior Budget Officials, discusses the fundamental purposes of budgeting and explores how off-budget expenditures weaken a government’s financial control. The paper gives insights on many aspects of budgeting that are still relevant today: the transformation of the public sector, the interface with the private sector, the scope and size of government, the role of regulation, the emergence of new organisational forms, and the use of performance objectives and long-term planning. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-32 Volume: 7 Issue: 3 Handle: RePEc:oec:govkaa:5L4FGXQSPC6G Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Author-Name: Daniel Bergvall Title: Budgeting in Austria Abstract: This article discusses budgeting institutions, processes and practices at the federal level in Austria. Separate sections are devoted to the budget formulation process, the role of parliament, and various aspects of budget implementation and government management issues. Each section highlights the government’s reform agenda and current practices, and analyses the two vis-à-vis OECD best practices. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-37 Volume: 7 Issue: 3 Handle: RePEc:oec:govkaa:5L4FGXQLLVQ6 Template-type: ReDIF-Article 1.0 Author-Name: Paul L. Posner Author-Name: Chung-Keun Park Title: Role of the Legislature in the Budget Process: Recent Trends and Innovations Abstract: This article provides a broad historical and conceptual overview of the evolution of legislative roles in budgeting, and assesses the potential consequences of expanded roles. By analysing country budget institutions and practices, the article proposes ways to establish sound relationships between the executive and legislative branches of government. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-26 Volume: 7 Issue: 3 Handle: RePEc:oec:govkaa:5L4F5SFQ6927 Template-type: ReDIF-Article 1.0 Author-Name: Luc Leruth Author-Name: Elisabeth Paul Title: A Principal-Agent Theory Approach to Public Expenditure Management Systems in Developing Countries Abstract: A well-functioning public expenditure management system is considered a critical pillar of government efficiency. This article discusses PEM systems in developing countries using an analytical framework based on principal-agent theory. This simple model can be applied to various PEM systems and allows for comparisons between institutional settings. To illustrate this, the authors analyse the benefits derived from the use by the ministry of finance of ex post audits and ex ante controls, and assess their value in terms of their ability to deter cheating. The authors derive a set of possible “control regimes” which can be used by the ministry of finance. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-29 Volume: 7 Issue: 3 Handle: RePEc:oec:govkaa:5L4F5SF3JDVB Template-type: ReDIF-Article 1.0 Author-Name: Lewis Hawke Title: Performance Budgeting in Australia Abstract: This article describes how the principles of management for results have worked in practice over the past two decades in Australia. The current performance information framework involves, among other things, the accrual-based outcomes and outputs policy, performance agreements between heads of agencies and their responsible ministers, and regular review and assessment, particularly at agency level. Journal: OECD Journal on Budgeting Year: 2007 Pages: 1-15 Volume: 7 Issue: 3 Handle: RePEc:oec:govkaa:5L4F5SDZDV8P Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Title: Programme Budgeting in OECD countries Abstract: This article explores ways in which countries can reform their budget classification to focus more on results. It also examines the use of performance information in the budget process and its presentation in budget documentation. The article draws attention to the danger in overloading the documentation with performance information that plays no role in the budget process and thereby detracts from transparency rather than enhancing it. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-41 Volume: 7 Issue: 4 Handle: RePEc:oec:govkaa:5KZNBHT3NC7B Template-type: ReDIF-Article 1.0 Author-Name: Lee McCormack Title: Performance Budgeting in Canada Abstract: This article describes the performance budgeting reforms of the government of Canada, the five main lessons learned over the past 30 years, and the current initiatives to strengthen performance measurement for the future. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-18 Volume: 7 Issue: 4 Handle: RePEc:oec:govkaa:5KZNBHR5PQ6G Template-type: ReDIF-Article 1.0 Author-Name: Rikke Ginnerup Author-Name: Thomas Broeng Jørgensen Author-Name: Anders Møller Jacobsen Author-Name: Niels Refslund Title: Performance Budgeting in Denmark Abstract: This article describes the development and current content of the performance management system in the Danish central government. Since the 1980s, innovations have included results-based management, performance contracts, activity-based budgeting, accrual accounting and budgeting, and the use of evaluations and reports. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-24 Volume: 7 Issue: 4 Handle: RePEc:oec:govkaa:5KZNBHQZGTLT Template-type: ReDIF-Article 1.0 Author-Name: John M. Kim Author-Name: Nowook Park Title: Performance Budgeting in Korea Abstract: Korea is in the initial stages of implementing performance-based budgeting. The system was introduced as part of a comprehensive fiscal reform package in the late 1990s. This article discusses the background, framework and implementation of performance budgeting and its impact in the budget process. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-11 Volume: 7 Issue: 4 Handle: RePEc:oec:govkaa:5KZNBHQKPK6L Template-type: ReDIF-Article 1.0 Author-Name: Raphael Debets Title: Performance Budgeting in the Netherlands Abstract: This article discusses the reforms introduced in the Netherlands since the 1980s to improve the transparency and efficiency of government programmes: programme budgeting, policy orientation, and interdepartmental policy reviews. The impact on the budget structure and process is described. An annex explains some typical characteristics of the Dutch budgetary process. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-20 Volume: 7 Issue: 4 Handle: RePEc:oec:govkaa:5KZNBHQG0S8S Template-type: ReDIF-Article 1.0 Author-Name: Elsa Pilichowski Author-Name: Emmanuelle Arnould Author-Name: Edouard Turkisch Title: Ageing and the Public Sector: Challenges for Financial and Human Resources Abstract: An ageing public service increases fiscal burdens while decreasing immediate capacities to deliver services. In the long run, however, it also offers an opportunity to downsize the public sector workforce if necessary and to change employment conditions and the management of government employees where this is deemed reasonable. This article reviews the experience of nine OECD countries in this field and presents some possible strategies for facing the wider ageing challenge. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-40 Volume: 7 Issue: 4 Handle: RePEc:oec:govkaa:5KZNBHQ9NV5L Template-type: ReDIF-Article 1.0 Author-Name: Frits Bos Title: The Dutch fiscal framework: History, current practice and the role of the central planning bureau Abstract: Major features of the Dutch fiscal framework are the trend-based fiscal framework with real net expenditure ceilings for the whole term of government, the role of independent organisations like the Central Planning Bureau (CPB), Statistics Netherlands and the Netherlands Court of Audit, and the intermediary role of the National Advisory Group on Budgetary Principles. This article describes the Dutch fiscal framework, its role in managing public expenditure, its history since 1814, the most recent national discussions and the role of the CPB. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-42 Volume: 8 Issue: 1 Handle: RePEc:oec:govkaa:5KZN363ZB4KB Template-type: ReDIF-Article 1.0 Author-Name: Thomas Küchen Author-Name: Pertti Nordman Title: Performance budgeting in Sweden Abstract: Management by performance began in Sweden’s public administration in the late 1980s, both as a tool for the government’s budget process and as a way for the government to control its agencies. This article discusses various aspects of the performance system in the Swedish context. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-11 Volume: 8 Issue: 1 Handle: RePEc:oec:govkaa:5KZN0VP0R5JH Template-type: ReDIF-Article 1.0 Author-Name: Robert J. Shea Title: Performance budgeting in the United States Abstract: This article describes the history of performance management in the United States government, including the Budget and Performance Integration initiative (BPI), the Program Assessment Rating Tool (PART), and the dedicated Internet site www.ExpectMore.gov. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-13 Volume: 8 Issue: 1 Handle: RePEc:oec:govkaa:5KZN0VNNXKVG Template-type: ReDIF-Article 1.0 Author-Name: Zafar Noman Title: Performance budgeting in the United Kingdom Abstract: This article discusses the United Kingdom framework for performance budgeting and management and its evolution from 1998 onwards, primarily focused on the period 1998-2007. Public service agreements (PSAs) have moved away from inputs and processes to a focus on the outcomes that matter to public service users. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-16 Volume: 8 Issue: 1 Handle: RePEc:oec:govkaa:5KZLKWP0PZ6H Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: The new accounting model of the Swiss confederation Abstract: Switzerland’s public accounting system has been completely overhauled. The New Accounting Model for the Confederation was used for the first time to prepare the 2007 budget and the 2008-10 financial plan. This article examines the fundamental new directions of financial management in Switzerland. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-31 Volume: 8 Issue: 1 Handle: RePEc:oec:govkaa:5KZLKWNR46Q6 Template-type: ReDIF-Article 1.0 Author-Name: Vito Tanzi Title: The role of the state and public finance in the next generation Abstract: This article discusses the economic role of the state as it evolved during the 20th century, starting with how current tax systems developed and how fiscal termites can weaken the foundations of tax systems, examining the spending side of the government role, and speculating on future developments, particularly in the Latin American context. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-27 Volume: 8 Issue: 2 Handle: RePEc:oec:govkaa:5KZJXHSVKXVB Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Daniel Bergvall Author-Name: Ian Hawkesworth Author-Name: Valentina Kostyleva Author-Name: Matthias Witt Title: Budgeting in Russia Abstract: Russia’s budgeting procedures have been in transition since the adoption of the Budget Code in 1998. Major revisions of the Code were undertaken in 2003, 2004 and 2007. This article explores the many facets of budgeting in the Russian Federation, including budget formulation, parliamentary approval, budget execution, accounting and auditing, and financial relations between levels of government. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-58 Volume: 8 Issue: 2 Handle: RePEc:oec:govkaa:5KZJXHSHJRZR Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Joachim Wehner Author-Name: Kirsten Richter Title: Budgeting in Estonia Abstract: Since independence, Estonia has been at the forefront of institutional reform in the area of financial management. Budget formulation is divided into two distinct stages: strategic planning and preparation of the annual budget that is submitted to Parliament. This article describes key characteristics of budgeting in Estonia, including the development of the State Budget Strategy, the parliamentary process, the organisation of budget execution, and systems for accounting and auditing. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-40 Volume: 8 Issue: 2 Handle: RePEc:oec:govkaa:5KZFZSKVJ1WF Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Author-Name: Daniel Bergvall Author-Name: Ian Hawkesworth Author-Name: Rex Deighton-Smith Title: Budgeting in Australia Abstract: This review of budgeting in Australia concentrates on the national government only. The article first discusses Australia’s recent economic and fiscal performance and then focuses on the budget formulation process. After a discussion of the role of the Parliament, the article reviews various aspects of budget implementation and management. The article concludes with a special section on Australia’s efforts to eliminate “red tape” within government. This review was undertaken in September 2007; following the election of a new government in Australia in November 2007, some new policies are highlighted, encompassing budget formulation, processes, accounting and management. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-64 Volume: 8 Issue: 2 Handle: RePEc:oec:govkaa:5KZFZCN76727 Template-type: ReDIF-Article 1.0 Author-Name: Teresa Curristine Author-Name: Chung-Keun Park Author-Name: Richard Emery Title: Budgeting in Portugal Abstract: The Portuguese government has recently undertaken comprehensive structural reforms of the public sector and has successfully reduced its budget deficit. This article explores particular features of the Portuguese budget system and the proposed further reforms, including the adoption of a medium-term expenditure framework and performance budgeting. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-60 Volume: 8 Issue: 3 Handle: RePEc:oec:govkaa:5KZDH12P0B8W Template-type: ReDIF-Article 1.0 Author-Name: Richard Allen Title: Reforming Fiscal Institutions: The Elusive Art of the Budget Advisor Abstract: This article assesses the role and responsibilities of the budget advisor in developing countries and what factors make for success and failure. Since efficient budget institutions are important, the role of the budget advisor may include providing advice on institutional issues as well as on technical questions and the budget reform process itself. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-9 Volume: 8 Issue: 3 Handle: RePEc:oec:govkaa:5KZDH10HKB5H Template-type: ReDIF-Article 1.0 Author-Name: Ian Hawkesworth Author-Name: Daniel Bergvall Author-Name: Richard Emery Author-Name: Joachim Wehner Title: Budgeting in Greece Abstract: Greece is undertaking important reforms with the aim of making the budget a more modern strategic policy document. This article examines Greece’s recent economic and fiscal performance and the developments that led to the launch of the programme budgeting pilot in 2008. The article discusses the budget formulation process, the role of Parliament, and various aspects of budget implementation and management. The report concludes with a discussion of accounting, audit and accountability. Journal: OECD Journal on Budgeting Year: 2008 Pages: 1-50 Volume: 8 Issue: 3 Handle: RePEc:oec:govkaa:5KZ81GXMRH0Q Template-type: ReDIF-Article 1.0 Author-Name: George Kopits Title: The Political Economy of Fiscal Reform in Central and Eastern Europe Abstract: This article discusses fiscal reform in Central and Eastern Europe from the perspective of political economy. Following an overview of basic reform trends, the article focuses on the principal drivers and impediments to reform in the region. To conclude, the ingredients of successful reform are examined. Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-11 Volume: 8 Issue: 3 Handle: RePEc:oec:govkaa:5KSQDFMK02R7 Template-type: ReDIF-Article 1.0 Author-Name: Helio Tollini Title: Reforming the budget formulation process in the Brazilian congress Abstract: This article provides a view of the Brazilian congressional budgetary process and how it contributes to preventing the budget from effectively determining public spending. Particular elements include revenue estimation, presentation and approval of amendments, sectoral committee involvement, and institutional technical advice. Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-29 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KSM3NMMZBKD Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Budget Approval: The Role of Congress Abstract: This chapter reviews the role of the Mexican legislature in the budget process. Over the past decade, the Mexican Chamber of Deputies has become a much more active participant in the budget process. This development reflects the changes in the political system and the nature of the legislative-executive relationship. On a number of occasions, the budget process has become the focal point of conflict between the two branches. Recent reforms to the legislative budget process have provided tools to strengthen legislative oversight and have helped to some extent to clarify the respective roles of the legislature and the executive. Combined with a growing cross-party willingness to co-operate on the budget and greater emphasis on fiscal responsibility, the legislative budget process has been greatly improved. Journal: OECD Journal on Budgeting Year: 2009 Pages: 69-80 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVF5TD3 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Budget Execution and Financial Management Abstract: This chapter reviews the implementation and management of the Mexican budget. Financial management is in the midst of an ambitious agenda of reform with the overall goal of improving the quality of public service. The central concepts behind the reforms are to delegate management responsibility to programme managers and to focus greater attention on improving results. This chapter is divided into seven sections: the execution of the budget; cash management; public accounting; internal control and audit; human resource management; procurement; and the conclusion and recommendations. Journal: OECD Journal on Budgeting Year: 2009 Pages: 81-95 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVF4NMW Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Improving Accountability for Results: Performance Budgeting and Management Reforms Abstract: Mexico, like most OECD countries, is under pressure to enhance the efficiency and effectiveness of public spending. An important step in this process is to obtain objective information on the performance of programmes and agencies. Performance information allows governments to measure progress towards achieving their goals and to know what programmes and policies are working and those that are not. The majority of OECD countries are seeking to improve the development and use of performance information through performance management and budgeting reforms. These reforms aim to shift the emphasis of budgeting and management away from a focus on controlling inputs and following rules and regulations towards a focus on results. Journal: OECD Journal on Budgeting Year: 2009 Pages: 97-137 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVF3BXW Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Annex A: Programa de Mediano Plazo (PMP, the Medium-Term Programme) Abstract: The PMP is the tool created to comply with the obligation established by the 2007 reform (the Integral Fiscal Reform, IFR) to achieve 20% savings by the end of the current administration, at a rate of 5% per year. It is a programme for reducing administrative expenses and energy costs. Journal: OECD Journal on Budgeting Year: 2009 Pages: 139-140 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVDKDZR Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Annex B: Oil Revenue Management Abstract: Oil prices have been rising significantly since 2002, reaching a high of USD 145 per barrel in July 2008.1 The huge flows of revenues present an excellent opportunity for large oil exporters, providing access to fresh capital inflows that could be allocated to savings, investment, or external debt cancellation. However, oil price volatility and inefficient management of oil revenues can also generate non-desired effects. Some of the symptoms of the so-called “Dutch disease” include overheating the economy, reducing incentives to improve the tax system, and increasing pressure for exchange rate appreciation or exchange rate volatility. Journal: OECD Journal on Budgeting Year: 2009 Pages: 141-144 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVDJ6LP Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Annex C: Public Investment Evaluation System Abstract: The 2006 Budget and Fiscal Responsibility Law required the establishment of rules to ensure that investment projects are properly evaluated. The Ministry of Finance (SHCP), through its Investment Unit, manages the public investment system which is an important element for achieving better results from investment projects undertaken by the public sector. Every year the Investment Unit publishes guidelines for the preparation and presentation of the cost-benefit analysis of programmes and investment projects (Lineamientos para la elaboración y presentación de los análisis costo y beneficio de los programas y proyectos de inversión). Journal: OECD Journal on Budgeting Year: 2009 Pages: 145-146 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVDGRHC Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Annex D: Impact Evaluation of the Social Development Programme on Cement Floors Abstract: Between 2000 and 2005, the Mexican State of Coahuila implemented the social programme called Piso Firme. Its main objective was to replace mud floors with cement ones to improve the quality of life of vulnerable households living in marginal areas. Because the programme was so successful with 34 000 beneficiaries in Coahuila, it was extended to the national level to cover more than 300 000 households. Its success even generated the implementation of a national strategic goal: the eradication of dirt floors by the end of 2012. Journal: OECD Journal on Budgeting Year: 2009 Pages: 147-148 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVDFL37 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Annex E: Requirements on Sub-National Governments as a Result of the Recent Fiscal Reforms Abstract: Strengthening local auditing: The technical capability and independence of state legislature audit organs is to be strengthened (head audit officers are to be appointed by a majority of two-thirds of legislators and for seven-year terms). State audit organs are also bound by principles of impartiality and legality (Mexican Constitution, Articles 116 and 122). Journal: OECD Journal on Budgeting Year: 2009 Pages: 149-149 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVDDF48 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: References Journal: OECD Journal on Budgeting Year: 2009 Pages: 151-156 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVDBLHB Template-type: ReDIF-Article 1.0 Author-Name: Barry Anderson Title: The changing role of parliament in the budget process Abstract: Legislatures require reliable, unbiased information to be able to participate constructively in formulating the budget. This article explores the value of an independent budget capacity located in the legislature for expanding parliament’s role in budgeting and for holding the executive accountable. Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-11 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KSM3NMH0C40 Template-type: ReDIF-Article 1.0 Author-Name: Paul L. Posner Author-Name: Shin Kue Ryu Author-Name: Ann Tkachenko Title: Public-private partnerships: The relevance of budgeting Abstract: This article examines the budgetary implications of public-private partnerships (PPPs) and how to strengthen budgetary review, budget treatment, accounting and assessment of PPPs. Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-26 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KSM3NMDL4MW Template-type: ReDIF-Article 1.0 Author-Name: Marc Robinson Title: Accrual budgeting and fiscal policy Abstract: Can an accrual budgeting system – a system in which budgetary spending authorisations to line ministries are formulated in accrual terms – serve the needs of good fiscal policy? If so, how must such a system be designed? This article addresses these questions and also considers the case for reformulating fiscal policy in terms of accrual rather than cash aggregates. Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-29 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KSM3NM22ZF0 Template-type: ReDIF-Article 1.0 Author-Name: Philippa Venning Title: Impact of budget support on accountabilities at the local level in Indonesia Abstract: A thorough analysis of existing governance and accountability structures in a decentralised country is necessary before deciding to deliver development assistance directly to the regional level. This article examines the mechanism of donor-provided budget support at the local level in Indonesia and its potential impact on accountability structures. Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-29 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KSM3NLWKQ43 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Acronyms and Terms Journal: OECD Journal on Budgeting Year: 2009 Pages: 9-11 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS77H0XZGXX Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Executive Summary and Recommendations Abstract: Over the past decade, Mexico has undergone significant economic and political reform. This period has witnessed important improvements in the health of public finances. The government’s narrow measure of the budget deficit has been below 1% of GDP for the past five years (2003-08). Furthermore, the public sector borrowing requirement – the broader definition of budget deficit1 – has been below 3% of GDP for the same period. Although these improved fiscal balances have been aided by higher revenues as a result of significant increases in oil prices, Mexico’s recent public finances have clearly reflected an era of fiscal responsibility. This improved fiscal situation should place Mexico in a better position to withstand the current global economic crisis. Journal: OECD Journal on Budgeting Year: 2009 Pages: 13-22 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVFC7WF Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Fiscal Performance and Challenges Abstract: Over the past decade, Mexico has made significant improvements in its fiscal performance by implementing important reforms to establish macroeconomic and financial stability, to open the economy to trade and investment, and to change the political environment. The prudent fiscal policies pursued by the Mexican government have resulted in strong fiscal performance. Albeit aided by higher oil prices, these policies have successfully lowered public sector debt and reduced the budget deficit to 3% of GDP or below for the past five years (2003-08).1 Economic growth has improved over the past decade, although the economy is not expanding rapidly enough to make living standards equivalent to richer OECD countries. Journal: OECD Journal on Budgeting Year: 2009 Pages: 23-43 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVF8WJB Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Budget Formulation Abstract: Over the past decade, the evolution of budgeting in Mexico has been driven by two main trends. First, in order to avoid crises like those of the 1980s and 1990s, the government has been working on developing an institutional framework for stable and sustainable fiscal management. Second, the country has completed the process of transition from a political system where one party dominated to a competitive multi-party system. Journal: OECD Journal on Budgeting Year: 2009 Pages: 45-68 Volume: 9 Issue: 1 Handle: RePEc:oec:govkaa:5KS75NVF78MP Template-type: ReDIF-Article 1.0 Author-Name: Stuart Adam Author-Name: Antoine Bozio Title: Dynamic scoring Abstract: Dynamic scoring – taking full account of all the economic effects of policies when estimating their budgetary effects – is almost self-evidently attractive. But it is formidably difficult to achieve. This paper assesses the key conceptual and practical challenges it poses and considers the pros and cons of adopting it. The objective should be to provide more useful information while being robust to the political debate. Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-26 Volume: 9 Issue: 2 Handle: RePEc:oec:govkaa:5KS70MG592WK Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Author-Name: Ian Hawkesworth Author-Name: Hyun Deok Choi Title: Budgeting in Indonesia Abstract: This article discusses Indonesia’s economic and fiscal performance following the 1997/98 financial crisis and the transition to democracy, as well as the budget formulation process and the role of Parliament. Aspects of budget implementation are discussed throughout the article. Jón R. Blöndal, Ian Hawkesworth and Hyun-Deok Choi Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-31 Volume: 9 Issue: 2 Handle: RePEc:oec:govkaa:5KS72WV89P48 Template-type: ReDIF-Article 1.0 Author-Name: Peter J. Wallison Title: Fixing fair value accounting Abstract: The concept of fair value accounting was introduced in 1993 to make financial statements easier to compare and balance sheets more reflective of real values. This article discusses the true consequences of fair value accounting and its impact on the stability of financial institutions. By Peter J. Wallison, American Enterprise Institute Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-8 Volume: 9 Issue: 2 Handle: RePEc:oec:govkaa:5KS72WVJ5LMW Template-type: ReDIF-Article 1.0 Author-Name: Daniel Tarschys Title: The challenge of decremental budgeting Abstract: At the start of the decremental decade of the 1980s, governments encountered many difficulties in making ends meet. This article discusses some of the problems of post-expansive stagnation and the merits of certain techniques such as indexing, global norms, decentralising hard choices and the well-balanced package. Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-9 Volume: 9 Issue: 2 Handle: RePEc:oec:govkaa:5KSB4SP1CC8P Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Budgeting for entitlements Abstract: An entitlement is a provision of law that establishes a legal right to public funds. In most OECD countries, entitlements were the principal growth area of public expenditure from the mid 1950s to the mid 1980s. This article discusses budgeting for entitlements under two rather different conditions: the expansion of this category of expenditure during the quarter century after World War II, and cutback and “status quo” budgeting during the decade since the first oil shock.By Allen Schick, University of Maryland, United States Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-13 Volume: 9 Issue: 2 Handle: RePEc:oec:govkaa:5KSB4SP85WD1 Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Budgeting for fiscal space Abstract: Fiscal space refers to the financial resources available to a government for policy initiatives through the budget and related decisions. This article reviews the factors that contribute to the shrinkage of fiscal space, considers methods for protecting or enlarging it, and reflects on how budgeting may be recast into a process for explicitly allocating scarce fiscal space. Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-18 Volume: 9 Issue: 2 Handle: RePEc:oec:govkaa:5KSB4SSM56Q2 Template-type: ReDIF-Article 1.0 Author-Name: Ruth Carlitz Author-Name: Paolo de Renzio Author-Name: Warren Krafchik Author-Name: Vivek Ramkumar Title: Budget transparency around the World: Results from the 2008 open budget survey Abstract: The movement for greater fiscal transparency has been gaining momentum in recent years. To contribute to these efforts, the International Budget Partnership (IBP) developed the Open Budget Survey in 2006. The 2008 survey finds that the state of budget transparency around the world is deplorable, although a number of countries have improved their performance over the past two years. This article discusses the results of the 2008 survey and ways of improving budget transparency. Journal: OECD Journal on Budgeting Year: 2009 Pages: 1-17 Volume: 9 Issue: 2 Handle: RePEc:oec:govkaa:5KS72WFW0ZZQ Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Joachim Wehner Author-Name: James Sheppard Author-Name: Valentina Kostyleva Author-Name: Barbara Duzler Title: Budgeting in Latvia Abstract: At the time of this review, fiscal policy in Latvia was in considerable turmoil as a consequence of the world-wide financial crisis. Thus, some of the usual budget rules and procedures were not followed during budget preparation 2009 and 2010 and budget execution 2009. This review examines the usual budget rules and procedures that were followed until 2008 and also the major institutional revisions that were discussed in 2009. The instability of fiscal policy is a major problem for Latvia and there is an urgent need to bring more stability to the budget process. Journal: OECD Journal on Budgeting Year: 2010 Pages: 185-227 Volume: 9 Issue: 3 Handle: RePEc:oec:govkaa:5KMH6DMR9ZVK Template-type: ReDIF-Article 1.0 Author-Name: Ian Hawkesworth Author-Name: Richard Emery Author-Name: Joachim Wehner Author-Name: Kristin Saenger Title: Budgeting in Bulgaria Abstract: Bulgaria’s budget management has seen a series of structural and procedural reforms, including in budget execution, treasury functions, internal audit, and programme and medium-term budgeting. This article discusses the use of modern budgeting techniques in Bulgaria such as top-down budgeting, multi-year budgeting perspectives and the use of performance information in the budget process, and makes recommendations for budget formulation, the role of Parliament, budget execution and management (including organisational questions and the role of municipalities), and accounting and audit. Journal: OECD Journal on Budgeting Year: 2010 Pages: 133-183 Volume: 9 Issue: 3 Handle: RePEc:oec:govkaa:5KMH6DN6N4D7 Template-type: ReDIF-Article 1.0 Author-Name: Barry Anderson Author-Name: James Sheppard Title: Fiscal futures, institutional budget reforms, and their effects: What can be learned? Abstract: Long-term fiscal projections provide a basis to discuss the sustainability of current public policies over an extended period (ten years or more) against select fiscal indicator(s). They do so by modelling future government expenditures and revenues based upon a number of explicit demographic, macroeconomic, microeconomic, and other assumptions. Such projections have been considered best practice for budget/ fiscal transparency for nearly a decade, yet their use is still limited to a relatively small number of industrialised countries. This article extrapolates evidence from 12 OECD countries of the role of fiscal projections in balancing political pressures for short-term spending against fiscal pressures and risks over an extended time horizon. The article makes recommendations concerning three aspects of fiscal projections: their frequency; their analytical quality; and their institutional quality. Journal: OECD Journal on Budgeting Year: 2010 Pages: 7-117 Volume: 9 Issue: 3 Handle: RePEc:oec:govkaa:5KMH6DNL056G Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Crisis Budgeting Abstract: Budgeting is fundamentally altered, if only temporarily, by pressures that overwhelm established policies and practices. This article discusses conventional and non-conventional responses to crisis, and how crisis impacts on the budget process. Just as crisis has mobilised governments to take global actions that spill beyond national boundaries, the aftermath of crisis will spur them to harmonise and integrate budget policies that affect the international financial system. Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-14 Volume: 9 Issue: 3 Handle: RePEc:oec:govkaa:5KMHHK9QF2ZN Template-type: ReDIF-Article 1.0 Author-Name: Zsolt Darvas Title: The Impact of the Crisis on Budget Policy in Central and Eastern Europe Abstract: This paper describes the particular impacts of the financial and economic crisis on Central and Eastern European (CEE) countries; studies pro-cyclicality of fiscal policies; discusses the impact of the crisis on fiscal policy; and takes a look at the policy response of various governments. After drawing some lessons for fiscal policy from previous emerging market crises, the paper concludes with some thoughts on the appropriate policy response from a more normative perspective. The key message of the paper is that the crisis should be used as an opportunity to introduce reforms to avoid future pro-cyclical fiscal policies, to increase the quality of budgeting and to increase credibility. These reforms should include fiscal responsibility laws comprising medium-term fiscal frameworks, fiscal rules and independent fiscal councils. When fiscal consolidation is accompanied by fiscal reforms that increase credibility, non-Keynesian effects may offset the contraction caused by the consolidation to some extent. JEL classification: C32, E62, H60 Keywords: Crisis, budget policy, fiscal policy, Central and Eastern Europe, CEE, CESEE Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-42 Volume: 10 Issue: 1 Handle: RePEc:oec:govkaa:5KM7S5M3NLVD Template-type: ReDIF-Article 1.0 Author-Name: Joaquim Miranda Sarmento Title: Do Public-Private Partnerships Create Value for Money for the Public Sector? The Portuguese Experience Abstract: Over the last few decades, public-private partnerships have been increasingly used by governments around the world to finance and manage complex operations. Doubts about their efficiency have been raised, however. Criticism of public-private partnerships reflects the fact that governments tend to use them as “off-budget” operations, to avoid fiscal constraints. Do they generate “value for money” to the public sector? The literature is less than unanimous. How one assesses value for money in these types of arrangements has become extremely important for public managers. Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-27 Volume: 10 Issue: 1 Handle: RePEc:oec:govkaa:5KM8XX3FGWS5 Template-type: ReDIF-Article 1.0 Author-Name: Jouke de Vries Title: Is New Public Management Really Dead? Abstract: This article, originally presented as a keynote speech at the June 2009 meeting of the OECD Working Party of Senior Budget Officials, explores the state of new public management from the perspective of current political theory and presents relevant findings from a 2009 OECD comparative study, “Value for Money”. JEL classification: H830. Keywords: New public management; NPM; public administration; Dunleavy; public governance reform; value for money. Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-5 Volume: 10 Issue: 1 Handle: RePEc:oec:govkaa:5KM8XX3MP60N Template-type: ReDIF-Article 1.0 Author-Name: Marvin Phaup Author-Name: Charlotte Kirschner Title: Budgeting for disasters: Focusing on the good times Abstract: Some ways of budgeting for disasters have the potential to increase welfare by increasing national savings, reducing exposure to risk and promoting mitigation prior to a loss. Those ways can also contribute to aggregate fiscal stability over the long term. The power of budgeting, however, can be misdirected to increase losses and lead to fiscal instability. This paper describes the potential for gain from alternative budgetary treatments of policies aimed at reducing the effects on consumption of random shocks to income and wealth. It identifies a critical difference between alternatives: budgetary recognition of expected costs of relief and recovery before the loss event. We classify those different methods as ex ante and ex post budgeting. We also consider some budgetary mechanisms that can promote effective recognition and constrain opportunistic behavior by elected officials. Finally, this paper describes related budgetary practices in some OECD countries. Many have instituted policies consistent with ex ante budgeting, but we have insufficient information to determine their effectiveness. Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-24 Volume: 10 Issue: 1 Handle: RePEc:oec:govkaa:5KMH5H6TZRNS Template-type: ReDIF-Article 1.0 Author-Name: Gerhard Steger Title: Austria's budget reform: How to create consensus for a decisive change of fiscal rules Abstract: In December 2007 and December 2009, Austria’s Federal Parliament decided on a far-reaching, comprehensive budget reform package. The introduction of a legally binding medium-term expenditure framework, of accrual budgeting and accounting as well as performance budgeting marks a decisive change, not only in steering the budget, but even more so in the Austrian administrative and political culture. Both legislative decisions were finally taken unanimously. This article describes the respective change management and gives an overview of the main Austrian reform elements. Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-14 Volume: 10 Issue: 1 Handle: RePEc:oec:govkaa:5KMH5HCRX924 Template-type: ReDIF-Article 1.0 Author-Name: Murray Petrie Author-Name: Jon Shields Title: Producing a Citizens' Guide to the Budget: Why, What and How? Abstract: As part of the growing search for more transparency and accountability in government finance, this article suggests guidelines for the production and dissemination of a citizens’ guide to the budget. Examples from a variety of countries help to illustrate why governments should publish an annual guide, what the contents and characteristics of a good guide should be, and how such a guide should be made accessible. JEL classification: H500, H600. Keywords: effective public accountability, transparent budgeting, open budgets, fiscal transparency, civil society, citizen participation, public oversight, public debate, access to information. Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-14 Volume: 10 Issue: 2 Handle: RePEc:oec:govkaa:5KM7GKWG2PJH Template-type: ReDIF-Article 1.0 Author-Name: John P. Burns Author-Name: Zhou Zhiren Title: Performance Management in the Government of the People's Republic of China: Accountability and Control in the Implementation of Public Policy Abstract: This article examines how the Chinese government came to endorse the concept of performance management, and analyses the experiments with performance management since the early 1990s (mainly at the local level). The incentives are examined, especially the performance-based reward and promotion system. The article discusses China’s experience with performance management in various sectors, including organisational restructuring and human resource management in the civil service, performance and results management and the “objective responsibility system”, and the attempts to improve accountability and performance in the delivery of public services. Citizen participation in performance management is also examined, and case studies of local practice. Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-28 Volume: 10 Issue: 2 Handle: RePEc:oec:govkaa:5KM7H1RVTLNQ Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Title: Budgeting in the Philippines Abstract: This profile offers a general overview of the Philippine system of budgeting at national level. Special characteristics of the Philippine budget process are examined, such as a commitment to fiscal discipline and the national planning function. The three steps of the annual budget formulation cycle are described: the development of economic assumptions and revenue forecasts; the use of a medium-term expenditure framework to assess the continuing costs of existing programmes; and identifying the resultant “fiscal space” through the Paper on Budget Strategy. The process for allocating resources is then described, including the “Budget Call”, the submission and review of proposals, the role of the central ministry and the line ministries, and finally the role of Congress, constitutional restrictions, and the nature of executive-legislative relations. Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-22 Volume: 10 Issue: 2 Handle: RePEc:oec:govkaa:5KM7RQPF57HB Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Post-Crisis Fiscal Rules: Stabilising Public Finance while Responding to Economic Aftershocks Abstract: This article discusses the economic crisis that has ravaged the budgets of many developed countries, and whether conditions have sufficiently stabilised to permit governments to introduce next-generation fiscal rules. The article examines a series of issues that may arise as governments re-engineer or introduce fiscal rules. Discussion of each issue begins with lessons from existing rules and concludes with observations on the design of new rules. The final section considers the role of budgeting in designing and implementing fiscal rules. Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-18 Volume: 10 Issue: 2 Handle: RePEc:oec:govkaa:5KM7RQPKQTS1 Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Valentina Kostyleva Author-Name: Colin Forthun Author-Workplace-Name: OECD Author-Name: Jutta Albrecht Author-Name: Ragnar Olofsson Title: Budgeting in Moldova Abstract: The institutional features of the budget process in Moldova are in a permanent flux, because of ambitious reform programmes that have been adopted in recent years and that are planned for the future. This article examines the Moldovan budget formulation process, the role of parliament, budget execution and budget discipline, the supply side of the budget process (public administration and service delivery), and accounting and audit. JEL classification: H610. Keywords: budgeting, Moldova, financial management, budget preparation, parliamentary budget process, budgetary discipline Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-53 Volume: 10 Issue: 3 Handle: RePEc:oec:govkaa:5KM36KL2K3HF Template-type: ReDIF-Article 1.0 Author-Name: Ian Hawkesworth Author-Name: Richard Emery Author-Name: Joachim Wehner Author-Name: Jannick Saegert Title: Budgeting in Lithuania Abstract: This report covers the budget process in Lithuania. It discusses the four phases in separate sections: budget preparation, legislative approval, budget execution, and accounting and audit. Each section ends with a list of recommendations. The new strategic planning process should strengthen the policy focus of the budget at the level of the line ministries and could be accompanied by a more robust medium.term fiscal framework. All public.private partnerships (PPPs) should be subject to approval by the Ministry of Finance, and municipal use of PPPs should be closely monitored. Parliament operates a well.designed and orderly review process but parliamentary involvement can be further developed. Budget execution is based on sound rules and procedures, and the full development of the programme structure could be accompanied by more flexibility. The shift towards accruals in accounting and financial reporting will enhance transparency and should strengthen fiscal discipline. JEL classification: H610. Keywords: budgeting, performance management, medium.term expenditure framework, MTEF, financial management, budget preparation Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-36 Volume: 10 Issue: 3 Handle: RePEc:oec:govkaa:5KM36KL2MS7B Template-type: ReDIF-Article 1.0 Author-Name: Paul L. Posner Title: Mandates: Fiscal Accountability Issues Abstract: National leaders under pressure are often tempted to consider shifting costs to other levels of government and to satisfy new demands for public services by passing mandates and costs to other levels of governments to finance new programmes. These new mandates take a variety of forms but have one central feature: they permit the national government leaders to claim credit without paying for the costs of their own initiatives. This article examines intergovernmental relationships and the various forms of mandates including direct-order mandates, grants, pre-emptions, and tax policy. The article discusses the arguments for mandates, trends in their use, and reforms to curb them. The roles of agency cost-benefit analysis and legislative information and deliberation are particularly important. JEL classification: H200, H300, H540, H710, H810. Keywords: intergovernmental relationships, mandates, grants, pre-emptions, tax policy, regulation, fiscal accountability, legislative action Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-22 Volume: 10 Issue: 3 Handle: RePEc:oec:govkaa:5KM4D786RFBT Template-type: ReDIF-Article 1.0 Author-Name: Sevil Çatak Author-Name: Canan Çilingir Title: Performance Budgeting in Turkey Abstract: The effective and efficient use of public resources has vital importance for Turkey. To serve this purpose, public financial management was reformed and a performance budgeting system was launched in Turkey. This article assesses the current situation of the implementation of the performance budgeting system in Turkey from the perspective of public administrations under the general budget. It examines all stages of the performance budgeting process (strategic planning, performance programming, budgeting, accountability reporting and auditing) as well as all elements of the system (legislation, methodology, co.ordination, guidance, ownership, implementation, and factors affecting the process). It identifies the strengths of the system and the problems faced. JEL classification: H110, H610. Keywords: performance budgeting, budgeting systems, strategic planning, performance programming, accountability Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-39 Volume: 10 Issue: 3 Handle: RePEc:oec:govkaa:5KM4D794L142 Template-type: ReDIF-Article 1.0 Author-Name: Nick Malyshev Title: A Primer on Regulatory Budgets Abstract: A new and novel approach to controlling regulatory costs is the concept of the regulatory budget. This concept would require that governments account for regulatory expenditures in a similar way to fiscal expenditures. This article argues that there are analogies between fiscal and regulatory budgets as they both divert resources from the private sector, albeit by different policy instruments. Given that budgeting is universally used to manage fiscal resources, the article outlines the pros and cons of developing regulatory budgets to manage regulatory resources. JEL classification: H300, H610. Keywords: government regulation, budgets, policy instruments, public expenditures, budgeting Journal: OECD Journal on Budgeting Year: 2010 Pages: 1-10 Volume: 10 Issue: 3 Handle: RePEc:oec:govkaa:5KM4S38FTVWK Template-type: ReDIF-Article 1.0 Author-Name: Zsolt Darvas Author-Name: Valentina Kostyleva Title: Fiscal and Monetary Institutions in Central, Eastern and South-Eastern European Countries Abstract: This article studies the role of fiscal and monetary institutions in macroeconomic stability and budgetary control in central, eastern and south-eastern European countries (CESEE) in comparison with other OECD countries. CESEE countries tend to grow faster (or at least tended to grow faster before the crisis) and have more volatile output than non-CESEE OECD countries, which has implications for macroeconomic management: better fiscal and monetary institutions are needed to avoid pro-cyclical policies. The article develops a Budgetary Discipline Index to assess whether good fiscal institutions underpin good fiscal outcomes. Even though most CESEE countries have low scores, the debt/GDP ratios declined before the crisis. This was largely the consequence of a very favourable relationship between the economic growth rate and the interest rate, but such a favourable relationship is not expected in the future. Econometric estimations confirm that better monetary institutions reduce macroeconomic volatility and that countries with better budgetary procedures have better fiscal outcomes. All these factors call for improved monetary institutions, stronger fiscal rules and better budgetary procedures in CESEE countries. Journal: OECD Journal on Budgeting Year: 2011 Pages: 147-185 Volume: 11 Issue: 1 Handle: RePEc:oec:govkaa:5KG9QXZ12GZQ Template-type: ReDIF-Article 1.0 Author-Name: Philippe Burger Author-Name: Ian Hawkesworth Title: How To Attain Value for Money: Comparing PPP and Traditional Infrastructure Public Procurement Abstract: Governments increasingly use public-private partnerships (PPPs) to pursue value for money. However, value for money is (or at least, should be) the driving force behind traditional infrastructure procurement. Therefore, any project, whether it is a PPP or a traditionally procured project, should be undertaken only if it creates value for money. It seems that the choice between using a PPP or traditional procurement should be simple: governments should prefer the method that creates the most value for money. However, in practice the value-for-money objective is very often blurred, and the choice between using a PPP and traditional infrastructure procurement may be skewed by factors other than value for money. Some factors skew choice towards traditional procurement, while others skew it towards PPPs. Drawing on the results of a questionnaire sent to all OECD and some non-OECD countries, this article considers the various factors that may skew this choice and thereby undermine the pursuit of value for money. The results of the questionnaire point especially to differences in the range and complexity of the ex ante and ex post value-for-money tests that some governments apply to PPPs and traditionally procured infrastructure projects. However, accounting standards, political preferences for or against PPPs, and the strength of public sector unions also play, among others, a role in skewing incentives and affecting choice in some countries. The findings of the questionnaire are augmented by four case studies setting out the procurement processes for PPPs and traditional infrastructure procurement in France, Germany, Korea and the United Kingdom. With the focus on the attainment of value for money and by exploring the issues raised in the responses to the questionnaire, this article sets out some good practices that will align the requirements for these two types of procurement and remove possible perverse incentives that favour one over the other. JEL classification: H400, H440, H540, H570 Keywords: value for money, public-private partnerships, PPPs, traditional public procurement, infrastructure, public choice Journal: OECD Journal on Budgeting Year: 2011 Pages: 91-146 Volume: 11 Issue: 1 Handle: RePEc:oec:govkaa:5KG9ZC0PVQ6J Template-type: ReDIF-Article 1.0 Author-Name: Ian Hawkesworth Author-Name: Lisa von Trapp Author-Name: David Fjord Nielsen Title: Performance Budgeting in Poland: An OECD Review Abstract: Poland currently has a traditional budget system that is primarily based on organisational units and control of inputs. But Poland is in the process of introducing a new budget system, the performance-based budgeting system, in order to improve public finance management and strengthen allocative and operational efficiency, multi-year budgeting, and transparency and accountability. Poland faces hard choices on how to harness the advantages of performance management while minimising the costs in terms of organisational capacity and funding. This article assesses the reform process to date, examines cross-cutting institutional, technical, and strategic issues, and provides a series of recommendations for each stage of the budget process: budget preparation, approval and execution, and reporting, accounting and audit. JEL classification: H500, H610, H830 Keywords: Poland, budget process, performance budgeting system, performance-based budget, PBB, public finance management, allocative efficiency, operational efficiency, multi-year budgeting, transparency, accountability Journal: OECD Journal on Budgeting Year: 2011 Pages: 7-57 Volume: 11 Issue: 1 Handle: RePEc:oec:govkaa:5KGG8R57TF34 Template-type: ReDIF-Article 1.0 Author-Name: Shulian Deng Author-Name: Jun Peng Title: Reforming the Budgeting Process in China Abstract: Despite many reforms implemented in China’s public financial management over the past ten years, China’s public budget still exhibits a glaring lack of accountability, most evident in the gap between the adopted budget and the final budget. This article examines the role played by public budgeting in ensuring good governance, and establishes a framework for how the legislature ensures accountability in the public budgeting process. The existing problems in the Chinese public budgeting process are analysed, and suggestions are made for reforming the budgeting process based on the outlined framework. Journal: OECD Journal on Budgeting Year: 2011 Pages: 75-89 Volume: 11 Issue: 1 Handle: RePEc:oec:govkaa:5KGGC0ZQJ8F0 Template-type: ReDIF-Article 1.0 Author-Name: Fatih Kaya Author-Name: Selihan Yýlar Title: Fiscal Transformation in Turkey over the Last Two Decades Abstract: Turkey has made significant progress over the last two decades regarding fiscal consolidation and a strong reform of fiscal policy. The highly fragile country of the 1990s, whose primary fiscal concern was to sustain its public finances in the short term, has become a successful transition model. Now the authorities are discussing the adoption of fiscal rules as a new anchor in public finances. A draft Fiscal Rule Law was prepared and submitted to the parliament in 2010. This article examines the fiscal policy framework of Turkey in the 1990s and 2000s and its striking economic and social consequences. The article also examines the attempts to adopt fiscal rules for Turkey. Journal: OECD Journal on Budgeting Year: 2011 Pages: 59-74 Volume: 11 Issue: 1 Handle: RePEc:oec:govkaa:5KGGC0ZR42G6 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Country notes Abstract: Each country note has the following structure: Section 1 gives a brief overview of the main economic developments in recent years in the relevant country including real GDP, fiscal balance and gross debt figures. This presentation is mainly based on the “OECD Economic Outlook No. 88”, OECD Economic Outlook: Statistics and Projections (database) (OECD, 2010a), and uses OECD definitions of general government balance and gross debt which may differ from national definitions (see Box 2.1). Section 2 presents the government’s fiscal consolidation strategies as manifested in fiscal balance and gross debt targets over the medium term, the size of the consolidation, and the composition of expenditures and revenues. Section 2 is based on information from the national authorities (or publicly available information) which may use other definitions of fiscal balance and gross debt than the OECD in Section 1. For example, most EU countries have reported such figures on a Maastricht basis. Major consolidation measures are given in Section 3, quantified to the largest extent possible in local currencies and current prices annually. Expenditure measures are split between operational and programme measures and other initiatives. Revenue measures are listed without categories. Updates and additional consolidation measures may have been adopted in member countries after the data collection ended in November/December 2010, but are outside the scope of this analysis. Table 1 summarises the government’s specific consolidation measures and their impact. The impact is given in per cent of nominal GDP, calculated by the OECD Secretariat by using nominal forecasts of GDP from the “OECD Economic Outlook No. 88”, OECD Economic Outlook: Statistics and Projections (database) (OECD, 2010a). Eventual pension reforms are also included in this section. Section 4 provides recent or planned institutional reforms. Table 2 summarises the government’s fiscal consolidation plan as presented in Section 2 and corresponding figures. Journal: OECD Journal on Budgeting Year: 2011 Pages: 69-213 Volume: 11 Issue: 2 Handle: RePEc:oec:govkaa:5KG869H4T8LX Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Fiscal consolidation: targets, plans and measures Abstract: This chapter discusses OECD member countries’ consolidation plans as of November/December 2010. The time frame for the plans ranges from 2009 to 2015. The chapter analyses current fiscal positions and announced fiscal strategies, consolidation plans, and the expenditure and revenue measures for 30 OECD member countries. Journal: OECD Journal on Budgeting Year: 2011 Pages: 15-67 Volume: 11 Issue: 2 Handle: RePEc:oec:govkaa:5KG869H4W5F6 Template-type: ReDIF-Article 1.0 Author-Name: Keith Mackay Title: The Performance Framework of the Australian Government, 1987 to 2011 Abstract: This article analyses the performance frameworks adopted by successive Australian governments since 1987. One highlight was a formal evaluation strategy managed by the Department of Finance to support high-quality policy advice and budget decision making. The replacement of this strategy by a decentralised system of performance indicators is also discussed, together with the quality of government decision making. Lessons for other countries are also highlighted. Journal: OECD Journal on Budgeting Year: 2011 Pages: 1-48 Volume: 11 Issue: 3 Handle: RePEc:oec:govkaa:5KG3NHLCQDG5 Template-type: ReDIF-Article 1.0 Author-Name: Christine Wong Title: The Fiscal Stimulus Programme and Public Governance Issues in China Abstract: China introduced the largest stimulus package in the world in late 2008, in the wake of the global financial crisis. China was also the first major economy in the world to emerge from the crisis. After a brief though sharp downturn in 2008, the Chinese economy recovered and grew by 8.7% in 2009 and by 10.4% in 2010. This article discusses the fiscal stimulus measures adopted in China in terms of their substantive composition, as well as the decision-making processes and implementation mechanisms. It also discusses some of the challenges encountered. Journal: OECD Journal on Budgeting Year: 2011 Pages: 1-22 Volume: 11 Issue: 3 Handle: RePEc:oec:govkaa:5KG3NHLJQRJL Template-type: ReDIF-Article 1.0 Author-Name: George Kopits Title: Independent Fiscal Institutions: Developing Good Practices Abstract: This article presents an overview of independent fiscal institutions in OECD member countries, outlining their principal common features as well as country-specific attributes and functions, and flags the challenges they face in the surveillance of public finances. The case of the short-lived Fiscal Council in Hungary is discussed, with a comparison to the recently established Office for Budget Responsibility in the United Kingdom. The article draws upon the experience accumulated so far to propose internationally accepted good practices in this area. JEL classification: H610, H680 Keywords: surveillance of public finances, independent fiscal institutions, fiscal council, parliamentary budget office, office for budget responsibility, oversight of fiscal policy, Hungary, United Kingdom Journal: OECD Journal on Budgeting Year: 2011 Pages: 1-18 Volume: 11 Issue: 3 Handle: RePEc:oec:govkaa:5KG3PDGCPN42 Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Repairing the Budget Contract between Citizens and the State Abstract: This article argues that the budget is essentially a contract between citizens and the state, and that the contract is in a great state of disrepair. The ongoing debate and action in OECD countries should focus on post-crisis revenue and expenditure policies in order to repair this contract. The combination of fiscal stress, high expectations and citizen mistrust, however, greatly complicates the task. JEL classification: A130, H500, H600 Keywords: budget as contract, citizen expectations, citizen participation in government, trust in government, sustainable revenue and expenditure policies, accountability Journal: OECD Journal on Budgeting Year: 2011 Pages: 1-27 Volume: 11 Issue: 3 Handle: RePEc:oec:govkaa:5KG3PDGCTC8V Template-type: ReDIF-Article 1.0 Author-Name: Philippe Burger Author-Name: Marina Marinkov Title: Fiscal rules and regime-dependent fiscal reaction functions: The South African case Abstract: This article argues the case for a policy of “anchored flexibility” in the form of a flexible fiscal rule that allows for the pursuit of economic stability but always anchors that pursuit in fiscal sustainability. The rule is explicitly structured to be simple and is designed in analogy to the inflation-targeting framework. The article heeds the warning that consistently forecasting the output gap with any degree of precision is quite difficult, if not impossible, and thus proposes a target band for the deficit, instead of point targets for the overall deficit and the structural budget balance. To ensure fiscal sustainability over and above the contribution of the deficit rule, the article also proposes a band for the debt/GDP ratio. This debt rule acts as a negative feedback rule that stipulates the adjustments required in the deficit, should the actual debt/GDP ratio move outside the stipulated band. Since the government needs to change revenue and expenditure in order to change the deficit, the article then explores empirically whether and with how much revenue and expenditure in South Africa changed to maintain fiscal sustainability. More specifically the article explores various models of the fiscal reaction function to illuminate government behaviour in South Africa. These models consider how the deficit, expenditure and different types of revenue reacted to the debt/GDP ratio and the output gap to ensure fiscal sustainability. Lastly, the article considers measures that could enhance the automatic stabilisers, while simultaneously allowing for the maintenance of fiscal sustainability in the medium term. Journal: OECD Journal on Budgeting Year: 2012 Pages: 1-29 Volume: 12 Issue: 1 Handle: RePEc:oec:govkaa:5K9CZXJTH7TG Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Valentina Kostyleva Author-Name: Barbara Duzler Author-Name: Ragnar Olofsson Title: Budgeting in Montenegro Abstract: This article examines the budget process in Montenegro. After discussing some general legal, political and economic characteristics of the country, recent institutional reforms are surveyed. The section on the budget formulation process pays special attention to the budget structure and classification, the annual budget preparation cycle, medium-term planning, long-term fiscal sustainability, the organisation of the Ministry of Finance, and the funding of local government. Section 3 addresses the parliamentary approval process, including the role of the budget committee, the annual parliamentary budget cycle, and the impact of Parliament. Section 4 focuses on budget execution, in particular the organisation of the executive process, cash management, and reallocation. Section 5 looks at the supply side of the budget process – public administration and service delivery by the central government as well as by local governments – and at public procurement, public employment, the civil service, and the public enterprise sector. Section 6 examines accounting and audit, including financial reporting, internal audit and external audit. Journal: OECD Journal on Budgeting Year: 2012 Pages: 1-44 Volume: 12 Issue: 1 Handle: RePEc:oec:govkaa:5K9CZXJZBW6G Template-type: ReDIF-Article 1.0 Author-Name: David Barrows Author-Name: H. Ian MacDonald Author-Name: A. Bhanich Supapol Author-Name: Olivia Dalton-Jez Author-Name: Simone Harvey-Rioux Title: Public-private partnerships in Canadian health care: A case study of the Brampton Civic Hospital Abstract: In recent years, the cost of delivering health care in developed and developing countries has been rising exponentially. Governments around the world are searching for alternative mechanisms to reduce costs while increasing the capacity of social programmes with significant investments in infrastructure. A number of jurisdictions have begun to utilise public-private partnerships (PPPs) as a means of achieving these objectives. The use of PPPs in the Canadian health system is a relatively new phenomenon. Generally, the success of PPP projects is evaluated on the basis of the qualitative outcomes of the project, most commonly in a value-for-money analysis. Journal: OECD Journal on Budgeting Year: 2012 Pages: 1-14 Volume: 12 Issue: 1 Handle: RePEc:oec:govkaa:5K9CZXKBCK9W Template-type: ReDIF-Article 1.0 Author-Name: Aart de Geus Author-Workplace-Name: OECD Author-Name: Dirk-Jan Kraan Title: The Dutch fiscal consolidation package in a comparative perspective Abstract: The pace of recovery from the financial crisis is uneven across the OECD area. This article discusses the current economic situation in OECD countries and gives an overview of the consolidation efforts currently undertaken by many governments, including the Netherlands. After exploring why fiscal deficits arise and which factors are conducive to successful consolidation, the article concludes with some normative remarks on the Dutch consolidation package in the light of considerations of political economy. Journal: OECD Journal on Budgeting Year: 2012 Pages: 1-14 Volume: 12 Issue: 1 Handle: RePEc:oec:govkaa:5K9CZXKK13LR Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Author-Name: Lisa von Trapp Author-Name: Valentina Kostyleva Author-Name: Jan van Tuinen Author-Name: Matthias Morgner Title: Budgeting in Ukraine Abstract: This budget review of Ukraine first discusses some general legal, political and economic characteristics of the country and recent institutional reforms. Section 2 examines the budget formulation process with separate attention for the budget structure and classification, the annual budget preparation cycle, medium-term planning, long-term fiscal sustainability, the organisation of the Ministry of Finance, and the funding of local government. Section 3 addresses the parliamentary budget process with special attention for the Budget Committee, the annual parliamentary budget cycle, and the impact of parliament. Section 4 focuses on budget execution with special attention for the annual executive process, cash management, and budgetary discipline. Section 5 looks at the supply side of the budget process: the ministries and agencies that provide for public administration and service delivery at the level of central government, as well as such provision by local governments. Section 5 also addresses public employment, the civil service, public procurement, and the public enterprise sector. Section 6 looks at accounting and audit, with special attention for financial reporting, internal audit, and external audit. JEL classification: H610, H570, H830 Keywords: Budget formulation, budget preparation cycle, budget structure and classification, medium-term planning, long-term fiscal sustainability, parliamentary budget process, parliamentary budget committee, annual budget cycle, budget execution, cash management, budgetary discipline, public administration and service delivery, local government, public procurement, public employment, civil service, public enterprise sector, accounting, audit, financial reporting, internal audit, external audit, Ukraine. Journal: OECD Journal on Budgeting Year: 2013 Pages: 69-140 Volume: 12 Issue: 2 Handle: RePEc:oec:govkaa:5K4C1S8N0BR0 Template-type: ReDIF-Article 1.0 Author-Name: Frits Bos Title: Economic theory and four centuries of fiscal decentralisation in the Netherlands Abstract: The history of the Netherlands reveals major shifts from centralisation of government tasks towards decentralisation and vice versa. In the 17th century, the Republic of United Provinces was the first federal state in modern history. Many transformations later, the Kingdom of the Netherlands became a big centralised welfare state. Since the 1980s, a reverse development has started: the welfare state is being downsized and decentralised. This article describes and discusses this evolution in view of a broad spectrum of economic theories. Four conclusions are drawn. First, the major changes in Dutch fiscal decentralisation arrangements were introduced as policies to overcome a severe economic and political crisis. Second, many other factors – like the increase in communication, mobility, population density, urbanisation and the role of government – also necessitated changes. Third, in order to ensure efficient and financially solid government, the accountability and transparency of central and local government and their interrelationships have been improved substantially. Fourth, current arrangements are not optimal and should be changed. For example, Dutch municipalities should increase further in scale, and the role of Dutch provinces should be reconsidered. Journal: OECD Journal on Budgeting Year: 2013 Pages: 9-60 Volume: 12 Issue: 2 Handle: RePEc:oec:govkaa:5K8ZPD5CCZD8 Template-type: ReDIF-Article 1.0 Author-Name: Gerhard Steger Title: Redirecting public finance towards a sustainable path Abstract: This article summarises the conclusions of Gerhard Steger, chair of the OECD Working Party of Senior Budget Officials, which he presented at the 2nd International Policy Forum on Budgeting in Seoul in November 2011. Journal: OECD Journal on Budgeting Year: 2013 Pages: 61-67 Volume: 12 Issue: 2 Handle: RePEc:oec:govkaa:5K8ZSL7N94S8 Template-type: ReDIF-Article 1.0 Author-Name: Ian Hawkesworth Author-Name: Oscar Huerta Melchor Author-Name: Marc Robinson Title: Selected budgeting issues in Chile: Performance budgeting, medium-term budgeting, budget flexibility Abstract: The Chilean government is exploring several important areas of public sector reform. This article discusses performance budgeting (including spending reviews, efficiency reviews, and the Chilean performance management system), mediumterm budgeting (especially the use of forward estimates and fiscal rules), and flexibility and efficiency in budget execution. Chile’s situation as of May 2012 was analysed in the light of OECD country best practices at the annual meeting of the OECD network on performance and results in November 2012, and the article makes several suggestions for reform. JEL classification: H610 Keywords: Chile, budget structure, programme classification, formula-based performance budgeting, performance-based budgeting, evaluation, fiscal space, productivity savings mechanism, medium-term budgeting framework, MTBF, longterm projections Journal: OECD Journal on Budgeting Year: 2013 Pages: 1-39 Volume: 12 Issue: 3 Handle: RePEc:oec:govkaa:5K44TPX5BL48 Template-type: ReDIF-Article 1.0 Author-Name: Maarten de Jong Author-Name: Iris van Beek Author-Name: Rense Posthumus Title: Introducing accountable budgeting: lessons from a decade of performance-based budgeting in the Netherlands Abstract: This article assesses the experience of the Netherlands with performance budgeting since full programme and performance budgeting was introduced in 1999-2002. The lessons learned so far resulted in 2012 in a reform called “Accountable Budgeting” involving a major overhaul of the performance budgeting structure in order to enable more detailed parliamentary oversight as well as to enhance internal control by the Ministry of Finance and line ministries. The article examines international experience with PBB reform and its use in the context of the Netherlands national government, focusing on the lessons learned concerning the use of performance information in the budgetary process. The “Accountable Budgeting” reform is explained, and the concluding section assesses which PBB assumptions were challenged, abandoned or retained in these reforms and discusses possible future developments in budget presentation. JEL classification: H610 Keywords: Accountable budgeting, Verantwoord Begroten, performance-based budgeting, PBB, parliamentary oversight, budget reform, performance information, budgetary process, budget reform, budget presentation, Netherlands Journal: OECD Journal on Budgeting Year: 2013 Pages: 1-34 Volume: 12 Issue: 3 Handle: RePEc:oec:govkaa:5K455R12VS37 Template-type: ReDIF-Article 1.0 Author-Name: Marc Robinson Title: Aggregate expenditure ceilings and allocative flexibility Abstract: This article shows how to combine top-down budgeting – in the core sense of the establishment of a hard aggregate expenditure ceiling at the start of the budget preparation process – with flexibility in the allocation of the aggregate ceiling between spending ministries during budget preparation. It argues strongly against determining spending ministry shares of the aggregate expenditure ceiling without any prior opportunity for them to present formal new spending proposals. The keys to reconciling top-down budgeting with allocative flexibility are: the baseline/new policy distinction; good forward estimates; a government-wide new policy pool; and spending review. JEL classification: E620, H610 Keywords: Fiscal policy, budget preparation process, top-down budgeting, expenditure ceiling, bottom-up spending requests, fiscal space, multi-year ceilings, baseline ceilings, allocative efficiency, aggregate fiscal discipline, budgeting techniques Journal: OECD Journal on Budgeting Year: 2013 Pages: 1-19 Volume: 12 Issue: 3 Handle: RePEc:oec:govkaa:5K468NQJ1F7G Template-type: ReDIF-Article 1.0 Author-Name: Mickie Schoch Author-Name: Corina den Broeder Title: Linking information on policy effectiveness and efficiency to budget decisions in the Netherlands Abstract: This article analyses the Dutch policy evaluation system from a budgetary perspective. It addresses the context and scope of the evaluation system, explains the need for such a system from the perspective of budget decision makers, describes the legislative framework for evaluation, analyses the evaluation instruments and their impact on budgetary decision making in practice, and draws lessons for finance ministries in other countries based on the strengths and weaknesses of the Dutch evaluation system. JEL classification: H500, H610, H830 Keywords: Netherlands, policy evaluation, effectiveness and efficiency of government programmes, budget process, budgetary decision making, evaluation instruments Journal: OECD Journal on Budgeting Year: 2013 Pages: 1-22 Volume: 12 Issue: 3 Handle: RePEc:oec:govkaa:5K468NQJ2N28 Template-type: ReDIF-Article 1.0 Author-Name: Wouter Schilperoort Author-Name: Peter Wierts Title: Illuminating budgetary risks: The role of stress testing Abstract: The increased vulnerability of government finances in many countries underlines the importance of public risk management. We apply a specific risk management tool – stress testing – to public finances. After presenting a general framework for stress testing government finances, we illustrate its application for the case of the Netherlands. Our analysis indicates that high levels of contingent liabilities call for sufficient shock absorption capacity in public finances. JEL classification: E62, H63 Keywords: Fiscal policy, public debt, stress test, risk management, budgetary sensitivity, implicit and explicit guarantees, Netherlands Journal: OECD Journal on Budgeting Classification-JEL: E62; E63 Year: 2013 Pages: 1-18 Volume: 12 Issue: 3 Handle: RePEc:oec:govkaa:5K46F8G99F7J Template-type: ReDIF-Article 1.0 Author-Name: Joaquim Miranda Sarmento Author-Name: Ricardo Ferreira Reis Title: Buy back PPPs: An arbitrage opportunity Abstract: As Portugal is facing strong fiscal pressure, government spending on public-private partnerships (PPPs) in the road sector has become a main budgetary constraint. In this article, we show how the financial crisis has created a unique arbitrage opportunity that provides a solution to this problem. Since the private sector is in urgent need of liquidity, we suggest that the Portuguese government should use some of the bailout funds, borrowed at lower interest rates, to buy back the roads concessions, discounting future payments at the high interest rates currently charged to Portugal. For the roads already in operation, the purchase of the assets would significantly reduce future public payments and would also release money into banks and the economy. For the roads currently under construction, we propose that the government buys only the equity of these companies. That would also reduce future payments, and allow for the postponement or even cancelation of some of these projects, while granting private companies an exit from projects that they are no longer able to finance. This operation would save around half of PPP payments over the next 20 years. Journal: OECD Journal on Budgeting Year: 2013 Pages: 1-14 Volume: 12 Issue: 3 Handle: RePEc:oec:govkaa:5K47TB293CZQ Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: Lessons from the crisis Abstract: The Great Recession has been an unplanned but critical stress test of contemporary fiscal policy and financial management. This article seeks to draw lessons from this crisis, whose final chapters have yet to be written. The lessons fall into two broad, overlapping categories: fiscal and economic policy; and budget procedures and practices. Section 1 looks back at the crisis in search of markers that distinguish between fiscally strong and weak countries. Section 2 looks forward to consider how national governments may avert future fiscal meltdowns by incorporating risk assessment and other early warning signals into routine budget work, and by devising more effective rules and procedures to ward off fiscal mischief. The concluding section reflects on how the practice of budgeting might be altered by shocks to established procedures. Journal: OECD Journal on Budgeting Year: 2013 Pages: 1-29 Volume: 12 Issue: 3 Handle: RePEc:oec:govkaa:5K47TB29WN6H Template-type: ReDIF-Article 1.0 Author-Name: Ian Hawkesworth Author-Name: Knut Klepsvik Title: Budgeting levers, strategic agility and the use of performance budgeting in 2011/12 Abstract: Governments need to be able to quickly and flexibly reallocate resources from one priority to another. This article addresses this dimension of strategic agility in terms of managing the reallocation of resources in the public sector through the use of various budgetary tools. The focus is on recent fiscal consolidation efforts, the use of performance information and spending reviews, and automatic productivity cuts. This article draws on the OECD survey on performance and results that was conducted in 2011/12; the data are accurate as of November 2012. Journal: OECD Journal on Budgeting Year: 2013 Pages: 105-140 Volume: 13 Issue: 1 Handle: RePEc:oec:govkaa:5K3TTG15BS31 Template-type: ReDIF-Article 1.0 Author-Name: Philippe Burger Author-Name: Ian Hawkesworth Title: Capital budgeting and procurement practices Abstract: Capital investment is a key function of government. However, for a number of reasons it has proven difficult for governments to ensure that capital investment represents value for money, is affordable, and is budgeted and accounted for in a prudent and transparent manner. This article discusses these challenges facing governments. Using the findings of a survey conducted among OECD countries and enhanced engagement countries in 2012, this article provides an overview of what governments are doing with respect to planning and prioritisation, procurement, construction, operation and management, monitoring and evaluation, and budgeting and accounting for capital projects. The article concludes with a number of recommendations for capital budgeting and procurement. JEL classification: H400, H540, H570 Keywords: Capital investment, capital budgeting, capital projects, value for money, budgeting systems, accounting systems, transparency, procurement, public-private partnerships, PPPs, TIP, traditional infrastructure procurement Journal: OECD Journal on Budgeting Year: 2013 Pages: 57-104 Volume: 13 Issue: 1 Handle: RePEc:oec:govkaa:5K3W580LH1Q7 Template-type: ReDIF-Article 1.0 Author-Name: Paul L. Posner Author-Name: Matthew Sommerfeld Title: The politics of fiscal austerity: Democracies and hard choices Abstract: The sustainability of national economies will ultimately require a balance between near-term growth and longer-term fiscal consolidation. The question that is now being raised is whether such actions are politically sustainable. As the OECD area begins to emerge from the recession, another question is whether democratic countries can take pro-active leadership before a crisis forces their hand. This article examines the politics of fiscal consolidations in OECD countries in recent years, assessing whether and how leaders attempted to resolve the tensions between the fiscal and electoral imperatives. JEL classification: H610, H620, H630, H680, P160 Keywords: Fiscal consolidation, sustainability of public finances, deficit, debt, Great Recession, financial crisis, political efficacy, democratic institutions, fiscal austerity, economic growth, role of political institutions, budget cuts, fiscal rules, political outcomes Journal: OECD Journal on Budgeting Year: 2013 Pages: 141-174 Volume: 13 Issue: 1 Handle: RePEc:oec:govkaa:5K3W6LK42L33 Template-type: ReDIF-Article 1.0 Author-Name: Frits Bos Author-Name: Coen Teulings Title: Short- and long-term forecasting by the Netherlands Bureau for Economic Policy Analysis (CPB): Science, witchcraft, or practical tool for policy? Abstract: CPB forecasts for the next year and for the next period of government should be seen as well-motivated estimates based on all recent information, plausible assumptions and expected trends. These assumptions and trends are partly based on econometric estimation methods and insights from economic theory. However, the economy is a chaotic system in which small events can have major effects at short notice. Even when major uncertainties and risks are well understood, it remains impossible to indicate where and when a little spark will kindle a great fire or when the bubble in (e.g.) the housing or stock market will burst. The more distant the look into the future, the more uncertain are the forecasts. For such long-term analyses, the CPB employs scenarios, extended sensitivity analyses and identification of major political choices. Policy making is like sailing in fog. The regular set of CPB forecasts helps to look forward and to monitor whether a change of course is necessary. Despite fundamental uncertainty about the future, the CPB forecasts provide a good base for political discussions and decision making, like a coalition agreement, budget and wage rate negotiations and defining a long-term policy strategy. These forecasts inform Dutch society, reduce transaction costs in economic and political decision making, and foster consensus on economic and fiscal policy. Journal: OECD Journal on Budgeting Classification-JEL: A11; C0; D80; E17; F17; F47; G17; H68 Year: 2013 Pages: 45-56 Volume: 13 Issue: 1 Handle: RePEc:oec:govkaa:5K409G58Z133 Template-type: ReDIF-Article 1.0 Author-Name: Giovanna Dabbicco Title: The reconciliation of primary accounting data for government entities and balances according to statistical measures: The case of the European Excessive Deficit Procedure Table 2 Abstract: This article examines the scope and size of adjustments made by statisticians on source data from public accounting systems in EU member states to reach harmonised statistical measures. The article focuses on EDP Table 2 which shows the reconciliation from cash/cash modified or accrual public accounting to ESA 95, analyses the potential changes needed to EDP Table 2 if public accounting is on a full accrual/IPSAS basis, and proposes a possible way forward for better reconciling the relevant reporting balances. The analysis takes into account the study carried out by the European Commission report on the “Suitability of International Accounting Standards for the Public Sector (IPSAS) for the EU member states”, and the differences between statistical reporting and IPSAS highlighted by IPSASB in the consultation paper on “IPSASs and Government Finance Statistics”. Journal: OECD Journal on Budgeting Classification-JEL: E62; E63; H61; H62; H83 Year: 2013 Pages: 31-43 Volume: 13 Issue: 1 Handle: RePEc:oec:govkaa:5K409G5913XQ Template-type: ReDIF-Article 1.0 Author-Name: Benoît Rigaud Author-Name: Paul-Émile Arsenault Title: Budget governance in Canada: Comparing practices within a federation Abstract: Canada is a federal country with 14 governments: federal, provincial and territorial. This article presents the results of a survey of institutional arrangements for budgeting that was conducted in 2010 among representatives of those governments. The pan-Canadian survey draws on an OECD questionnaire used in 2007 as part of the OECD International Budget Practices and Procedures Database. The analysis of sub-national government budget practices gives insights on fiscal federalism as well as the methodology for comparing. Journal: OECD Journal on Budgeting Year: 2013 Pages: 9-30 Volume: 13 Issue: 1 Handle: RePEc:oec:govkaa:5K409G59X7R8 Template-type: ReDIF-Article 1.0 Author-Name: Knut Klepsvik Author-Name: Richard Emery Author-Name: Brian Finn Author-Name: Regina Bernhard Title: Budgeting in Albania Abstract: The Republic of Albania is located in south-eastern Europe and has a population of 2.8 million (2011 census). It was established as a unitary parliamentary republic in 1991 after 46 years of Communist rule. This review of the budget process of the Republic of Albania was carried out as part of the work programme of the OECD Working Party of Senior Budget Officials. In preparation for the review, a team for the OECD Secretariat led by Knut Klepsvik undertook a mission to Tirana from 29 October to 2 November 2012. The substance of this review is divided into 4 sections which details the budgeting process in Albania and includes an Annex summarising recent budget reviews that have taken place in the country. JEL classification: H50, H61, H83, O21, O52 Keywords: Annual budget, budgetary process, budget structure, fiscal policy, fiscal rules, parliamentary budget, procurement. Journal: OECD Journal on Budgeting Classification-JEL: H50; H61; H83; O21; O52 Year: 2014 Pages: 123-189 Volume: 13 Issue: 2 Handle: RePEc:oec:govkaa:5JZ14BZ8N86D Template-type: ReDIF-Article 1.0 Author-Name: Marc Robinson Title: Spending reviews Abstract: This article focuses on the optimal design of spending review processes. It contents that sending review should be an integral part of the government budget preparation process, in order to support aggregate fiscal discipline and to increase the fiscal space available for essential new spending initiatives. The article discusses the appropriate focus and coverage of spending review, the assignment of roles and responsibilities during the process, and the information base of spending review. JEL classification: H500, H610. Keywords: Baseline expenditure, fiscal space, savings options, efficiency reviews, strategic reviews, bottom-up review, joint review, top-down review, comprehensive review, selective review. Journal: OECD Journal on Budgeting Year: 2014 Pages: 81-122 Volume: 13 Issue: 2 Handle: RePEc:oec:govkaa:5JZ14BZ8P2HD Template-type: ReDIF-Article 1.0 Author-Name: Allen Schick Title: The metamorphoses of performance budgeting Abstract: Performance budgeting (PB) emerged more than 60 years ago as a key driver of budgetary innovation in the United States. Due to its often lofty goals, PB initiatives were rarely successful, but have instead reappeared, in different forms and with new labels. This article focuses on contemporary PB transformations, explains their rationale and objectives, and assesses their prospects in eight sections. Due to the fact that PB defies standardisation and countries differ in their approaches, the versions discussed here do not fit all venues, nor would all observers agree that they are sufficiently distinguishable from one another to warrant distinctive labels. PB, however, has some basic features that cut across all its mutations, though the way they are framed or applied may differ among the various approaches. JEL classification: H60, H61, H68 Keywords: Budget allocation, budget framework, expenditures, implementation, line items, performance budgeting Journal: OECD Journal on Budgeting Classification-JEL: H60; H61; H68 Year: 2014 Pages: 49-79 Volume: 13 Issue: 2 Handle: RePEc:oec:govkaa:5JZ2JW9SZGS8 Template-type: ReDIF-Article 1.0 Author-Name: Mario Marcel Title: Budgeting for fiscal space and government performance beyond the great recession Abstract: In the course of the prolonged economic crisis that started in 2008, fiscal space has become a scarce commodity in OECD countries. This has not only broadened the appeal of a concept originally raised by emerging countries in the early 2000s, but has also extended its meaning to recognise its intertemporal nature and to highlight its endogenous features. Current projections indicate that fiscal consolidation needs and the effect of demographic change on social security may shrink non-pension fiscal space in OECD countries by some 18% between 2011 and 2030, exceeding current consolidation plans in many countries. The response to these needs should take place increasingly through budgets rather than ad hoc consolidation packages. To this end, the quest for fiscal space needs to be mainstreamed into budgeting by developing appropriate tools and procedures; the effort needs to extend beyond the annual budget process both in timeframe and scope; and many actors need to contribute to this effort in addition to ministries of finance and budget offices. In other words, generating fiscal space at the required scale needs not only a substantial revamping of budget practices, but also revisiting the temporal and institutional framework within which budgeting takes place. JEL classification: H50, H61, H83 Keywords: Budget practices, budget framework, economic crisis, fiscal space, fiscal consolidation, incrementalist, performance, recession Journal: OECD Journal on Budgeting Classification-JEL: H50; H61; H83 Year: 2014 Pages: 9-47 Volume: 13 Issue: 2 Handle: RePEc:oec:govkaa:5JZ2JW9T0PD3 Template-type: ReDIF-Article 1.0 Author-Name: John Clark Author-Name: Caroline Gibbons Author-Name: Susan Morrissey Author-Name: Joshua Pooley Author-Name: Emily Pye Author-Name: Rhett Wilcox Author-Name: Luke Willard Title: Estimates of uncertainty around Australian budget forecasts Abstract: In this article, past forecast errors are used to construct confidence intervals around Australian Government Budget forecasts of key economic and fiscal variables. These confidence intervals provide an indication of the extent of uncertainty around the point estimate forecasts presented in the Budget. JEL classification numbers: E17, H68. Keywords: Confidence intervals, forecast errors, government budget, nominal GDP, real GDP, treasury, uncertainty. Journal: OECD Journal on Budgeting Year: 2014 Pages: 1-19 Volume: 13 Issue: 3 Handle: RePEc:oec:govkaa:5JXVD4XLNS7J Template-type: ReDIF-Article 1.0 Author-Name: Rodrigo Moreno-Serra Title: The impact of cost-containment policies on health expenditure: Evidence from recent OECD experiences Abstract: Many governments have enacted health cost-containment policies in recent years, and many are currently considering further reform alternatives to tackle growing health spending and promote efficiency in the health system, particularly in light of projections regarding future cost pressures in this sector. The focus of this study is to assess the most robust empirical evidence on the public spending effects of health policy alternatives to contain excess cost growth in the system. A stylised theoretical framework of the relationships between potential cost-containment measures, economic incentives and quantities, and health expenditure is suggested. The developed framework provides structural guidance for reviewing the evidence on the cost-containment impacts of various reforms implemented in OECD countries in the last decades. The accumulated evidence indicates that there are various alternative policies in a government’s toolkit that can be combined to achieve better cost control in the health system, provided institutional aspects and policy interactions are carefully considered. JEL classification: I10, I18, H51. Keywords: Health financing, cost containment, provider payment, health system reform. Journal: OECD Journal on Budgeting Classification-JEL: H51; I10; I18 Year: 2014 Pages: 1-29 Volume: 13 Issue: 3 Handle: RePEc:oec:govkaa:5JXX2WL6LP9P Template-type: ReDIF-Article 1.0 Author-Name: Richard Allen Title: Evaluating the capability of the UK Treasury, 1990-2013 Abstract: The strength of the United Kingdom’s central finance agency (H.M. Treasury) has been attributed to its broad and powerful influence on policy issues; the high intellectual standards of its staff; the relatively clear division between the “official” treasury and the political level; and the important role played by the permanent secretary as an anchor and point of communication between officials and ministers. To maintain its power the Treasury has to adapt quickly to changing economic and political circumstances, most recently the global financial crisis. It has also engaged in two major reorganisations over the past 20 years, which have resulted in a substantial streamlining of the organisation, a flattening of the management structure, and a casting out of functions regarded as peripheral to its core finance and economic mandate. Some critics, however, have argued that the performance of the Treasury has failed, and that the department needs to be cut back to its traditional role as a budget and finance ministry. JEL classification: H50, H54, H80, H83. Keywords: Treasury, finance ministry, central finance agency, public finance, organisation, change management. Journal: OECD Journal on Budgeting Classification-JEL: H50; H54; H80; H83 Year: 2014 Pages: 1-29 Volume: 13 Issue: 3 Handle: RePEc:oec:govkaa:5JXX2XCVJPTH Template-type: ReDIF-Article 1.0 Author-Name: Kent Weaver Author-Name: Alexander Willén Title: The Swedish pension system after twenty years: Mid-course corrections and lessons Abstract: Elements of the Swedish pension reform enacted in the 1990s have served as a model for reform initiatives in a number of other countries. Sweden’s experience suggests that a Notional Defined Contribution (NDC) pension reform can be sustained in a supportive political environment, but it has not been immune to electoral pressures to prevent visible cuts in pension benefits. Moreover, efforts to lengthen working lives have encountered major barriers both in the way that the state pension system is perceived and in the structure of the occupational pension system. Design of Sweden’s individual account tier has major successes in lowering administrative costs and in providing information across sources of retirement income, but efforts to increase active engagement in selecting retirement savings portfolios have faltered. Sweden has modified its new pension system in several ways over the past decade to address perceived problems and political concerns, and debates are now arising on a “Pension Reform 2.0” package of more comprehensive changes. JEL classification: H5, H55. Keywords: Pension reform, pension system, income contribution, retirement, stabilising mechanisms. Journal: OECD Journal on Budgeting Classification-JEL: H5; H55 Year: 2014 Pages: 1-26 Volume: 13 Issue: 3 Handle: RePEc:oec:govkaa:5JXX3SX58X9T Template-type: ReDIF-Article 1.0 Author-Name: George Kopits Title: Coping with fiscal risk: Analysis and practice Abstract: Against the background of the recent financial crisis that in many countries metastasised into significant fiscal stress, this article reviews the analysis, management and mitigation of fiscal risks. On the basis of the classification of specific, general and systemic types, fiscal risks have been estimated directly, and more recently, through sensitivity tests on baseline macro-fiscal projections. Although still at an experimental stage, valuable insights have been gained for implementation of various stochastic methods. The article draws a number of lessons for improved management and mitigation of fiscal risks from a recent OECD survey of country practices. This suggests scope for improvement on a number of fronts: disclosure and estimation of risks; assignment of such tasks within the public sector; adoption of various insurance schemes; building special-purpose reserves; and enacting well-designed fiscal rules, along with effective no-bailout provisions. At the policy level, it is necessary to adopt a countercyclical policy stance especially during economic booms; to enforce transparent accounting and forecasting practices; and where necessary, to undertake structural reform in key areas. An additional overarching lesson from the financial crisis is the need to assess and prevent systemic fiscal risk through close co-ordination with an independent macroprudential supervisory authority. JEL classification: H5, H12, H41 Keywords: Fiscal risk, fiscal rules, countercyclical policy, systemic risk, stochastic methods Journal: OECD Journal on Budgeting Classification-JEL: H12; H41; H5 Year: 2014 Pages: 47-71 Volume: 14 Issue: 1 Handle: RePEc:oec:govkaa:5JXRGSSDQNLT Template-type: ReDIF-Article 1.0 Author-Name: Barry Anderson Author-Name: Elizabeth Minneman Title: The abuse and misuse of the term “Austerity” Implications for OECD countries Abstract: Austerity has become a widely used term in economic research and popular media as many countries have recently implemented deficit reduction policies. This article begins by exploring definitions of austerity used in research and the ways these different definitions impact analysis of policy effects. The article then takes into account a number of factors that can affect the outcome of these so-called austerity measures, including economic conditions, time period, and parties impacted by the policies. Without a clear definition of austerity and the contexts under which it is implemented, a conclusive analysis of austerity’s effects cannot be conducted. This article concludes that the term “austerity” will remain a confusing term that can breed misunderstanding, social uprisings, political unrest, and ill-prescribed solutions to economic problems. JEL classification: H10, H12, H41, H60 Keywords: Austerity, spending cuts, deficits, tax increases, recession Journal: OECD Journal on Budgeting Year: 2014 Pages: 109-122 Volume: 14 Issue: 1 Handle: RePEc:oec:govkaa:5JXRMDXC6SQ1 Template-type: ReDIF-Article 1.0 Author-Name: Joseph White Title: The challenge of budgeting for healthcare programmes Abstract: The OECD has created a Joint Network on Fiscal Sustainability of Health Systems. This article, developed as input to that project, seeks to summarise both why budgeting for healthcare is particularly challenging and why the challenge is often misunderstood. I argue that sustainability is a political, not fiscal, issue; that common explanations of increased spending, such as “ageing” and “technology”, are either inaccurate or unhelpful; and that the nature of public support for healthcare means that standard budgetary worldviews may not be appropriate in a representative system. For example, both a focus on “fiscal space” and distrust of dedicated revenues may be contrary to budgetary values of both representation and balance. I offer explanations of why demand for healthcare spending both is peculiarly intense and tends to expand because notions of “necessary” care expand. Budget-making is made more difficult by a uniquely confusing proliferation of ideas about how to control spending, many of which are supported more by disciplinary biases than by hard evidence. I conclude by considering the impact of two structural features: whether services are delivered by a bureau or as an entitlement, and whether it is funded by dedicated revenues. The challenges can be met, but hardheaded and sceptical budget analysis is especially important. JEL classification: H51, H6, E62, H2, I1, J11, O33, P16, Z18 Keywords: Budgeting, healthcare spending, ageing society, Baumol’s disease, dedicated revenues, efficiency, entitlements, redistribution, technology, unsustainability Journal: OECD Journal on Budgeting Classification-JEL: H2; H51; H6; H62; I1; J11; O33; P16; Z18 Year: 2014 Pages: 73-107 Volume: 14 Issue: 1 Handle: RePEc:oec:govkaa:5JXST2MFM923 Template-type: ReDIF-Article 1.0 Author-Name: Heleen M.J. Hofmans Author-Name: Clement R. van de Coevering Title: How to deal with contingent liabilities – Lessons from the Dutch experience Abstract: commission has reviewed all the guarantees, loans and financial interventions provided by the Dutch government. This review shows that policy makers often perceive these measures as a “free lunch”, do-not-ask (sufficiently high) premiums and do-not-build reserves to cover potential damages. The commission concluded that the Dutch government needs to reduce these measures where possible (e.g. by including sunset clauses), implement policies that reduce implicit risks, increase transparency, and consider asking for an external opinion regarding premiums in case of large and complex risks. Also internationally, an increased focus on budget systems that ensure transparency and provide the right incentives is necessary, as in recent years contingent liabilities increased while government finances deteriorated, making countries less resilient to these risks. Countries seem to use very different definitions and reporting methods with regard to contingent liabilities, making an international comparison and monitoring very difficult. Keywords: Budget systems, contingent liabilities, fiscal policy, risk management, sunset clauses, the Netherlands Journal: OECD Journal on Budgeting Classification-JEL: H12; H61; H81; H87 Year: 2014 Pages: 35-45 Volume: 14 Issue: 1 Handle: RePEc:oec:govkaa:5JXV7KMX9FBQ Template-type: ReDIF-Article 1.0 Author-Name: Hideaki Tanaka Title: Economic and fiscal management under the Democratic Party of Japan (DPJ) administration Abstract: Japan experienced a major change of government in September 2009. It was a remarkable political event, because Japanese politics was dominated by the Liberal Democratic Party (LDP) in almost all the years following the end of World War ll. The new coalition government led by the Democratic Party of Japan (DPJ) tried to overhaul and restructure public administration and policy making in order to strengthen political leadership. In particular, they wanted to reform budgetary institutions as they fully recognised the LDP governments’ wasted public money that brought about huge fiscal deficits. They introduced new medium-term fiscal targets and planning, programme reviews, and tax expenditure report, and legislated laws to increase the rate of consumption tax from 5% to 10%. However their reforms were not successful as expected and ended in larger fiscal deficits. This paper analyses the economic and fiscal management of the DPJ Administration and why they couldn’t succeed in reforming budgetary institutions. Keywords: Japan, budgeting, fiscal discipline, medium-term fiscal planning, programme review, ageing Journal: OECD Journal on Budgeting Classification-JEL: D72; D73; H50; H61; H62; H83 Year: 2014 Pages: 9-33 Volume: 14 Issue: 1 Handle: RePEc:oec:govkaa:5JXV7KMXBKHF Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Budget Review: Germany Abstract: Budgeting in Germany at the federal level is conducted in the basis of a well-developed legal, constitutional and administrative framework. The German budget process is robust and encompasses all elements of modern budgeting with significant reforms continuously being implemented . As a result, Germany has achieved an enviable fiscal performance in recent years. Surprisingly, little literature and research is available on the German budget process internationally. GOV/BUD's recently conducted budget review of Germany aims to present a concise overview of budgeting in Germany. Journal: OECD Journal on Budgeting Year: 2015 Pages: 9-79 Volume: 14 Issue: 2 Handle: RePEc:oec:govkaa:5JRW4SXB32Q4 Template-type: ReDIF-Article 1.0 Author-Name: Nowook Park Author-Name: Joung-Jin Jang Title: Performance budgeting in Korea: Overview and assessment Abstract: This paper tries to shed light on the Korean performance budgeting (PB) system by analysing its strength and limitations by utilising the framework of the OECD 2011 PB survey. It provides an overview of the Korean PB system and describes the Korean system based on the OECD survey results. Lastly, current issues of the Korean PB system are discussed including its future directions. JEL classification: H61, H830 Keywords: Performance budgeting, performance information, budgeting, Korea Journal: OECD Journal on Budgeting Classification-JEL: H61; H80 Year: 2015 Pages: 1-16 Volume: 14 Issue: 3 Handle: RePEc:oec:govkaa:5JRTL4WNM1R5 Template-type: ReDIF-Article 1.0 Author-Name: Fred Thompson Title: It's spending that matters: From robust control theory to practical heuristics Abstract: The problems caused by state and local revenue volatility are inherently challenging. Oregon has an especially volatile revenue structure, which can cause all sorts of problems as the state moves through the business cycle. Nevertheless, we have concluded that these problems are caused less by revenue volatility per se than by adjusting spending up and down to match current revenue flows, from growing spending at unsustainable rates during booms and cutting back precipitously during busts. The mild recession of 2001-02 had a particularly severe aftermath in Oregon. This event shocked the state’s policy makers into addressing the revenue volatility issue, making sense of it, and taking steps that greatly mitigated the adverse effects of the “Great Recession”. This article describes three things: the public-policy processes that produced this moderately happy outcome, my own voyage of discovery as I observed/participated in these processes, and a set of practical mechanisms states can use to stabilise spending. JEL classification: H11, H20, H70 Keywords: Oregon, Great Recession, cash flows, income taxes, revenue volatility Journal: OECD Journal on Budgeting Classification-JEL: H11; H20; H70 Year: 2015 Pages: 1-14 Volume: 14 Issue: 3 Handle: RePEc:oec:govkaa:5JRTL4WNP3MN Template-type: ReDIF-Article 1.0 Author-Name: Joseph White Title: What are budgeting's purposes?: Comments on OECD's principles of good budgetary governance Abstract: OECD’s Recommendation of the Council on Budgetary Governance makes a substantial contribution to discussion of good budgetary practice by synthesising much common understanding while updating it to recognise some lessons from the experience of the Great Recession. Yet its implicit understanding of the purposes of budget processes has weaknesses both as policy and political analysis. The policy understanding overemphasises the importance of budget totals relative to budget details. The political understanding is as top-down as the policy view. Although budgets might be seen as contracts between citizens and the state, in a representative system they are better seen as treaties among citizens negotiated through politics. The Recommendation barely recognizes the existence of and challenges from political conflict. JEL classification: H00, H60, H61 Keywords: Balance, fiscal policy, information, representation, top-down, United States Journal: OECD Journal on Budgeting Classification-JEL: H00; H60; H61 Year: 2015 Pages: 1-18 Volume: 14 Issue: 3 Handle: RePEc:oec:govkaa:5JRTL4WNR8ZW Template-type: ReDIF-Article 1.0 Author-Name: Chunsoon Kim Title: A study on compilation and improvement of indices for legislative budgetary institutions: With focus on comparative analysis of current institutions in 60 countries Abstract: Legislative budget institutions are established and operated in different forms according to the various political and social experiences and financial circumstances of each country. Note, however, that research studies on the causes thereof are not only few in number but also focus mostly on the fact that legislative budget institutions are determined according to the “form of government”. In this light, this study establishes the comparison and analysis of the legislative budget institution of each country. The implication of this study is as follows. Firstly, this study approaches the Legislature’s capacity from a comprehensive and three-dimensional point of view in order to compile sub-indices of each legislative budgetary institution index. In other words, this study is to approach the financial authority vested to the Legislature and the Legislature’s capacity to exercise such authority from a comprehensive point of view in measuring such indices. Secondly, the accuracy of indices in this study has been improved by deriving relative weighting for sub-indices of each legislative budgetary institution index through AHP questionnaire surveys and analyses. In other words, AHP analysis can ensure the practicality and accuracy of measurement of indices and present a scheme to compile more universal and relevant indices. It is, however, necessary to consider sub-indices such as elements of legal system and related agencies. Also this study has a limitation in that it fails to fully explain the actual conditions of operation of institutions in the unique political, social, and economic settings of each country. JEL Classification: H11, H50, H83 Keywords: Legislative Budget Institution, Legislative Budget Institution Index, AHP Journal: OECD Journal on Budgeting Classification-JEL: H11; H50; H83 Year: 2015 Pages: 1-29 Volume: 14 Issue: 3 Handle: RePEc:oec:govkaa:5JRW6591FRBW Template-type: ReDIF-Article 1.0 Author-Name: OECD Author-Name: Ken Warren Title: Time to look again at accrual budgeting Abstract: A large number of countries are implementing accrual reporting to provide better accountability for the stewardship of public finances to their citizens. Far fewer nations have moved to an accrual basis for their government budgetary decisionmaking. Those few countries that have made the move do not regret doing so, having achieved significant benefits from that reform. This paper looks again at the benefits of accrual budgeting, at some of the major arguments that have impeded its international implementation, and how those issues have been addressed in the countries that have successfully adopted accrual budgeting. It suggests that the international public financial management community should revisit accrual budgeting, and that efforts to implement it should be redoubled, not because it is a panacea for all budgeting and fiscal problems, but rather because it provides a stable foundation for improving fiscal and budgetary decision-making and for providing fairer and more complete budgetary information to citizens. JEL Classification: H10, H11, H61, H83 Key words: Accrual budget, accrual report, fiscal management, fiscal performance, public finance, accountability Journal: OECD Journal on Budgeting Classification-JEL: H10; H11; H61; H83 Year: 2015 Pages: 1-17 Volume: 14 Issue: 3 Handle: RePEc:oec:govkaa:5JRW6591HJ6C Template-type: ReDIF-Article 1.0 Author-Name: Timothy C. Irwin Title: The whole elephant: A proposal for integrating cash, accrual, and sustainability-gap accounts Abstract: Although the budget deficit is much discussed in political debate and economic research, there is no agreement on how it should be measured. There are at least four options, which can be called the cash deficit, the financial deficit, the full-accrual deficit, and the comprehensive deficit. Each is informative, but each has problems of relevance or reliability. Some are more vulnerable to manipulation involving assets and liabilities that are unrecognised in the underlying accounting, others to manipulation involving the mismeasurement of recognised assets and liabilities. Governments should publish all four in a form that reveals their interrelationships. JEL classification: H6, H61, H62 Keywords: Accrual accounts, comprehensive accounts, liabilities, budget deficit Journal: OECD Journal on Budgeting Classification-JEL: H6; H61; H62 Year: 2015 Pages: 1-18 Volume: 14 Issue: 3 Handle: RePEc:oec:govkaa:5JRW6591HNS1 Template-type: ReDIF-Article 1.0 Author-Name: Jaideep Kumar Mishra Title: Study of public financial management systems for two Asian regional groups: Comparisons and key features for SAARC and ASEAN regions Abstract: This paper presents assessments of Public Financial Management (PFM) Systems for two regional Asian groups – the South Asian Association for Regional Cooperation (SAARC) and the Association for South East Asian Nations (ASEAN). The study undertaken uses the Public Expenditure and Financial Accountability (PEFA) results for assessment of the performance of PFM systems of countries both within and across the two regions for the six PEFA framework dimensions. This paper also presents results of the study for comparing regional performance with global averages for various PEFA indicators to identify strengths and weaknesses. An in-depth analysis of the PEFA assessments was also done to identify key features and initiatives undertaken by the countries where strengths in PFM system indicators was identified, and recommendations made, for countries moving on the path of PFM reforms for performance improvement. Keywords: Public Financial Management (PFM), Asian regional groups – SAARC & ASEAN, Public Expenditure and Financial Accountability (PEFA) assessments, Key features and PFM initiatives Journal: OECD Journal on Budgeting Classification-JEL: G00; H00; H60; H83 Year: 2015 Pages: 1-25 Volume: 14 Issue: 3 Handle: RePEc:oec:govkaa:5JRW9CZDG326 Template-type: ReDIF-Article 1.0 Author-Name: Ian Hawkesworth Author-Name: Ihssane Loudiyi Title: Overview of public governance of public-private partnerships in the Russian Federation Abstract: Good infrastructure is crucial to a country’s development and continued success. Russia’s developmental goals require new and upgraded infrastructure throughout its territory. Private investment in capital projects will be vital for Russia to meet these goals. To facilitate private investment, the Russian government has embarked on a series of reforms aimed at improving the investment climate and creating a robust institutional framework for private sector participation in concessions and Public-Private Partnerships (PPPs). The OECD’s 2012 Council Recommendation on Principles for Public Governance of Public-Private Partnerships (the PPP Recommendation) aims to support governments facing trade-offs between three demands inherent in a PPP project process. This article provides an overview of the alignment of the policies of the Russian Federation in the area of public governance of PPPs with these recommendations. JEL classification: H41, H54, H57 Keywords: Council recommendations, public private partnerships, Russian Federation, value for money Journal: OECD Journal on Budgeting Classification-JEL: H41; H54; H57 Year: 2016 Pages: 9-30 Volume: 15 Issue: 1 Handle: RePEc:oec:govkaa:5JM3RX2Q6MZS Template-type: ReDIF-Article 1.0 Author-Name: Marc Robinson Title: The coverage of aggregate expenditure ceilings Abstract: Aggregate expenditure ceilings are today a feature of budgeting in many OECD countries. They are typically used either to enforce a trend-based expenditure policy, or to gradually reduce the size of government. With the increased popularity of expenditure rules, aggregate ceilings are also required to give effect to these rules. This article focuses on the key design issue of the coverage of aggregate expenditure ceilings – that is, should they cover the totality of government expenditure, or is it legitimate to exclude certain categories of expenditure? It is suggested that the distinction between “determinate” and “indeterminate” expenditure is crucial to properly answering this question. It is also argued that the appropriate coverage of aggregate expenditure ceilings is different during expenditure planning (budget preparation) and during budget execution. JEL classification: E620, H610 Keywords: Expenditure ceilings, top-down budgeting, determinate expenditure, indeterminate expenditure, automatic changes, trend-based expenditure policy, contingency reserve, forecasting margin, sequestration, compensation mechanism, welfare cap Journal: OECD Journal on Budgeting Classification-JEL: H61; H62 Year: 2016 Pages: 125-145 Volume: 15 Issue: 1 Handle: RePEc:oec:govkaa:5JM3RX2QBR28 Template-type: ReDIF-Article 1.0 Author-Name: Francois Bergere Title: Ten years of PPP: An initial assessment Abstract: A public-private partnership (PPP) is a long-term contractual arrangement whereby the government calls on a company or a consortium formed for the purpose to design, build, finance and maintain a structure or facility necessary for its public-service mission. The company or consortium is subsequently remunerated according to the availability and performance of the structure or facility. The remuneration must enable the company or consortium to repay its initial investment and cover the financing costs and the services it provides. In a broad sense PPPs have long existed in France under various names and in various forms, marking the history of the development of the country’s infrastructure networks. In the modern sense, corresponding to the partnership contract (contrat de partenariat now renamed “machés de partenariat” since 2015) created in 2004 and covering all-inclusive government-pay contracts, PPPs have made significant inroads in certain sectors of public management such as social infrastructure (schools, hospitals, prisons, etc.). As a result France topped the European PPP league table in 2011-12, though PPPs remain a niche market overall in relation to the total amount of public procurement. Now, ten years later, it is possible to take stock, in both qualitative and quantitative terms, of projects initiated and carried out. This report aims to show the impact and effects of this new public procurement resource, sector by sector, in facts and figures, and to illustrate the contributions it has made and the feedback it has generated by major type of project and by public-sector initiator, from municipalities to central government agencies. JEL classification: H40, H5, H83 Keywords: Infrastructure, partnership contracts, public private partnerships, public procurement Journal: OECD Journal on Budgeting Classification-JEL: H40; H5; H83 Year: 2016 Pages: 31-123 Volume: 15 Issue: 1 Handle: RePEc:oec:govkaa:5JM3RX2QBXBQ Template-type: ReDIF-Article 1.0 Author-Name: Lisa von Trapp Author-Name: Ian Lienert Author-Name: Joachim Wehner Title: Principles for independent fiscal institutions and case studies Abstract: Independent fiscal institutions serve to promote sound fiscal policy and sustainable public finances. Today IFIs are considered among the most important innovations in the emerging architecture of public financial management. Within the OECD area, their number has more than tripled and is expected to continue to rise. This publication provides a unique set of in depth case studies of IFIs in 18 OECD member countries in light of many of the good practices for effective IFIs identified in the OECD Recommendation on Principles for Independent Fiscal Institutions. Keywords: Parliamentary Budget Office(s), financial management, fiscal councils, fiscal policy, independent fiscal institutions, public finances, transparency, legislature Journal: OECD Journal on Budgeting Classification-JEL: H11; H50; H83 Year: 2016 Pages: 9-24 Volume: 15 Issue: 2 Handle: RePEc:oec:govkaa:5JM2795TV625 Template-type: ReDIF-Article 1.0 Author-Name: Trevor Shaw Title: Performance budgeting practices and procedures Abstract: This article examines performance budgeting practices and reforms in five OECD member countries: Canada, Ireland, the Netherlands, the United Kingdom and the United States. In each case, three dimensions of performance budgeting are analysed: performance information and monitoring, evaluation, and spending review. Reflecting upon the common experiences in each country, generalised analytical considerations are presented for practitioners planning and implementing current and future performance budgeting reforms. JEL classification: H50, H60, H61 Keywords: performance budgeting, performance-based budgeting, PBB, budget reform, performance information, Canada, Ireland, the Netherlands, the United Kingdom, the United States Journal: OECD Journal on Budgeting Classification-JEL: H50; H60; H61 Year: 2016 Pages: 65-136 Volume: 15 Issue: 3 Handle: RePEc:oec:govkaa:5JLZ6RHQDVHH Template-type: ReDIF-Article 1.0 Author-Name: Jón R. Blöndal Author-Name: Lisa von Trapp Author-Name: Erik Hammer Title: Budgeting in Italy Abstract: Italy is in the process of making significant reforms to its budgeting process. This report provides a comprehensive overview of the Italian budgeting system and the envisaged reforms. It also offers a number of specific recommendations for further consideration as Italy advances its reform agenda. The report has been peer reviewed by OECD Senior Budget Officials. JEL Classification: H50, H61, H83, O52 Keywords: Italy, Stability Law, spending reviews, medium-term expenditure frameworks Journal: OECD Journal on Budgeting Classification-JEL: H50; H61; H83; O52 Year: 2016 Pages: 37-64 Volume: 15 Issue: 3 Handle: RePEc:oec:govkaa:5JM0QG8KQ1D2 Template-type: ReDIF-Article 1.0 Author-Name: Christine Wong Title: Budget reform in China: Progress and prospects in the Xi Jinping era Abstract: Fiscal reforms were central to the comprehensive programme of reforms announced at the Third Plenum of the 18th Party Congress in November 2013, during the first year of the Xi Jinping administration. One of the significant reforms on focus is public financial management (PFM). The urgency of PFM reform can be traced, paradoxically, to the extraordinary growth experienced by the Chinese economy during the first decade of this century, when easy money and weak accountability gave rise to unprecedented waste, corruption, and a mountain of local government debt. Keywords: China, economy, reform, budget, public financial management, intergovernmental, local government, debt Journal: OECD Journal on Budgeting Classification-JEL: E62; E65; E66; H3; H5; H6; H7; H8; O23; O53; P2; P3; P5 Year: 2016 Pages: 27-36 Volume: 15 Issue: 3 Handle: RePEc:oec:govkaa:5JM0ZBTM3PZN Template-type: ReDIF-Article 1.0 Author-Name: Sanjeev Gupta Author-Name: Sami Ylaoutinen Author-Name: Brian Olden Author-Name: Holger van Eden Author-Name: Teresa Curristine Author-Name: Tom Josephs Author-Name: Eliko Pedastsaar Author-Name: Johann Seiwald Title: Budget institutions in low-income countries Abstract: This paper presents 12 budget institutions that can support planning and delivery of credible fiscal strategies in the fiscal policy-making process. The resulting framework is applied to seven low-income countries and the status of their budget institutions compared to the G20 advanced and emerging market economies. The paper then presents recommendations for designing and implementing appropriate reform strategy for low-income countries. Particular attention is paid to prioritisation and sequencing of reform efforts. Keywords: Low Income Countries, Budget Institutions, Budget Reforms Journal: OECD Journal on Budgeting Classification-JEL: H60; H61; H83 Year: 2016 Pages: 9-25 Volume: 15 Issue: 3 Handle: RePEc:oec:govkaa:5JM0ZBTMNNMS Template-type: ReDIF-Article 1.0 Author-Name: Ronnie Downes Author-Name: Scherie Nicol Title: Review of budget oversight by parliament: Ireland Abstract: Budget oversight by the Irish parliamentary chambers, the Houses of the Oireachtas, is under-developed by international standards. Many stakeholders and participants question whether the existing process is meaningful or impactful. Nevertheless, there is a strong momentum for reform with Ireland’s public administration. Against this background, the OECD presents in this report an analysis of the strengths and weaknesses of Ireland’s system of parliamentary engagement in budgeting, and outlines a number of proposals for continued reform by reference to international experience, for consideration by the Houses of the Oireachtas and by other institutional actors and by the political system more generally. JEL Classification: H5, H57, H60 Keywords: Budget process, Dáil, Ireland, Oireachtas, parliament, public administration Journal: OECD Journal on Budgeting Classification-JEL: H5; H57; H60 Year: 2016 Pages: 65-111 Volume: 16 Issue: 1 Handle: RePEc:oec:govkaa:5JLV0R0G8ZD7 Template-type: ReDIF-Article 1.0 Author-Name: Delphine Moretti Title: Accrual practices and reform experiences in OECD countries Results of the 2016 OECD Accruals Survey Abstract: Over the past two decades, a growing number of governments have begun moving away from pure cash accounting toward accrual accounting. In the wake of these reforms, the budget presentation, audit techniques, and accounting standards setting and consolidation practices have evolved significantly. This paper reviews the current accrual practices in OECD countries, challenges associated with accruals reforms, and assesses the benefits achieved. It finally considers initiatives in OECD countries to make better use of accrual information in the future. JEL Classification: H60, H83 Keywords: accrual accounting, accrual budgeting, accounting practices, budgeting practices, consolidation, external audit, accounting standard setting. Journal: OECD Journal on Budgeting Classification-JEL: H60; H83 Year: 2016 Pages: 9-28 Volume: 16 Issue: 1 Handle: RePEc:oec:govkaa:5JLV2JX2MTZQ Template-type: ReDIF-Article 1.0 Author-Name: Marc Robinson Title: Budget reform before and after the global financial crisis Abstract: Budgeting techniques are undergoing major change in many OECD countries in the wake of the global financial crisis. As part of this, many of the directions of pre-crisis budgeting reform are being critically reviewed. This paper reviews the past and future of budgeting reform. It also considers what will be needed to develop a more robust analytical framework within which to map future reform directions. JEL codes: E62, H12, H50, H55, H61 Keywords: fiscal discipline, allocative efficiency, prioritization, value-for-money, reallocation, accrual accounting, accrual budgeting, performance budgeting, programme budgeting, fiscal rules, expenditure rules, expenditure ceilings, expenditure carryover, actor/motivation frameworks, legal principles framework. Journal: OECD Journal on Budgeting Classification-JEL: E62; H12; H50; H55; H61 Year: 2016 Pages: 29-63 Volume: 16 Issue: 1 Handle: RePEc:oec:govkaa:5JLVC85W7NKF Template-type: ReDIF-Article 1.0 Author-Name: Ben Smith Owusu Bempah Title: Determinants of sound budgeting and financial management practices at the decentralised level of public administration Abstract: This study employs path analyses to explain the determinants of implementation of sound budgeting and financial management practices at the local level of public administration. This paper recommends strengthening strategic planning, characteristics of implementing agencies, contextual factors and the disposition of management teams to achieve sound budgeting and financial management practices. Further recommendations are made for future research. JEL classification: H6, H51 Keywords: Strategic planning, budgeting and financial management practices                                                       Journal: OECD Journal on Budgeting Classification-JEL: H51; H6 Year: 2017 Pages: 109-128 Volume: 16 Issue: 2 Handle: RePEc:oec:govkaa:5JG19MNF3VR1 Template-type: ReDIF-Article 1.0 Author-Name: Ronnie Downes Author-Name: Delphine Moretti Author-Name: Trevor Shaw Title: Budgeting in Sweden Abstract: Sweden’s budget reforms of the 1990s, which were intended to introduce greater clarity, transparency and rigour to fiscal policy-making, have proven influential throughout Europe and across the OECD. This report finds that the budget framework has demonstrated resilience and that it continues to command confidence among the broad range of budgetary stakeholders. However, a number of tensions are apparent as the framework responds to the challenges and priorities of post-crisis budgeting, and each of its key dimensions has been undergoing review and adaptation. Future reforms should focus on addressing a certain fragmentation apparent in some areas (such as performance information, evaluation, public investment strategy and fiscal risk). Sweden’s advanced and pioneering practices, in areas such as cross-government collaboration and gender budgeting, may also benefit from more open, participative and citizen-facing initiatives in policy design and performance accountability. Keywords: Sweden, budget process, gender budgeting, performance budgeting, accruals. Journal: OECD Journal on Budgeting Year: 2017 Pages: 9-74 Volume: 16 Issue: 2 Handle: RePEc:oec:govkaa:5JG1F8P0JH7B Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Title: Enhancing the finance function in line ministries Abstract: Despite fulfilling a crucial role in the delivery of public services, the finance function of line ministries has received little attention both in the past and in the present. This paper will focus on the finance function in line ministries, explain why a strong finance function is of paramount importance in the current era of lean and compact government and identify the reforms that need to be implemented in order to make this possible. Keywords: Financial management, line ministries, financial control model, budget process. Journal: OECD Journal on Budgeting Classification-JEL: H41; H50; H61 Year: 2017 Pages: 75-92 Volume: 16 Issue: 2 Handle: RePEc:oec:govkaa:5JG30CCHBF5K Template-type: ReDIF-Article 1.0 Author-Name: Fiachra Kennedy Author-Name: John Howlin Title: Spending reviews in Ireland – Learning from experience Abstract: This article examines the Irish experience of spending reviews and seeks to identify key lessons that should enhance the effectiveness of this process both in Ireland and in other OECD countries. Since the beginning of the economic and financial crisis, spending reviews have played an important role in Ireland’s efforts to restore expenditure policy to a more sustainable footing. However, the purpose of future reviews will move from improving the deficit position to ensuring all expenditure is considered when Government is making budget decisions. The purpose of spending reviews is to increase the fiscal space available to government for new, high priority, policies. By systematically examining baseline expenditure using available evidence and data, the increasing tendency to focus only on incremental improvements in expenditure can be countered. Spending reviews should be used to further embed the principles of expenditure efficiency and effectiveness into the wider budget process. This can be facilitated through extending the availability of relevant evaluations and performance information and ensuring such evaluations become central to the budgetary process. Keywords: spending reviews, programme evaluations, performance budgeting, budget reform, performance information, efficiency, effectiveness. Journal: OECD Journal on Budgeting Classification-JEL: H50; H60; H83 Year: 2017 Pages: 93-108 Volume: 16 Issue: 2 Handle: RePEc:oec:govkaa:5JG30CCHF0G0 Template-type: ReDIF-Article 1.0 Author-Name: Ronnie Downes Author-Name: Lisa von Trapp Author-Name: Scherie Nicol Title: Gender budgeting in OECD countries Abstract: Gender gaps persist in education, employment, entrepreneurship and public life opportunities and outcomes. Gender budgeting involves using the tools, techniques and procedures of the budget cycle in a systematic way to promote equality. Responses to the 2016 OECD Survey of Gender Budgeting Practices show that almost half of OECD countries have introduced, plan to introduce or are actively considering the introduction of gender budgeting. The OECD analysis demonstrates that a wide variety of gender budgeting approaches are practised. Only half of OECD countries can currently point to specific examples of impact, however a wider range of impacts may become more evident in the future since the introduction of gender budgeting is relatively recent in many countries. Useful areas for further study and policy action include: the routine availability of gender-disaggregated data; embedding of genderspecific approaches within the normal annual routines of budgeting; and complementing executive-led approaches with external quality assurance. JEL codes:H54, H60, H61 Keywords: Gender budgeting, gender equality, budgetary process, budgeting practices                 Journal: OECD Journal on Budgeting Classification-JEL: H54; H60; H61 Year: 2017 Pages: 71-107 Volume: 16 Issue: 3 Handle: RePEc:oec:govkaa:5JFQ80DQ1ZBN Template-type: ReDIF-Article 1.0 Author-Name: Ronnie Downes Author-Name: Knut Klepsvik Author-Name: Joung-Jin Jang Author-Name: Jaehyuk Choi Author-Name: Maya Gusarova Author-Name: Deanna Aubrey Author-Name: Naida Carsimamovic Title: Strengthening budget institutions in Public Expenditure Management Peer Assisted Learning (PEMPAL) countries: Results of the 2013-14 OECD PEMPAL Budget Practices and Procedures Survey Abstract: This report is the result of a survey conducted in 2013 and finalised in 2014. The survey was based on self-reporting by 33 OECD and 13 PEMPAL countries and involved the participation of OECD and World Bank staff. This report is organised according to 7 main dimensions of the budget process. These 7 dimensions is addressed in greater detail in sections 2 to 8. JEL codes: H11, H50, H60, H70 Keywords: PEMPAL, Fiscal sustainability, MTEF, capital budgeting, budgeting techniques, performance budgeting, budget transparency, budgetary governance.                                                           Journal: OECD Journal on Budgeting Classification-JEL: H11; H50; H60; H70 Year: 2017 Pages: 109-209 Volume: 16 Issue: 3 Handle: RePEc:oec:govkaa:5JFQ810F35VC Template-type: ReDIF-Article 1.0 Author-Name: Camila Vammalle Author-Name: Ana Maria Ruiz Rivadeneira Title: Budgeting in Chile Keywords: Chile, budget process, DIPRES, fiscal sustainability, CODELCO Journal: OECD Journal on Budgeting Year: 2017 Pages: 9-70 Volume: 16 Issue: 3 Handle: RePEc:oec:govkaa:5JFW22B3C0R3 Template-type: ReDIF-Article 1.0 Author-Name: Patrick Dunleavy Title: Public sector productivity: Measurement challenges, performance information and prospects for improvement Abstract: Improving productivity at the organisational level offers the greatest immediate dividends and could successfully cover the largest departments and agencies at the central or national level. For many decades the measurement of government outputs in national statistics and economic accounts used inputs, which assumes that government productivity neither grows nor falls. Modern solutions exist however, that can generate empirically useful metrics of total outputs from which stakeholders could learn key lessons about the productivity of their agencies over time. This article outlines the tools needed to apply these modern solutions and offers recommendations for improving cross-national productivity data for government. JEL Codes: H10, H11, H30 Keywords: Productivity measurement, core inputs, quality weighting, labour, regression analysis                                                     Journal: OECD Journal on Budgeting Classification-JEL: H10; H11; H30 Year: 2017 Pages: 1-28 Volume: 17 Issue: 1 Handle: RePEc:oec:govkaa:5JFJ7VB36P5C Template-type: ReDIF-Article 1.0 Author-Name: Trevor Shaw Title: Long-term fiscal sustainability analysis: Benchmarks for Independent Fiscal Institutions Abstract: External evaluation is one of the key principles recommended by the OECD for an Independent Fiscal Institution to function well. External evaluations could take the form of periodic reviews of selected pieces of work, regular annual evaluations of the quality of analysis, permanent installations such as an advisory panel or board, or peer reviews by an IFI in another country.                                                              Keywords: Independent Fiscal Institution, benchmarks, long-term fiscal sustainability, good practices Journal: OECD Journal on Budgeting Classification-JEL: H11; H50; H83 Year: 2017 Pages: 1-27 Volume: 17 Issue: 1 Handle: RePEc:oec:govkaa:5JFJB4LCPKHH Template-type: ReDIF-Article 1.0 Author-Name: Camila Vammalle Author-Name: Ana Maria Ruiz Author-Name: Ronnie Downes Title: Budgeting in Oaxaca Abstract: Oaxaca recently experienced a period of rapid growth of public expenditure, in response to social and economic priorities. These increases in expenditure were not accompanied with corresponding increases in actual revenues, thus leading to the build-up of deficits. In 2013, the state embraced a consolidation plan, increasing revenue collections and cutting public expenditure and investment, aiming to restore budgetary balance by 2016. The Secretariat of Finance of Oaxaca has recently introduced a more robust legal framework to ensure fiscal sustainability, and avoid such policy fluctuations in the future. Despite recent improvements, there is still space to improve budget practices towards a more planned, accountable, participative and transparent budget process, as well as having an institutional and legal framework in place to ensure these practices have continuity between administrations.                                                        Keywords: Oaxaca, Supreme Audit Institution, own-revenues, budget deficit, consolidation policies Journal: OECD Journal on Budgeting Classification-JEL: H70; H71; H72 Year: 2017 Pages: 1-56 Volume: 17 Issue: 1 Handle: RePEc:oec:govkaa:5JFJB4LCSGZW Template-type: ReDIF-Article 1.0 Author-Name: Ronnie Downes Author-Name: Delphine Moretti Author-Name: Scherie Nicol Title: Budgeting and performance in the European Union: A review by the OECD in the context of EU budget focused on results Abstract: The European Union has a unique system of institutions and relationships between different levels of government resulting in a close attention to the performance aspects of budgeting. The EU system of budgeting for performance and results is advanced and highly specified, scoring higher than any OECD country in the standard index of performance budgeting frameworks. Aimed at improving the effectiveness of the EU budget in contributing to the achievement of EU objectives for growth, the EU Budget Focused on Results initiative is one that is gaining more focus and importance since it was launched in 2015. This report is the OECD’s independent assessment of how the EU model of budgeting for performance and results compares with good practice around the world, in line with the long-established practice of OECD Budget Reviews; and offers suggestions for how the current reform agenda might be advanced. JEl Codes: H50, H61, H83 Keywords: Europe 2020, Multiannual Financial Framework, Annual Management and Performance Report, European Court of Audit, EU Budget Focused on Results Journal: OECD Journal on Budgeting Classification-JEL: H50; H61; H83 Year: 2017 Pages: 1-60 Volume: 17 Issue: 1 Handle: RePEc:oec:govkaa:5JFNX7FJ38R2 Template-type: ReDIF-Article 1.0 Author-Name: Camila Vammalle Author-Name: Ana Maria Ruiz Rivadeneira Author-Name: Chris James Author-Name: Lorena Prieto Author-Name: Vilma Montañez Title: Financing and budgeting practices for health in Peru Abstract: Peru has made substantial progress towards achieving UHC. Increases in access to healthcare and financial protection had a positive impact in health outcomes. Despite this progress, major efforts are needed to reduce fragmentation and increase efficiency in the health system as a whole. Creating formal coordination mechanisms and improving capacity at the subnational level are key elements to ensure that any additional resource spent has a great positive impact in Peru’s health care system. The well-developed and highly institutionalised PPR methodology in Peru can inspire other countries in the LAC region. However, other budgetary practices could be better aligned with OECD recommendations of good budgetary governance. In particular, making the approved budget closer to what is expected to be executed would greatly increase the usefulness of the budget, showing how resources are prioritised and how annual policy objectives are to be achieved. JEL codes: H5, H60, I11, I18 Keywords: Universal health coverage UHC, Peru, health expenditures, budget formulation, budget execution, budget monitoring, fiscal sustainability of health systems                                                   Journal: OECD Journal on Budgeting Classification-JEL: H5; H60; I11; I18 Year: 2018 Pages: 25-64 Volume: 17 Issue: 2 Handle: RePEc:oec:govkaa:5J8V16G3CZTH Template-type: ReDIF-Article 1.0 Author-Name: James Savage Author-Name: Johannes Siter Title: The European Union budget and the European refugee and migration crises Abstract: This article examines how the European Union has addressed the dramatic influx of refugees through programmes funded by the EU budget. This migratory surge has placed significant and unexpected fiscal demands on the EU’s current multi-year budgetary framework. As a result, the EU has been forced to employ a variety of budgetary procedures and new fiscal instruments to give it the fiscal flexibility it needs to fund programmes administered inside and outside the EU. Some of these very new fiscal instruments add an additional layer of complexity to the current funding architecture, and it is too early to determine how well these spending practices stand up to Parliamentarian oversight, monitoring, auditing, and regular reporting.                                                       Keywords: European Union, European Union budget, refugee and migration crisis, budgetary flexibility, Multiannual Financial Framework (MFF) 2014-2020 Journal: OECD Journal on Budgeting Classification-JEL: H11; H53; H83 Year: 2018 Pages: 127-139 Volume: 17 Issue: 2 Handle: RePEc:oec:govkaa:5J8WGM2QNSVG Template-type: ReDIF-Article 1.0 Author-Name: Giuseppe Catalano Author-Name: Angelo Erbacci Title: A theoretical framework for spending review policies at a time of widespread recession Abstract: The aim of this paper is to propose a first theoretical framework for medium term spending reviews that determines the main factors affecting the use of these spending reviews and their impact, at a time of widespread recession. As result, it identifies four dimensions (political, social, organisational and operational) and one dynamic element (time) that influence the performance of spending reviews and should be considered in approaching this tool. Finally this paper introduces some theoretical and policy considerations, concerning both how to effectively address the five elements that influence the spending review and how a government should design this tool. JEL codes: H50, H61, H83 Keywords: Spending reviews, recession, performance budgeting, cutback management                                                       Journal: OECD Journal on Budgeting Classification-JEL: H50; H61; H83 Year: 2018 Pages: 9-24 Volume: 17 Issue: 2 Handle: RePEc:oec:govkaa:5J8Z25K1LTJC Template-type: ReDIF-Article 1.0 Author-Name: Delphine Moretti Title: Rationalising government fiscal reporting: Lessons learned from Australia, Canada, France and the United Kingdom on how to better address users' needs Abstract: In OECD countries, fiscal reports are increasingly sophisticated, highlighting governments’ commitment to fiscal transparency and accountability towards parliaments and citizens. However, users regularly express concerns with these documents, revealing a fundamental “paradox” with government fiscal reporting: desire for detail and sophistication may come at the expense of clarity. Against this background, this paper looks at four countries (Australia, Canada, France and the United Kingdom) that have endeavoured to resolve this paradox by rationalising their fiscal reporting with the aim of making it more legible for users and draws a short set of implications for other countries looking to strengthen and rationalise their fiscal reporting practices. JEL Codes: H50, H60, H83 Keywords: fiscal reporting, accountability, transparency                                                     Journal: OECD Journal on Budgeting Classification-JEL: H50; H60; H83 Year: 2018 Pages: 65-125 Volume: 17 Issue: 2 Handle: RePEc:oec:govkaa:5J8Z25LSPHQ8 Template-type: ReDIF-Article 1.0 Author-Name: Ronnie Downes Author-Name: Emilie Gay Author-Workplace-Name: CABRI Author-Name: Dirk-Jan Kraan Title: Budgeting for a sustainable future Towards a roadmap of budgetary governance reform in Timor-Leste Abstract: Despite being one of the newest countries in the world today, Timor-Leste has made great progress in building its institutions and economic capacity.With international support, Timor-Leste aims to improve its public financial management systems according to global benchmarks. Grounded upon the principles of the OECD’s Recommendation on Budgetary Governance and building on existing diagnostic and analytical materials this review performs a fresh assessment of the country’s current financial management systems and outlines a practical “roadmap” for progress in key areas of budgeting and planning over coming years. Keywords: Timor-Leste, budgetary governance, MTEF, spending reviews, programme budgeting Journal: OECD Journal on Budgeting Classification-JEL: H50; H61; H83 Year: 2018 Pages: 9-93 Volume: 17 Issue: 3 Handle: RePEc:oec:govkaa:5J8MNZVD2RMN Template-type: ReDIF-Article 1.0 Author-Name: Joseph White Title: Long-term budgeting: A cautionary tale from U.S. experience Abstract: There is a growing tendency, among central budget-makers and commentators, to argue budgets should be made for the long-term, rather than the traditional annual budget. This tendency is especially strong in the United States, where it has become virtually a conventional wisdom. This article explains, first, why that approach fits very poorly with most of the goals of budgeting. It then evaluates U.S. experience with approximations of long-term budgeting of three types: i) medium-term limits on discretionary spending, ii) the Social Security programme, and the iii) Medicare programme. That experience illustrates the reasons why long-term budgeting would not be a positive reform. They include the fantastical nature of many long-term forecasts, strong incentives for both deception and self-deception about the effects of planned budget totals, and ignoring the basic task of budgeting, which is to reconcile preferences about policy details to preferences about budget totals in a way that considers each. Keywords: Accountability, Efficiency, Forecasting, Health, Long-term, Pensions, Representation, United States Journal: OECD Journal on Budgeting Classification-JEL: H11; H41; H50; H68 Year: 2018 Pages: 129-178 Volume: 17 Issue: 3 Handle: RePEc:oec:govkaa:5J8MXQLPL98N Template-type: ReDIF-Article 1.0 Author-Name: Chris James Author-Name: Michael Gmeinder Author-Workplace-Name: OECD Author-Name: Ana Maria Ruiz Rivadeneira Author-Name: Camila Vammalle Title: Health financing and budgeting practices for health in South Africa Abstract: South Africa has made substantial progress in developing its health care system since 1994. Universal access is a fundamental principle of the Constitution and health sector policies, and health outcomes have improved on aggregate. However, health inequities remain an important challenge today. Focusing on public financial management and the budgeting process for health, South Africa has a clear, well-structured and transparent process to budget formulation from national to provincial governments. But this transparency does not fully transmit on allocation decisions to health from provincial treasuries. In terms of budget execution, up-to-date data reporting systems, strict enforcement of fiscal rules, and well-developed monitoring processes are good budgetary practices. However, despite good aggregate spending levels, there is great disparity in the way provinces execute their budget. Finally, South Africa has well-established monitoring processes. However, the link between performance indicators and the budget process remains limited and could be strengthened.                                                    Keywords: South Africa, two-tier health system, private health insurance, NHI, budget formulation, budget execution Journal: OECD Journal on Budgeting Classification-JEL: H51; H60; I11; I18 Year: 2018 Pages: 95-126 Volume: 17 Issue: 3 Handle: RePEc:oec:govkaa:5J8SD88T3SR3 Template-type: ReDIF-Article 1.0 Author-Name: Bernard Omollo Title: Public financial management reforms and fiscal policy-a qualitative content analysis of the impact of PFM reforms on country budget income in Sub-Sahara Africa: A case for Kenya and Rwanda Abstract: Public Financial Management (PFM) reform is a central fiscal policy feature. However, previous studies and reforms in developing countries have been mixed, with literature mainly taking two broad approaches: Descriptive studies seeking to explain the types of reforms undertaken, modelled along governments' establishment of new institutions; enactment of fiscal legislation; budgeting and accounting processes re-engineering; and adoption of information technology. The second approach by researchers has been along comparative assessments, limited to cross-country comparisons of PFM performance ratings. This research assumed an impact based qualitative content analysis to establish the necessary PFM reform policy factors that supports country PFM reforms that could contribute towards budget income in Kenya and Rwanda. We find that Political will and government stance on corruption: unique country context and clarity on reform areas; including the adoption of the measurable results framework are critical. Others such as Reforms visibility; Processes and institutionalisation of reforms; as well as Performance standards, rewards and sanctions were all necessary policy factors for PFM reforms to potentially contribute towards budget impact as evidenced in our case for Rwanda. In contrast, limitation of such policy factors in PFM value chain undermines the fiscal impact of reforms as found in Kenya. Keywords: Public Financial Management, Kenya, Rwanda, PEFA, budget                                                Journal: OECD Journal on Budgeting Classification-JEL: H51; H6 Year: 2018 Pages: 167-201 Volume: 18 Issue: 1 Handle: RePEc:oec:govkaa:5J8L804FVJ8V Template-type: ReDIF-Article 1.0 Author-Name: Delphine Moretti Author-Name: Tim Youngberry Title: Getting added value out of accruals reforms Abstract: After three decades of public financial management reforms, around three quarters of OECD countries are using accrual accounting with some adopting accrual budgeting as well (OECD Accruals 2016 Survey). This is however a sensitive time: questions are increasingly being raised on the cost and usefulness of accrual reforms, whose impacts on public management and performance are not obvious to many stakeholders. Against this background, this study brings together the experience of eleven countries that have introduced accrual accounting and/or accrual budgeting into their public sector. It aims at summarizing initial objectives of accrual reforms, countries’ own assessment of how well these objectives have been achieved and propose recommendations on how finance ministries should go about achieving maximum outcomes from their transition to accrual accounting. JEL code : H50, H60, H83 Keywords : accrual accounting, accrual reform, budgeting, transparency, performance                                                      Journal: OECD Journal on Budgeting Year: 2018 Pages: 114-166 Volume: 18 Issue: 1 Handle: RePEc:oec:govkaa:5J8L804HPVMT Template-type: ReDIF-Article 1.0 Author-Name: Jan van Helden Author-Name: Christoph Reichard Title: Cash or accruals for budgeting? Why some governments in Europe changed their budgeting mode and others not Abstract: This paper investigates why central governments in some countries (especially the UK and Austria) have moved from a cash budgeting system to accrual budgeting, while others (particularly Belgium and Portugal) continue to use cash budgeting, given that both groups of countries share that their financial reporting system have become accruals-based. Our research shows that the two countries opting for a complete change to accruals emphasise the importance of consistency of the entire accounting system and the imperative to inform also about resource consumption in the budget. In sharp contrast, the two countries deciding for a partial change and for staying with cash budgeting argue that a clear and unambiguous view at cash spending is authoritative for their budgeting concept and that political decision makers would not accept an accrualbased budget. The change process in all four countries was influenced by several contextual factors, such as cash-accounting legacies and previous NPM-reforms. We conclude that stakeholders in government show more reluctance when deciding on a budgeting concept than about a financial reporting change which is perceived as less essential. We also conclude that the less ambitious reform mode (cash-based budgeting with accrual financial reporting) takes more implementation time than the more ambitious reform mode (accruals for budgeting and reporting). JEL codes: H61, H83, M41 Keywords: cash budgeting, accrual budgeting, international comparison                                                Journal: OECD Journal on Budgeting Classification-JEL: H61; H83; M41 Year: 2018 Pages: 91-113 Volume: 18 Issue: 1 Handle: RePEc:oec:govkaa:5J8L804PQ0G8 Template-type: ReDIF-Article 1.0 Author-Name: Ronnie Downes Author-Name: Lisa von Trapp Author-Name: Juliane Jansen Title: Budgeting in Austria Abstract: Over the past decade Austria has undertaken a carefully-considered and ambitious series of modern budgeting reforms. Evaluation of the budget reforms was purposely built into the reform process. The budget law provides for an external evaluation no later than 2017. To meet these obligations, Austria’s Federal Ministry of Finance (Bundesministerium für Finanzen, BMF) set in place a comprehensive evaluation process in three parts during 2017. A first review conducted by the IMF focused on fiscal transparency. This second review, carried out by the OECD, covers budgetary management, performance budgeting and related issues. A third review by the Alpen- Adria University is focused on the financial management and reporting system including accrual accounting; as well as preparation of a synthesis report drawing upon the three stand-alone studies. The external evaluation exercises come after an internal evaluation conducted by the BMF which has considered several of these topics; some reforms have already been implemented, or are now underway, on foot of that internal review. JEL codes: H50, H61, H83 Keywords: Budget reforms, performance, impact assessment, financial management, transparency, cash and accruals financial reporting                                                  Journal: OECD Journal on Budgeting Classification-JEL: H50; H61; H83 Year: 2018 Pages: 9-88 Volume: 18 Issue: 1 Handle: RePEc:oec:govkaa:5J8L804WG0KF Template-type: ReDIF-Article 1.0 Author-Name: Sierd Hadley Author-Name: Dirk-Jan Kraan Author-Name: Bryn Welham Title: Recent developments in the work of the Budget Office Abstract: This article describes the changes that have taken place in the work of the Budget Office of the central government as a consequence of the transition from the traditional budget process, often referred to as “incremental budgeting”, to top-down budgeting. This transition has taken place in most OECD countries in the course of the last three decades and has generally led to the end of the century-old trend of growth of the public sector relative to GDP. As a consequence of this transition the role of the budget office has shifted from operational expenditure control to supervision on the maintenance of the medium term expenditure framework. In general this has led to a more co-operative relationship between the Budget Office and the financial divisions of the line ministries. This article is based on case studies in three countries, namely the United Kingdom, the Netherlands and Slovenia and highlights the differences in their budgeting procedures and the extent to which the transition to top-down budgeting has been implemented. Keywords: Top-down budgeting, Incremental budgeting, Fixed and flexible medium term expenditure frameworks, Decentralisation of operational expenditure control to line ministries, Institutions and behavioual patterns as determinants of budgetary outcomes Journal: OECD Journal on Budgeting Classification-JEL: H30; H50; H60 Year: 2018 Pages: 151-195 Volume: 18 Issue: 2 Handle: RePEc:oec:govkaa:5J8FZ1K92GVH Template-type: ReDIF-Article 1.0 Author-Name: Soonhee Kim Author-Workplace-Name: Korea Development Institute Author-Name: Junesoo Lee Author-Name: Jooho Lee Title: Citizen participation and public trust in local government: The Republic of Korea case Abstract: Over the past decades, leaders and citizens in many countries have lamented the lack of transparency in government and declining citizens’trust in government. South Korea is not an exception. In order to restore trust in government, the Korean government has made considerable efforts to adopt and promote various citizen participation programmes at all levels of government in an effort to ensure accountability, improve transparency and trust in government. This article first discusses the importance of citizen participation as a means of improving transparency and trust in government. It then introduces offline and online citizen participation programmes run by central agencies and local governments and highlight how those citizen participation programmes have evolved. As one specific form of citizen participation practice, this article focuses on the practice of Participatory Budgeting (PB) as an effort to enhance transparency and citizens’trust in government by opening its processes and disclosing budgeting information to the public. Most especially, this article reveals the results of a PB survey of local governments in Korea and discusses why and how PB has been adopted, implemented, and designed to improve budget-related governance structure, policy-making processes, and outputs such as efficiency, accountability, transparency, and trust in government. Lastly, this article discusses policy implications for enhancing public trust in government through PB. Keywords: Citizen Participation, Participatory Budgeting, Transparency, Trust, South Korea Journal: OECD Journal on Budgeting Classification-JEL: H40; H50; H70 Year: 2018 Pages: 73-92 Volume: 18 Issue: 2 Handle: RePEc:oec:govkaa:5J8FZ1KQP8D8 Template-type: ReDIF-Article 1.0 Author-Name: Joseph Capuno Author-Name: Ana Maria Ruiz Rivadeneira Author-Name: Ivor Beazley Author-Name: Akiko Maeda Author-Name: Chris James Title: Health financing and budgeting practices for health in the Philippines Abstract: The Philippines has placed a strong emphasis on achieving Universal Health Coverage. In recent years, earmarked funds from new alcohol and tobacco taxes have substantially increased government funds available for health. This additional funding offers great potential to improve access and health outcomes, as long as the money is well spent. An important pre-requisite for effective spending is a strong budgetary process for health. In terms of budget formulation and planning, the Philippines government has – at the national level – introduced a comprehensive package of public financial management reforms that apply across all sectors. Keywords: Health for All (Kalusugang Pangkalahatan), Social Health Insurance, Devolution, Sin Tax Law, Local Investment Plan for Health Journal: OECD Journal on Budgeting Classification-JEL: H5; H60; I11; I18 Year: 2018 Pages: 93-149 Volume: 18 Issue: 2 Handle: RePEc:oec:govkaa:5J8JT0PT1HQ6 Template-type: ReDIF-Article 1.0 Author-Name: Delphine Moretti Author-Name: Dirk-Jan Kraan Title: Budgeting in France Abstract: During the last two decades, France introduced a series of far-reaching reforms intended to bring about greater transparency towards Parliament, autonomy and flexibility to public managers, and rigor in to fiscal policy making. Keywords: budgetary governance, fiscal transparency, public financial management, medium term planning, performance, budgeting, fiscal reporting. Journal: OECD Journal on Budgeting Classification-JEL: H50; H61; H83 Year: 2018 Pages: 8-72 Volume: 18 Issue: 2 Handle: RePEc:oec:govkaa:5J8JT0PT4C0Q Template-type: ReDIF-Article 1.0 Author-Name: Ivor Beazley Author-Name: Ronnie Downes Author-Name: Scherie Nicol Title: Budgeting in Kazakhstan: A roadmap for continued budgetary governance reform Abstract: The Republic of Kazakhstan is the largest economy in central Asia, and one of the fastestgrowing in the region. Having benefited from oil wealth as well as a diversifying andliberalised economy, Kazakhstan envisages a progressive modernisation of the political,administrative and juridical culture within the country. While strong progress has alreadybeen made on several fronts, other aspects of these envisaged reforms are at early stages.This OECD review takes stock of these reform efforts, and is designed to assist the nationalauthorities in charting a course for future reforms and innovations. Keywords: Nurly Zhol, National Fund, budget transparency, citizen engagement, gender budgeting, Budgetary oversight, Budgetary governance Journal: OECD Journal on Budgeting Classification-JEL: H50; H61; H83 Year: 2019 Pages: 9-80 Volume: 18 Issue: 3 Handle: RePEc:oec:govkaa:08310b83 Template-type: ReDIF-Article 1.0 Author-Name: Ivor Beazley Title: Financial Management in Government: Insights on Skills Development Abstract: Financial management is a critical capability for governments, enabling them to deliver on their priorities and fulfil promises made to parliament and citizens. Skilled human resources are the foundation of these capabilities. The Organisation for Economic Cooperation and Development’s (OECD) “Skills for a high performing civil service” framework identifies professional expertise as one of the three core skill areas that drive public value, together with strategic orientation and innovation. The task of providing the civil service with the right skills to carry out financial management functions has however become more challenging. Keywords: Public financial management, competency frameworks, Professional development, HRM process Journal: OECD Journal on Budgeting Classification-JEL: H10; H11; H83 Year: 2019 Volume: 18 Issue: 3 Handle: RePEc:oec:govkaa:10e09440 Template-type: ReDIF-Article 1.0 Author-Name: Chunsoon Kim Title: Who has power over the budget-The Legislature or the Executive?: A comparative analysis of budgetary power in 70 Countries Abstract: This paper aims to study the distribution of fiscal power between the legislature and the executive in each of the 70 countries analysed - by comparing Legislative Budget Institutions of 70 countries. This paper also provide practical insights for developing financial strategies that would ensure an appropriate distribution of fiscal authority between the legislature and the executive. Keywords: Fiscal Authority, budget operation, Independent fiscal institutions, organisational capacity Journal: OECD Journal on Budgeting Classification-JEL: H10; H60 Year: 2019 Volume: 18 Issue: 3 Handle: RePEc:oec:govkaa:c0869bd6 Template-type: ReDIF-Article 1.0 Author-Name: Camila Vammalle Author-Name: Ana Maria Ruiz Rivadeneira Title: Budgeting in Uruguay Towards modern budgeting practices in Uruguay Abstract: Uruguay is the only country in the world which has a five-year budget. A budget is prepared by each new government taking office and voted within 6 months of its swearing in, for the whole five-year government term. Each year, an annual revision (“budget update”) takes place, where the government reports budget implementation to the Parliament and some adjustments to the coming year’s budget can be made. Uruguay has done significant improvements in budget management in the last decade since 2005, achieving great results in terms of financial stability and funding predictability for spending institutions. The governance of the budget process has shifted, with the leadership for the budget process being now in the National Budget Unit and the Macroeconomic Assessment Unit (both located in the Ministry of Economy and Finance), and the Office of Planning and Budget (located in the Presidency) developing planning functions. While the new roles and responsibilities seem quite clear today, they are not yet institutionalised. This budget review aims to provide a detailed description of how Uruguay’s budget institutions work today and present roles and responsibilities of each actor in the budget process. It also analyses Uruguay’s budget practices in the light of OECD countries best practices, and proposes policy recommendations for further modernising Uruguay’s budget process, in particular in the areas of aligning the budget with medium-term strategic planning and measuring results.EL codes: H50, H61, H80Keywords: Uruguay, Five-year budget, Budget process, Strategic planning Keywords: Uruguay, Five-year budget, Budget process, Strategic planning Journal: OECD Journal on Budgeting Classification-JEL: H50; H61; H80 Year: 2019 Pages: 171-197 Volume: 19 Issue: 1 Handle: RePEc:oec:govkaa:4ff4bfce Template-type: ReDIF-Article 1.0 Author-Name: Daniel Acquah Author-Name: Katazyna Lisek Author-Name: Stephane Jacobzone Title: The Role of Evidence Informed Policy Making in Delivering on Performance: Social Investment in New Zealand Abstract: This case study represents the first in a planned series of studies on the ‘The Role of Evidence Informed Policy Making in Delivering in Performance’. The case study is based on both interviews with key stakeholders and desk research. It focuses on the social investment approach in New Zealand, which is an evolving approach to thinking long-term and making informed choices on how best to improve people’s wellbeing. Social investment brings together different tools and approaches to good governance, building on the respective strengths of performance management and evidence informed policy making. At its core, social investment involves using data and evidence to understand customer needs from a person centric and long-term perspective, proposing innovative solutions that meet citizens’ needs and deliver financial savings, evaluating programmes to identify what works and what doesn’t, and publishing these results openly and feeding findings into the next set of decisions. The case study concludes with a number of recommendations for improving the social investment approach in New Zealand. These recommendations are also relevant to other jurisdictions trying to strengthen the capacity for evidence informed policy making. Keywords: Evidence Informed Policy Making, Performance Management, Policy Evaluation, Social Investment Journal: OECD Journal on Budgeting Classification-JEL: H41; H50; H60 Year: 2019 Pages: 171-197 Volume: 19 Issue: 1 Handle: RePEc:oec:govkaa:74fa8447 Template-type: ReDIF-Article 1.0 Author-Name: Delphine Moretti Author-Name: Scherie Nicol Author-Name: Emeline Denis Author-Name: Tim Youngberry Title: Financial reporting in Ireland Abstract: The OECD Review of Financial Reporting in Ireland assesses opportunities and challenges associated with adopting accruals in Ireland for government accounting. Due to issues with the comprehensiveness and legibility of the current financial reports, the Review recommends that going forward, the Irish Government establish accrual financial statements compliant with international standards for its departments and offices and harmonise accounting standards used by entities within the general government sector. The report notes that accrual data would be a “building block” for richer, more reliable fiscal information, which would, in turn, help formulate improved assumptions for fiscal forecasts and be better equipped to identify fiscal risks. Beyond the adoption of accrual accounting, this report proposes that the Irish Government considers modernising its financial reporting framework by preparing integrated reports for departments and offices and consolidated financial statements. Integrated accounts for departments and offices would provide an overview of each department’s resources and spending alongside information on their strategy and performance. This would enhance and improve scrutiny and examination of departmental performance by the Committee of Public Accounts and by the Oireachtas Sectoral Committees. Keywords: Ireland, financial reporting, accruals, transparency, accountability Journal: OECD Journal on Budgeting Classification-JEL: H11; H30; H60 Year: 2019 Pages: 107-169 Volume: 19 Issue: 1 Handle: RePEc:oec:govkaa:ea5cae13 Template-type: ReDIF-Article 1.0 Author-Name: OECD Author-Name: Delphine Moretti Title: Budgeting in Greece Journal: OECD Journal on Budgeting Classification-JEL: H50; H61; H83 Year: 2019 Volume: 19 Issue: 2 Handle: RePEc:oec:govkaa:9cc493d2 Template-type: ReDIF-Article 1.0 Author-Name: Ana Maria Ruiz Rivadeneira Author-Name: Juan Garin Title: Public Private Partnerships Review of Kazakhstan Abstract: Kazakhstan has put in place a well-structured legal and institutional framework for preparing Public Private Partnerships (PPPs) at both the national and regional levels. The government has prioritised PPPs as a delivery mode for both economic and social infrastructure. The central emphasis on PPPs had a strong impact at the regional level with a large number of relatively small projects signed in the past years. At the national level the impact has been modest mostly due to financing challenges. In terms of priority areas for reform, the report outlines capacity building (particularly during the project preparation phase), the need to promote quality over quantity of PPPs, strengthening the methods used to guide the choice of delivery mode, and transparency and accounting of contingent liabilities Keywords: Kazakhstan, Public Private Partnerships, Kazakhstan PPP Centre, PPP policy and legislation Journal: OECD Journal on Budgeting Classification-JEL: H40; H50; H60 Year: 2019 Volume: 19 Issue: 2 Handle: RePEc:oec:govkaa:f7696c94 Template-type: ReDIF-Article 1.0 Author-Name: Joseph White Title: Can performance measurement make health care systems more sustainable? Or at least more efficient? Abstract: In light of the many discussions advocating the use of pay-for-performance and performance budgeting, this paper argues that discouraging experience with both approaches should temper expectations that performance measurement can be a reform that will make health care systems more "sustainable" or even more efficient. The link between sustainability and efficiency is tenuous, and attention to performance is not new. Measurement's accuracy tends to be overstated and its costs understated or ignored. Nor does it easily lead to changed behaviour. Yet some measurement is useful for managing any complex activity. In particular, there are situations in which measures are more accurate and the proper responses to shortfalls are generally agreed. Policymakers should look for those conditions and encourage the more limited, targeted improvement that measures then can make possible. Keywords: Performance, measurement, budgeting, sustainability Journal: OECD Journal on Budgeting Classification-JEL: H51; I11; I18 Year: 2019 Volume: 19 Issue: 3 Handle: RePEc:oec:govkaa:2b3d3059 Template-type: ReDIF-Article 1.0 Author-Name: Chris James Author-Name: Ivor Beazley Author-Name: Luciana Rosato Author-Name: Caroline Penn Title: Budgeting practices to improve health system performance: An OECD survey of countries from the Latin American and Caribbean region Abstract: This article presents the main findings of two OECD Surveys of Senior Budget and Health Officials conducted in the Latin American and Caribbean region. The surveys help to understand the approaches to budgeting, and take account of the prominent role of agents in the health system across the region, including social health insurance agencies and subnational governments. The focus, however, is on the application of performance-orientated reforms to budgeting, and the extent to which countries in the region have adopted such reforms to improve the efficiency of health expenditure to achieve universal health coverage. The findings point to the use of performance and results-based budgeting in the region, along with new models of provider payment systems integrating performance measures. Keywords: Budgeting, performance, health sector, Latin America and Caribbean Journal: OECD Journal on Budgeting Classification-JEL: H51; I13; I18 Year: 2019 Volume: 19 Issue: 3 Handle: RePEc:oec:govkaa:2fc826dd Template-type: ReDIF-Article 1.0 Author-Name: Anita Charlesworth Title: Measuring the productivity of the health care system: the experience of the United Kingdom by Anita Charlesworth Abstract: Measuring health care productivity is important as health is a large sector of the economy and with the majority of funding coming from public sources, the outlook for productivity growth is a critical factor in the debate about fiscal sustainability. The UK has over 20 years’ experience of measuring health care productivity. The UK measure of productivity is relatively comprehensive; measuring hospital, mental health and primary care services. It compares changes in the volume of quality-adjusted output with changes in the volume of quality-adjusted inputs. The productivity measure plays a role in budget setting, fiscal risk assessment and within the health system, hospital reimbursement. The UK experience has considerable strengths but also highlights some of the challenges of health care productivity measurement. Robust productivity measurement requires high quality, comprehensive data collected on a consistent basis over time. Even in a national health service this is challenging. The emerging evidence on allocative efficiency also highlights the importance of shifting the focus from the outputs of healthcare to outcomes. But, however productivity is measured, for fiscal sustainability the critical issue is how to realise potential productivity gains within the healthcare system and the mix of policy and managerial support needed to help the system optimise the trend rate of efficiency growth. Keywords: United Kingdom, productivity, measurement Journal: OECD Journal on Budgeting Classification-JEL: H51; I11; I18 Year: 2019 Volume: 19 Issue: 3 Handle: RePEc:oec:govkaa:75a91975 Template-type: ReDIF-Article 1.0 Author-Name: Axel Miguel Huus Author-Name: Thomas Neby Baardseng Title: Quality-based financing – the Norwegian experience Abstract: In this article we give a presentation of the Norwegian quality based financing (QBF) mechanism and our experiences with this financing mechanism. The article outlines the main features of the Norwegian health care system, and its financing mechanisms. We then focus in on the QBF with a description of the system and the main considerations on which the system is based. We give a short theoretical framework on how to design quality based financing systems, and show how the consequences can vary depending on the design of the system. The Norwegian system has been evaluated, and the main findings of this evaluation is discussed together with some tentative predictions about the future developments. Keywords: Norway, budgeting, performance, hospitals Journal: OECD Journal on Budgeting Classification-JEL: H51; I11; I18 Year: 2019 Volume: 19 Issue: 3 Handle: RePEc:oec:govkaa:b10a3108 Template-type: ReDIF-Article 1.0 Author-Name: Ana Maria Ruiz Author-Name: Kholood Farran Author-Name: Karolina Socha-Dietrich Author-Name: Ivor Beazley Author-Name: Chris James Author-Name: Caroline Penn Title: Health Financing and Budgeting Practices: Key findings from the Asia, Oceania, and Central, Eastern and South-eastern European regions Abstract: This article presents the findings of the OECD Survey of Senior Budget Officials on Budgeting Practices from a 2017 survey covering the Asia and Oceania, and Central, Eastern and South Eastern European regions. The survey is part of the ongoing engagement between health and budget officials in the OECD’s regional networks and provides an comparable set of data to analyse and benchmark good practices in health budgeting. The results of the survey point to an increasing use of budgeting tools from developed countries and support continued engagement to improve budget activities and to meet future challenges of health systems. Keywords: Budgeting practices, health sector, Asia, Europe Journal: OECD Journal on Budgeting Classification-JEL: H51; I13; I18 Year: 2019 Volume: 19 Issue: 3 Handle: RePEc:oec:govkaa:b4a4a92e Template-type: ReDIF-Article 1.0 Author-Name: Chris James Author-Name: Ivor Beazley Author-Name: Caroline Penn Author-Name: Leah Philips Author-Name: Sean Dougherty Title: Decentralisation in the health sector and responsibilities across levels of government: Impact on spending decisions and the budget Abstract: This article sheds light on the role of subnational governments in health systems across OECD countries. The views in this article show a move away from traditional measures of decentralisation, such as the share of subnational government expenditure of total expenditure, to measures capturing a range of responsibilities in the health sector. The data comes from the 2017 OECD Survey on Performance Measurement Systems in the Health Sector and Responsibilities across Levels of Government. The results show that despite health representing a large sector of subnational government expenditure, central governments still have considerable decision-making power. This power applies to key policy-making and budgeting decisions. Keywords: Decentralisation, subnational, health system Journal: OECD Journal on Budgeting Classification-JEL: H51; H75; I18 Year: 2019 Volume: 19 Issue: 3 Handle: RePEc:oec:govkaa:c2c2058c Template-type: ReDIF-Article 1.0 Author-Name: Ivor Beazley Author-Name: Sean Dougherty Author-Name: Caroline Penn Author-Name: Leah Philips Author-Name: Chris James Title: Performance measurement systems in the health sector and their budgetary implications Abstract: This article looks at the application of performance measurement systems in the health sector across OECD countries. The data comes from the 2017 OECD Survey on Performance Measurement Systems in the Health Sector and Responsibilities across Levels of Government. The results show that the majority of countries have national performance measurement systems in place, covering multiple aspects of the health system. Despite varying objectives, measurement systems are usually aimed at improving performance of the health system, rather than at containing costs. Keywords: Performance, measurement, health system Journal: OECD Journal on Budgeting Classification-JEL: H51; I11; I18 Year: 2019 Volume: 19 Issue: 3 Handle: RePEc:oec:govkaa:d94fd384 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Budgeting in Argentina Abstract: This review discusses budgeting in Argentina in relation to the OECD Recommendation of the Council on Budgetary Governance. The findings of this review conclude that the main elements of Argentina’s framework align well to the OECD Recommendation of the Council on Budgetary Governance and the practices of several OECD countries. Recent fiscal results show that Argentina’s budgetary framework, is capable of supporting fiscal control but it can also be equally be applied to other fiscal settings. The OECD’s findings support the continued implementation of existing reforms, including the focus on statistical data quality, the comprehensive classification of financial transactions and the use of performance budgeting information. Other initiatives that would support high quality budgetary advice to the governmentof the day include a long-term fiscal sustainability report to identify the longterm fiscal impacts of policy decisions, and to critically assess the effectiveness of public expenditure during the budget process. This review was conducted in parallel with an OECD Review of InfrastructureGovernance. Journal: OECD Journal on Budgeting Year: 2020 Volume: 20 Issue: 1 Handle: RePEc:oec:govkaa:a7207bd1 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Infrastructure Governance Review of Argentina Abstract: This review discusses infrastructure governance in Argentina in relation tothe OECD Framework for the Governance of Infrastructure. This reporthighlights recent improvements in the institutional framework, as well as themain reforms aiming to improve transparency and oversight ofinfrastructure investment, strengthening the role of the Chief of Cabinet ofMinisters in defining infrastructure investment objectives, and ensuringbetter articulation between the budget formulation process and the NationalPublic Investment System. However, it also underlines the weak planningcapacities at the national and subnational level and the need to develop along-term strategic vision based on assessed infrastructure needs, shiftingfrom a sector-oriented approach to a place-based approach forinfrastructure investment. This report also stresses that Argentina can havea more robust project prioritisation process, and the need to strengthen themulti-annual investment system to ensure value for money throughout thelifecycle of the project. This review was conducted in parallel with an OECDBudget Review of Argentina. Journal: OECD Journal on Budgeting Year: 2020 Volume: 20 Issue: 1 Handle: RePEc:oec:govkaa:f2574b7b Template-type: ReDIF-Article 1.0 Author-Name: Juliane Jansen Author-Name: Ana Maria Ruiz Rivadeneira Author-Name: Peter Mandzak Author-Name: Jón R. Blöndal Author-Name: Andrew Blazey Author-Name: Delphine Moretti Title: Managing and Prioritising Public Finances and Budget in Support of Strategic Development in the Slovak Republic: A Targeted Budget Review Abstract: This review looks at how the budgeting and public financial management system, as managed and co-ordinated by the Ministry of Finance, effectively supports Principles 2 and 3 of the OECD Recommendation on Budgetary Governance (2015). This report is divided into four sections providing recommendations at the end of each based on the OECD Principles of Budgetary Governance. Keywords: Slovak Republic, budgetary governance, public financial management Journal: OECD Journal on Budgeting Classification-JEL: H60; H61 Year: 2020 Volume: 20 Issue: 2 Handle: RePEc:oec:govkaa:02e650cd Template-type: ReDIF-Article 1.0 Author-Name: Katharina Herold Title: Insolvency Frameworks for State and Local Governments Abstract: Insolvency frameworks stipulate rules and procedures to resolve debt in a prompt and orderly way. Such frameworks may serve to facilitate debt restructuring and the fiscal recovery even of subnational entities, including states and municipalities. They may even prevent subnational governments from sliding into insolvency. This paper identifies the benefits of setting up an insolvency framework for subnational governments, complementing existing budget rules and procedures. It analyses different design options of subnational insolvency frameworks by drawing on existing regimes for municipalities in Colombia, Hungary, South Africa, Switzerland and the United States as well as proposals for sovereign bankruptcy procedures in the literature. The paper also explores the main challenges for implementing subnational insolvency regimes and presents possible solutions. Keywords: Subnational insolvency, municipal bankruptcy, debt resolution frameworks Journal: OECD Journal on Budgeting Classification-JEL: H70; K30 Year: 2020 Volume: 20 Issue: 2 Handle: RePEc:oec:govkaa:4fe1859f Template-type: ReDIF-Article 1.0 Author-Name: Megan Carroll Author-Name: David Torregrosa Author-Name: Sebastien Gay Author-Name: Wendy Kiska Author-Name: Robert Sunshine Title: Budgeting for federal insurance and retirement programmes: Cash or Accrual Abstract: Federal retirement programmes and some federal insurance programmes have long-term effects on the budget. But the federal budget process typically uses cash-based accounting measures that cover a 10-year period, which may be too short to accurately report those programmes’ net budgetary effects over the long term. In contrast, using accrual accounting for such programmes would accelerate the recognition of long-term costs and would display the expected costs of new commitments when they were incurred and thus were most controllable. However, such estimates are less transparent and verifiable than cash-based estimates, involve more uncertainty, and can complicate budget reporting. Keywords: accrual budgeting, federal budgeting, federal insurance, federal retirement Journal: OECD Journal on Budgeting Classification-JEL: H50; H60 Year: 2020 Volume: 20 Issue: 2 Handle: RePEc:oec:govkaa:60e41bf0 Template-type: ReDIF-Article 1.0 Author-Name: Ronnie Downes Author-Name: Scherie Nicol Title: Designing and implementing gender budgeting – a path to action Abstract: Gender inequality is an important and visible issue for OECD countries and the costs are borne at both social and economic levels. In line with the 2015 OECD Recommendation on Gender Equality in Public Life, gender budgeting ensures that gender equality considerations are taken systematically into account in tax and spending decisions. Effective implementation of gender budgeting has the potential to improve gender equality, ensure a sense of fairness and contribute to inclusive economic growth. This paper draws on the experiences of OECD countries and aims to provide insights into how the budget process can develop as a tool to support gender equality goals; the different ways in which gender budgeting can be implemented; and the factors that help provide an enabling environment for gender budgeting. Arising from this analysis, this paper proposes initial guidelines for designing and implementing gender budgeting to assist countries in putting in place an effective and sustainable approach. It also presents a first pass at a composite index for gender budgeting which assesses the extent to which OECD countries gender budgeting efforts are characterised by a strong strategic framework, effective tools of implementation and an enabling environment. Keywords: Gender, budgeting, equality, framework Journal: OECD Journal on Budgeting Classification-JEL: H50; H59 Year: 2020 Volume: 20 Issue: 2 Handle: RePEc:oec:govkaa:689198fa Template-type: ReDIF-Article 1.0 Author-Name: Tim Irwin Author-Name: Delphine Moretti Title: Can subnational accounting give an early warning of fiscal risks? Abstract: The early detection of state and local fiscal problems can help in resolving them quickly before they turn into crises. Early detection should be easier if subnational governments prepare high-quality accounts. A survey and case studies were therefore undertaken to investigate the nature of subnational accounting in OECD and key partner countries, as well as the use of subnational accounts by national governments that monitor subnational finances. The results show that in many countries subnational accounting has characteristics that should help in the early detection of fiscal problems, including the use of accrual accounts prepared according to largely harmonised standards. Many national governments use a wide range of indicators from the accounts to monitor the financial health of subnational governments. However, there is room for progress including in the monitoring of non-financial assets and reporting of currently off-balance sheet liabilities. Keywords: Subnational accounting, fiscal risks, balance sheets, monitoring Journal: OECD Journal on Budgeting Classification-JEL: H60; H70 Year: 2020 Volume: 20 Issue: 2 Handle: RePEc:oec:govkaa:be73a937 Template-type: ReDIF-Article 1.0 Author-Name: Scherie Nicol Author-Name: Pinar Guven Author-Name: Aline Pennisi Title: Thailand: Gender Budgeting Action Plan Abstract: Thailand set out a commitment to introduce gender budgeting in its 2017 Constitution. This Gender Budgeting Action Plan, prepared at the request of the Thai government, assesses the extent to which the necessary foundations are in place to develop and implement an effective approach to gender budgeting. It also proposes a path forward for Thailand to roll out an incremental approach to gender budgeting, grounded upon international standards set by the OECD. This work is carried out in the context of the OECD’s Thailand Country Programme. Keywords: gender budgeting, gender-responsive budgeting, gender, budgeting, budget reforms, public financial management Journal: OECD Journal on Budgeting Classification-JEL: H50; H61 Year: 2021 Volume: 20 Issue: 3 Handle: RePEc:oec:govkaa:6c398fc7 Template-type: ReDIF-Article 1.0 Author-Name: Andrew Blazey Author-Name: Anne Keller Author-Name: Scherie Nicol Author-Name: Donna Degan Title: Budgeting in Thailand Abstract: This review provides an overview of the budgetary landscape in Thailand and identifies the legal and constitutional aspects that impact on the planning, preparation and reporting of the budget. It then discusses strategic planning elements of the budget, specifically fiscal objectives, medium-term planning, capital investment, the management of fiscal risk in budgets and performance budgeting. It focuses on the development and preparation of the budget, the oversight of the execution of the budget, and the accounting and reporting functions supporting the budget. The final section considers the oversight and accountability of the budget from the perspective that is external to the preparation and decision making of the government. It looks at the role of parliament and independent institutions as well as the transparency, openness and accessibility of the budget. The analysis undertaken in this review is based on the OECD Recommendation of the Council on Budgetary Governance. Keywords: budgetary governance, fiscal transparency, gender budgeting, medium-term planning, performance budgeting, public financial management, budget review Journal: OECD Journal on Budgeting Classification-JEL: H50; H60 Year: 2021 Volume: 20 Issue: 3 Handle: RePEc:oec:govkaa:819aebb7 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Adaptive Health Financing: Budgetary and Health System Responses to Combat COVID-19 Abstract: Health financing policies are an essential element of health system responses to COVID-19. Sound policies help ensure there are sufficient resources to combat COVID-19, that the resources are disbursed rapidly, and that resources are spent in an effective manner. The effective implementation of such policies depends on budget and health officials working together closely to bring about co-ordinated actions. This policy brief analyses how OECD member countries have adapted health financing policies to combat COVID-19, and how such policies may need to continue to adapt as the pandemic evolves. It reviews how countries have provided additional budgetary resources to the health sector to combat COVID-19. It also maps out the key areas of joint action by budget and health officials to plan, implement and review the necessary health financing measures needed to combat COVID-19. Journal: OECD Journal on Budgeting Year: 2021 Volume: 21 Issue: 1 Handle: RePEc:oec:govkaa:69b897fb Template-type: ReDIF-Article 1.0 Author-Name: Jean-Paul Milot Title: The limits of accrual accounting applied to public accounts: A French view Abstract: The French system of public accounts continues to function at its current state with little doubt. The gap between information provided on the one hand, and users’ vague expectations on the other however, is insistent and continues to widen. At its current state, the public accounts system is not only costly but is also starting to prove inadequate in addressing the challenges of the future. This article aims to determine the extent to which this system could be enhanced – and at what cost – or whether the development of a new system built on different principles should be considered. Keywords: accrual accounting, public accounts, financial accounting, public finances, notes to financial statements, consolidation, contingent liability Journal: OECD Journal on Budgeting Classification-JEL: H50; H61 Year: 2021 Volume: 21 Issue: 1 Handle: RePEc:oec:govkaa:768cc082 Template-type: ReDIF-Article 1.0 Author-Name: Delphine Moretti Author-Workplace-Name: OECD Author-Name: Damien Boucher Author-Name: Flavia Giannini Title: Managing fiscal risks: Lessons from case studies of selected OECD countries Abstract: Based on five case studies, this paper looks at the definition and classification of fiscal risks; sets out the components of a comprehensive fiscal risks framework; and examines how to operationalise such a framework. It then summarises challenges and key lessons to be considered by countries that wish to implement OECD recommendations in this area to increase the resilience of their public finances in the wake of the COVID-19 outbreak. Keywords: fiscal risks, stress, shocks, public finance, contingent liabilities, COVID-19, macroeconomic risks Journal: OECD Journal on Budgeting Classification-JEL: H50; H61 Year: 2021 Volume: 21 Issue: 1 Handle: RePEc:oec:govkaa:7db1d712 Template-type: ReDIF-Article 1.0 Author-Name: Scherie Nicol Author-Workplace-Name: OECD Author-Name: Pinar Guven Author-Workplace-Name: OECD Title: OECD scan of equality budgeting in Ireland: Equality mainstreaming and inclusive policy making in action Abstract: This article takes stock of actions that the government of Ireland has taken to mainstream equality considerations into the budget process. It provides options and recommendations on future directions for equality budgeting in Ireland, in light of national developments and international experience. These take into account the standards set out in the 2015 OECD Recommendation of the Council on Gender Equality in Public Life and the 2015 OECD Recommendation of the Council on Budgetary Governance. The scan also provides guidance to strengthen Ireland’s institutional approach to equality proofing more holistically. Keywords: equality, budgeting, gender budgeting, gender-responsive budgeting, public financial management, budget reforms, performance budgeting Journal: OECD Journal on Budgeting Classification-JEL: H50; H61 Year: 2021 Volume: 21 Issue: 1 Handle: RePEc:oec:govkaa:80b7b9a5 Template-type: ReDIF-Article 1.0 Author-Name: Ivor Beazley Author-Workplace-Name: OECD Author-Name: Ana Maria Ruiz Rivadeneira Author-Workplace-Name: OECD Title: Chile: Review of DIPRES’ programme evaluation system Abstract: This review analyses the institutional arrangements, evaluation instruments and processes involved in the evaluation of spending programmes and institutions in Chile. In particular, it examines the extent to which the Chilean Budget Office’s ex post evaluations are used to inform budget decision making, as well as the wider relevance and use of evidence generated by these evaluations. Keywords: evaluation, Chile, DIPRES, budget, public spending, performance Journal: OECD Journal on Budgeting Classification-JEL: H50; H61 Year: 2021 Volume: 21 Issue: 1 Handle: RePEc:oec:govkaa:a0f4eba0 Template-type: ReDIF-Article 1.0 Author-Name: Thomas Elston Author-Workplace-Name: Oxford University Title: Implementing shared services in the UK central government: A five-year progress report using longitudinal bureaumetrics Abstract: This article uses bureaumetric methods and five years of data on the UK civil service to test several key claims about shared service implementation on a larger scale. It begins by examining organisational dualisms and the promises and challenges of shared services. It then describes the United Kingdom’s case, and develops the bureaumetric method for assessing reform progress. Finally, it presents the findings from the study and discusses implications for research and practice. Keywords: bureaumetrics, civil service reform, collaboration Journal: OECD Journal on Budgeting Classification-JEL: H50; H61 Year: 2021 Volume: 21 Issue: 2 Handle: RePEc:oec:govkaa:3481664a Template-type: ReDIF-Article 1.0 Author-Name: Jungmin Park Author-Workplace-Name: OECD Author-Name: Delphine Moretti Author-Workplace-Name: OECD Author-Name: Brian Finn Author-Workplace-Name: OECD Author-Name: Arjan Vos Author-Workplace-Name: Ministry of Finance, Netherlands Author-Name: Mostafa Askari Author-Workplace-Name: University of Ottawa Title: Budgeting in Bulgaria Abstract: This review discusses the significant progress made since the last OECD budget review of Bulgaria in 2009. It begins with a discussion of the institutional and legislative framework for budgeting before addressing fiscal policy and medium-term planning. It then turns to the state budget formulation and execution before discussing transparency and openness in budgeting. It concludes with a discussion of parliament’s role in the budget process and external oversight. Recommendations are made for each of these topics. Keywords: budgeting, performance budgeting, transparency, budgetary governance Journal: OECD Journal on Budgeting Classification-JEL: H50; H61 Year: 2021 Volume: 21 Issue: 2 Handle: RePEc:oec:govkaa:3a4cc3aa Template-type: ReDIF-Article 1.0 Author-Name: Delphine Moretti Author-Workplace-Name: OECD Author-Name: Thomas Braendle Author-Workplace-Name: OECD Author-Name: Alexandre Leroy Author-Workplace-Name: OECD Title: Balance sheet-based policies in COVID‑19 fiscal packages: How to improve transparency and risk analysis? Abstract: This article discusses why the composition of emergency fiscal packages in response to the COVID-19 pandemic make it important for governments to monitor and manage their balance sheets going forward. It analyses current practices with transparency and risk analysis concerning balance sheet-based measures drawn from case studies of nine OECD countries. It then identifies further steps governments should consider to increase transparency and strengthen risk analysis on COVID-19 related balance sheet-based policies that will help to strengthen fiscal frameworks. Keywords: fiscal risks, shocks, public finance, contingent liabilities, balance sheet, COVID-19 Journal: OECD Journal on Budgeting Classification-JEL: H50; H61 Year: 2021 Volume: 21 Issue: 2 Handle: RePEc:oec:govkaa:6b946136 Template-type: ReDIF-Article 1.0 Author-Name: Lisa von Trapp Author-Workplace-Name: OECD Author-Name: Peter Fontaine Author-Workplace-Name: George Washington University Author-Name: Michal Horvath Author-Workplace-Name: National Bank of Slovakia Author-Name: Gemma Telow Author-Workplace-Name: Institute for Government, United Kingdom Title: OECD Review of the Office for Budget Responsibility in the United Kingdom Abstract: This review examines the successes and challenges for the United Kingdom’s Office for Budget Responsibility. It discusses its institutional context, its resources, its publications and underlying methodologies, and its impact on the public debate. Keywords: surveillance of public finances, independent fiscal institutions, fiscal council Journal: OECD Journal on Budgeting Classification-JEL: F42; H61; H68; H83 Year: 2021 Volume: 21 Issue: 2 Handle: RePEc:oec:govkaa:af8afbef Template-type: ReDIF-Article 1.0 Author-Name: Helio Tollini Author-Workplace-Name: Chamber of Deputies, Brazil Title: Brazil: Moving the budget focus from the short to the medium term Abstract: This article presents a brief overview of the fiscal rules framework in Brazil. It introduces the concept and stages of implementing a medium-term expenditure framework (MTEF) and suggests ways to refine Brazil’s incipient medium-term fiscal framework. It then proposes to bring the Brazilian budget process more in line with the best international fiscal planning practices, with the adoption of an MTEF, in order to incorporate the medium-term perspective into the allocation of public resources. By way of conclusion, it describes the benefits of having an MTEF directing public sector accounts. Keywords: budget, medium-term expenditure framework, fiscal rules, public sector Journal: OECD Journal on Budgeting Classification-JEL: H61; H68; E61 Year: 2021 Volume: 21 Issue: 2 Handle: RePEc:oec:govkaa:e2a61aaa Template-type: ReDIF-Article 1.0 Author-Name: Scott Cameron Author-Workplace-Name: OECD Author-Name: Peter Fontaine Author-Workplace-Name: Congressional Budget Office (USA) Author-Name: Helmut Berger Author-Workplace-Name: Austrian Parliamentary Budget Office Author-Name: Eddie Casey Author-Workplace-Name: Irish Fiscal Advisory Council Author-Name: Niku Määttänen Author-Workplace-Name: University of Helsinki Title: OECD Review of Finland’s Independent Fiscal Institution Abstract: This review was originally published on 23 June 2021 and reflects the situation at that time. This version has been reformatted and lightly edited from the original to be in line with the OECD Journal on Budgeting guidelines. Keywords: independent fiscal institutions, fiscal council, fiscal discipline, National Audit Office, oversight of fiscal policy, surveillance of public finances Journal: OECD Journal on Budgeting Classification-JEL: E62; H60; H61; H68 Year: 2021 Volume: 21 Issue: 3 Handle: RePEc:oec:govkaa:3e927a24 Template-type: ReDIF-Article 1.0 Author-Name: Scott Cameron Author-Workplace-Name: OECD Author-Name: Peter Fontaine Author-Workplace-Name: Congressional Budget Office (USA) Author-Name: Geert Langenus Author-Workplace-Name: National Bank of Belgium Author-Name: Claire Murdoch Author-Workplace-Name: Scottish Fiscal Commission Author-Name: Viktor Novysedlak Author-Workplace-Name: Council for Budget Responsibility Author-Name: Irēna Emīlia Švilpe Author-Workplace-Name: Bank of Latvia Title: OECD Review of Latvia’s Fiscal Discipline Council Keywords: surveillance of public, finances,, independent fiscal institutions, fiscal council, fiscal discipline, Discipline Council, oversight of fiscal policy Journal: OECD Journal on Budgeting Classification-JEL: E62; H60; H61; H68 Year: 2021 Volume: 21 Issue: 3 Handle: RePEc:oec:govkaa:72e1c9b6 Template-type: ReDIF-Article 1.0 Author-Name: Barry Anderson Author-Name: Kim H. Burke Author-Workplace-Name: The Craddock Group Title: Budgeting for loans and guarantees: The United States Federal Credit Reform Act Abstract: Barry B. Anderson Keywords: budgeting, budget reform, machinery of government Journal: OECD Journal on Budgeting Classification-JEL: E62; H60; H61; H63 Year: 2021 Volume: 21 Issue: 3 Handle: RePEc:oec:govkaa:84ea2b08 Template-type: ReDIF-Article 1.0 Author-Name: Dirk-Jan Kraan Title: The finance function of line ministries in the Netherlands Abstract: Keywords: budgeting, budget reform, machinery of government Journal: OECD Journal on Budgeting Classification-JEL: E62; H11; H60; H61 Year: 2021 Volume: 21 Issue: 3 Handle: RePEc:oec:govkaa:b82fd512 Template-type: ReDIF-Article 1.0 Author-Name: Scherie Nicol Author-Workplace-Name: OECD Author-Name: Scott Cameron Author-Workplace-Name: OECD Author-Name: Christina Håkanson Author-Workplace-Name: Swedish Fiscal Policy Council Author-Name: Stephen Kinsella Author-Workplace-Name: Kemmy Business School Author-Name: John Smidt Author-Workplace-Name: Danish Economic Council Title: OECD Review of the Irish Fiscal Advisory Council Abstract: Scherie Nichol, Policy Analyst, OECD Keywords: surveillance of public finances, independent fiscal institutions, fiscal council, Irish Fiscal Advisory Council,, oversight of fiscal policy Journal: OECD Journal on Budgeting Classification-JEL: E62; H60; H61; H68 Year: 2021 Volume: 21 Issue: 3 Handle: RePEc:oec:govkaa:bad25e52 Template-type: ReDIF-Article 1.0 Author-Name: Álfrún Tryggvadottir Title: OECD Best Practices for Spending Reviews Abstract: Spending reviews are widely used in OECD countries. They have become a core instrument for expenditure prioritisation and reallocation and a permanent feature of the budget process in many countries. Spending reviews provide governments with means to support the sustainability of public finances through systematic analysis of existing expenditure. This is particularly important as baseline expenditure has grown unsustainably in certain spending areas across OECD countries. This paper looks at how spending reviews are applied in OECD countries and presents best practices for using spending reviews. Every country is different and uses different approaches. However, there are common features to successful spending reviews where valuable lessons can be drawn from experiences across OECD countries which are reflected in the best practices. Keywords: Spending reviews, best practices, fiscal sustainability, prioritisation, reallocation Journal: OECD Journal on Budgeting Classification-JEL: H11; H50; H61 Year: 2022 Volume: 22 Issue: 1 Handle: RePEc:oec:govkaa:90f9002c Template-type: ReDIF-Article 1.0 Author-Name: Richard Allen Title: How budgeting systems can prepare better for national emergencies: Six lessons from the COVID-19 crisis Abstract: This article discusses how budgeting systems can be better prepared for national (and global) emergencies such as COVID‑19, with special reference to the health sector. What spending modalities and flexibilities were introduced during the pandemic to provide emergency funding for health services? What are the emerging lessons? Which of these mechanisms should be sustained or refined in the future to enhance preparedness and responsiveness in health spending or other areas of budgeting? Journal: OECD Journal on Budgeting Classification-JEL: H62; H12; H53; H60; H61; I19 Year: 2022 Volume: 22 Issue: 1 Handle: RePEc:oec:govkaa:bdfca328 Template-type: ReDIF-Article 1.0 Author-Name: Benedikt Gamillscheg Author-Workplace-Name: Ministry of Finance, Austria Title: Gender and Capital Budgeting Abstract: This paper looks at how the impact of capital investment on gender equality can be taken into account during the budget process. Capital investment is a policy area that is often overlooked as gender-relevant. However, capital investment has a powerful impact on the way in which society operates. Ensuring that the design of capital projects considers gender impacts plays an important role in advancing gender equality. Keywords: public financial management, gender budgeting, gender equality, capital, infrastructure Journal: OECD Journal on Budgeting Classification-JEL: H50; H54; H59; H61; H72; I31; J16; O18 Year: 2022 Volume: 22 Issue: 1 Handle: RePEc:oec:govkaa:d1ee8b85 Template-type: ReDIF-Article 1.0 Author-Name: Scott Cameron Author-Workplace-Name: OECD Title: How can independent fiscal institutions make the most of assessing past economic forecasts? Abstract: Forecasts of economic variables like GDP, inflation and unemployment are the starting points for budget planning. Most OECD countries have designated an independent fiscal institutions to scrutinise or endorse the economic forecasts prepared by finance ministries. Although external assessments of past forecast errors can help uncover systematic bias or underperformance in official forecasts, there are several conceptual and practical problems with doing so that limit their usefulness. This paper describes the limitations of ex post forecast assessments and offers some suggestions on how independent fiscal institutions can add the most value in providing them. Keywords: surveillance of public finances, independent fiscal institutions, fiscal council, fiscal discipline, oversight of fiscal policy, macroeconomic forecasting, budget forecasting, fiscal forecasting Journal: OECD Journal on Budgeting Classification-JEL: E37; H60; H61; H68 Year: 2022 Volume: 22 Issue: 2 Handle: RePEc:oec:govkaa:5aa7765a Template-type: ReDIF-Article 1.0 Author-Name: Axel Mathot Author-Workplace-Name: OECD Author-Name: Flavia Giannini Author-Workplace-Name: OECD Title: Evaluation Framework and Practices: A comparative analysis of five OECD countries Abstract: This article provides a detailed analysis of policy evaluation frameworks in five OECD countries (Canada, Germany, the Netherlands, the United Kingdom and the United States), with a focus on the institutionalisation, the quality and the use of evaluation across government. It discusses how the evaluation function is regulated and organised in these countries. In addition, the article provides insights on the relevant conditions to set up and develop a sound evaluation system, through capacity building activities, quality assurance and control mechanisms, data availability and the use of evaluations. Keywords: evaluation, transparency, public finance Journal: OECD Journal on Budgeting Classification-JEL: H11; H50; H83 Year: 2022 Volume: 22 Issue: 2 Handle: RePEc:oec:govkaa:911cc792 Template-type: ReDIF-Article 1.0 Author-Name: Camila Vammalle Author-Workplace-Name: OECD Author-Name: Laura Córdoba Reyes Author-Workplace-Name: OECD Title: Health budgeting and governance responses to COVID-19 in Latin America and the Caribbean: Lessons for improving health systems’ resilience Abstract: This paper analyses the budgetary and health governance responses to the COVID-19 pandemic in Latin American and Caribbean (LAC) countries during 2020 and 2021 to identify good practices which could support countries improve the resilience of their health financing systems for future crises. Keywords: COVID-19, Health financing and governance, Latin America and Caribbean Journal: OECD Journal on Budgeting Classification-JEL: E60; H51; N36 Year: 2022 Volume: 22 Issue: 2 Handle: RePEc:oec:govkaa:d62fa6ef Template-type: ReDIF-Article 1.0 Author-Name: Andrew Blazey Author-Workplace-Name: OECD Author-Name: Margaux Lelong Title: Green budgeting: A way forward Abstract: Green budgeting refers to the integration of climate and environmental perspectives into a government’s budgetary processes. Based on the resources of the OECD’s Paris Collaborative on Green Budgeting and experiences in OECD countries from implementing green budgeting, this paper identifies seven key areas to support the development of green budgeting practices in making progress toward climate and environmental goals. The key areas consider the institutional frameworks, budgetary tools, transparency and accountability arrangements and the enabling environment for budgeting in the public sector. Keywords: Green Budgeting, Climate Change, Budget Framework Journal: OECD Journal on Budgeting Classification-JEL: H50; H61 Year: 2022 Volume: 22 Issue: 2 Handle: RePEc:oec:govkaa:dc7ac5a7 Template-type: ReDIF-Article 1.0 Author-Name: Tal Shapsa Heiman Author-Name: Danielle Israel Title: Using behavioural insights to inform budget policy making: Eight Israeli case studies Abstract: This article summarises the Israeli experience with utilising behavioural insights in the work of budget officials and aims to assist budget officials in other OECD countries with integrating behavioural economics tools and evidence-based policy-making methods in their work. Behavioural economics has grown in recent years to become increasingly integrated in the work of public institutions, particularly those in the forefront of policy making. In the context of public budgeting, behavioural insights tools had initially focused on improving tax compliance. In this article we widen the scope of budget officials’ perspective, and responsibility, to develop behaviourally informed policies that are primarily citizen-focused. This approach harmonises and aligns the work of ministries of finance with public policy objectives more generally, and provides actionable “know how” based on the experience of the budget department in the Israeli Ministry of Finance. Keywords: Behavioural economics, public budgeting, behaviourally informed policy Journal: OECD Journal on Budgeting Classification-JEL: H3; H30; H6; H60; H61 Year: 2022 Volume: 22 Issue: 2 Handle: RePEc:oec:govkaa:ff21d87f Template-type: ReDIF-Article 1.0 Author-Name: Axel Mathot Author-Workplace-Name: OECD Author-Name: Andrew Park Author-Workplace-Name: OECD Title: Budgeting in Romania 2022 Abstract: This journal article discusses budgeting in Romania in relation to the OECD Recommendation on Budgetary Governance. Over the past 20 years, Romania has undergone significant changes to its budgeting system and introduced measures to help improve budget and fiscal transparency and fiscal management and reporting. This article presents observations of Romania’s budget process and identifies opportunities for improving the country’s system for budgetary governance. Keywords: budgetary governance, budgeting, transparency, performance budgeting Journal: OECD Journal on Budgeting Classification-JEL: H50; H6 Year: 2022 Volume: 22 Issue: 3 Handle: RePEc:oec:govkaa:24877232 Template-type: ReDIF-Article 1.0 Author-Name: Scherie Nicol Title: Gender perspectives in spending review Abstract: Public finances will be under increasing pressure in the medium term. Tools such as spending review, which help governments prioritise and reallocate spending, are likely to be increasingly important. Integrating a gender perspective will ensure that budget reprioritisation does not increase gender gaps, but instead supports the achievement of gender goals – which can bring economic and fiscal dividends. This paper highlights the different ways in which countries are experimenting with integrating a gender perspective to spending review, as well as some of the key considerations that should be taken into account in the process. Keywords: public finance, spending review, gender budgeting Journal: OECD Journal on Budgeting Classification-JEL: H61; J16; E66 Year: 2022 Volume: 22 Issue: 3 Handle: RePEc:oec:govkaa:4b676369 Template-type: ReDIF-Article 1.0 Author-Name: Scott Cameron Author-Workplace-Name: OECD Author-Name: Margaux Lelong Author-Workplace-Name: OECD Author-Name: Lisa von Trapp Author-Workplace-Name: OECD Title: More than words: Potential roles for independent fiscal institutions (IFIs) in green budgeting Abstract: Budgetary frameworks and instruments are increasingly being used to support and accelerate progress towards climate and environmental goals. This paper provides an overview of how OECD countries are implementing green budgeting and potential roles for independent fiscal institutions (IFIs) in monitoring these initiatives or in providing climate-related analysis as part of their existing mandates. It concludes with some key questions for the path ahead. Keywords: budget forecasting, carbon budgets, ESG (environmental, social, and corporate governance),, green budgeting, independent fiscal institutions, fiscal policy surveillance, Paris Agreement Journal: OECD Journal on Budgeting Classification-JEL: H60; H61; H68; Q51; Q56; Q58 Year: 2022 Volume: 22 Issue: 3 Handle: RePEc:oec:govkaa:6fcb2fb4 Template-type: ReDIF-Article 1.0 Author-Name: Scherie Nicol Title: Gender budgeting: The economic and fiscal rationale Abstract: Gender gaps persist in the labour market, with women less likely than men to be in employment in all OECD countries. This paper highlights the economic and fiscal dividends that could be achieved from closing the gender employment gap. It shows that increasing women’s participation in the labour market can bring positive GDP and productivity gains, as well as improvements to fiscal sustainability. Increased participation of women in the workforce is particularly helpful in the context of the shrinking labour forces that many OECD countries are expected to face over the coming decades. The paper illustrates how gender budgeting can be used by governments to mobilise policy making to close gender gaps in the labour market and help realise these economic and fiscal gains. Keywords: gender budgeting, ageing, labour market Journal: OECD Journal on Budgeting Classification-JEL: H61; J11; J16 Year: 2022 Volume: 22 Issue: 3 Handle: RePEc:oec:govkaa:9ca9b221 Template-type: ReDIF-Article 1.0 Author-Name: Marc Robinson Author-Workplace-Name: PFM Results Consulting Title: Public finances after the COVID-19 pandemic Abstract: OECD nations face particularly powerful fiscal pressures over the coming decades. To handle these pressures without lapsing into fiscally irresponsibility, they will need to make courageous decisions on both the expenditure and tax sides. This paper looks at the implications of this for budgeting. It focuses particularly on reallocation and expenditure discipline, including the role of spending review, and the design and implementation of expenditure ceilings. The question of the relevance of net worth as a fiscal policy measure is also discussed, as is the potential for efficiency savings to relieve the fiscal pressure on governments. Keywords: reallocation, expenditure ceilings, net worth Journal: OECD Journal on Budgeting Classification-JEL: E62; H12; H50; H55; H61 Year: 2022 Volume: 22 Issue: 3 Handle: RePEc:oec:govkaa:f26b2a3b Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: OECD Best Practices for Parliaments in Budgeting Abstract: Legislatures’ “power of the purse”, the ability to tax and spend public money, is enshrined in constitutions worldwide as a cornerstone of legislative power in democratic countries. Their role across the budget cycle is a fundamentally important national concern, lying at the heart of issues such as transparency, inclusiveness and democratic accountability. Despite different historical, constitutional, and political contexts, common features for parliaments to play an effective role in budgeting have emerged from experiences across OECD countries. Keywords: legislature, parliament, budget, budget process, fiscal policy, independent fiscal institutions, committees Journal: OECD Journal on Budgeting Classification-JEL: H50; H60; H61 Year: 2023 Volume: 23 Issue: 1 Handle: RePEc:oec:govkaa:33109e15 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: Costing policy proposals: Guidelines for independent fiscal institutions (IFIs) Abstract: This paper provides good-practice guidelines for parliamentary budget officials and independent fiscal institutions (IFIs) that estimate the costs of policy proposals. It covers topics including which costs to capture, how to handle behavioural responses and macroeconomic feedback, how to communicate results, and how to work with stakeholders. It also contains a section on the special considerations for costing election platforms. Keywords: policy costing, independent fiscal institutions, budget forecasting Journal: OECD Journal on Budgeting Classification-JEL: H68; H61; H60 Year: 2023 Volume: 23 Issue: 1 Handle: RePEc:oec:govkaa:4e5cd3db Template-type: ReDIF-Article 1.0 Author-Name: Jose Blanch Author-Workplace-Name: Finance and Public Administration Ministry, Spain Author-Name: Elisabet Borras Author-Workplace-Name: Finance and Public Administration Ministry, Spain Author-Name: Alejandra Sanchez Author-Workplace-Name: Finance and Public Administration Ministry, Spain Title: Transformational budgeting: A holistic approach for delivering results Abstract: A new trend is appearing in government budgets: using the budget process to help transform society and achieve results in relation to cross-cutting government goals, referred to in this paper as “transformational agendas”, often seeking to overcome persistent economic, social or environmental issues, which require action from across different policy areas. Transformational budgeting is a holistic approach to budgeting that helps align disparate activities with central goals, or agendas. The paper reviews how budget processes have evolved in modern public finance, with a view to enhancing the efficient and effective use of inputs to deliver results. It presents the emergence of transformational budgeting as a tool to help transform societies in response to new global agendas, such as the SDGs. The paper showcases transformational budgeting in practice, drawing on experiences from Spain. Keywords: government, budgeting, goals, transformation Journal: OECD Journal on Budgeting Classification-JEL: H61; H11; D73 Year: 2023 Volume: 23 Issue: 1 Handle: RePEc:oec:govkaa:6a6b4179 Template-type: ReDIF-Article 1.0 Author-Name: OECD Title: OECD Best Practices for Gender Budgeting Abstract: This paper presents best practices for gender budgeting in OECD countries, consisting of the core features common to successful implementation of gender budgeting. These best practices identify elements that contribute to the sustainability of gender budgeting and help governments ensure that the budget helps achieve broader government objectives relating to gender equality, such as women’s participation in the labour market. The best practices draw on gender budgeting practices in Member countries and the OECD’s work with countries in designing and implementing gender budgeting. Keywords: gender budgeting, best practices, gender equality, budgeting Journal: OECD Journal on Budgeting Classification-JEL: H61; J16 Year: 2023 Volume: 23 Issue: 1 Handle: RePEc:oec:govkaa:9574ed6f Template-type: ReDIF-Article 1.0 Author-Name: Sean Dougherty Author-Name: Christian Morabito Title: Financing and delivering early childhood education and childcare across levels of government Abstract: This paper explores how Early Childhood Education and Childcare (ECEC) can be more effectively financed and delivered to promote human capital development, economic growth and well-being. It discusses evidence showing that quality ECEC contributes to better education outcomes and higher future earnings, particularly for socio-economically disadvantaged children. Yet it identifies challenges in delivering ECEC services, including uneven coverage and lack of affordability in many OECD countries, necessitating intergovernmental fiscal co-operation. In the wake of the COVID-19 pandemic’s disruptive effects on children’s learning and future GDP, the paper underscores the urgent need for effective policy interventions. These include augmenting public spending, implementing equitable fiscal governance models, enhancing the affordability of services and establishing robust monitoring systems. By addressing these issues, the paper posits that we can ensure equitable access to high-quality ECEC and fortify the resilience of our education systems for future generations. Journal: OECD Journal on Budgeting Classification-JEL: H52; H75; I26 Year: 2023 Volume: 23 Issue: 2 Handle: RePEc:oec:govkaa:7bd38503 Template-type: ReDIF-Article 1.0 Author-Name: Camila Vammalle Author-Name: Caroline Penn Author-Name: Chris James Author-Workplace-Name: OECD Title: Applying good budgeting practices to health Abstract: This journal article presents a set of high-level good budgeting practices in the health sector. The purpose of these good practices is to support countries in assessing their own budgeting arrangements for health, and in designing budgeting reforms. The article builds on 10 years of work by the OECD Joint Network of Senior Budget and Health Officials. Keywords: health budgeting, performance budgeting, spending efficiency Journal: OECD Journal on Budgeting Classification-JEL: H11; H51; H61 Year: 2023 Volume: 23 Issue: 2 Handle: RePEc:oec:govkaa:b280297f Template-type: ReDIF-Article 1.0 Author-Name: Daniel Gerson Title: A framework for working effectively across public agencies Abstract: This paper outlines key issues and provides insights to government leaders looking to design and implement initiatives that require joint working across public agencies. The first part of this paper defines key concepts and explores the benefits and related costs of cross-agency initiatives. The second discusses various contextual elements that need to be considered when making decisions about how to design cross-agency initiatives, including the nature of the objectives, the systems of government, and relationships among potential partners. The third section looks at different models across four fundamental elements: governance; people (team support), funding, and performance monitoring. The final section looks at some of the main systemic elements that can support cross-agency initiatives success. Keywords: Public Management, Joined-up Government, Collaboration Journal: OECD Journal on Budgeting Classification-JEL: H11; H83 Year: 2023 Volume: 23 Issue: 2 Handle: RePEc:oec:govkaa:c6b0d3a7 Template-type: ReDIF-Article 1.0 Author-Name: Scherie Nicol Author-Workplace-Name: OECD Author-Name: Jihyun Kim Author-Workplace-Name: OECD Title: Gender budgeting and intersectionality Abstract: The economic and fiscal costs of gender inequalities, such as the gender employment gap, are high. Intersectional analysis improves understanding of gender gaps and the measures needed to address them. This paper looks at how gender budgeting can be expanded to include intersectional analysis, allowing for consideration of how gender inequalities intersect with inequalities based on race, socioeconomic class, sexual orientation and disability. It provides examples from governments that have started to incorporate an intersectional approach to gender budgeting. It also highlights the main benefits and challenges associated with intersectional analysis and considers what governments can do to support an intersectional approach to gender budgeting. Keywords: gender, budget, intersectional Journal: OECD Journal on Budgeting Classification-JEL: J16; H5; H6 Year: 2023 Volume: 23 Issue: 2 Handle: RePEc:oec:govkaa:ffdf0ba7 Template-type: ReDIF-Article 1.0 Author-Name: Álfrún Tryggvadottir Author-Name: Indre Bambalaite Title: OECD performance budgeting framework Abstract: The OECD Performance Budgeting Framework provides four building blocks to guide countries in strengthening their approach to performance budgeting. These are (i) tools and methods for developing meaningful performance information, (ii) accountability and transparency, (iii) a strong enabling environment, and (iv) the use of performance information to inform decisions around the budget. Keywords: public finance, performance budgeting, performance and results, informing budget decisions Journal: OECD Journal on Budgeting Classification-JEL: H61; H11; H50 Year: 2024 Volume: 23 Issue: 3 Handle: RePEc:oec:govkaa:247e9dcb Template-type: ReDIF-Article 1.0 Author-Name: Joseph J. Minarik Title: Targeting public spending: Means-testing and user charging Abstract: This paper argues that countries will need to better assess potential savings in the provision of universal benefits and providing services free to all at the point of delivery. Instead, programmes will need to be targeted at those truly in need, and services only free to those with limited ability to pay. It draws an analogy to the progressivity of the tax system where those with greater means pay higher taxes. A similar philosophy should be the basis of government spending. It highlights examples of the application of means-testing and user charging for key areas including retirement benefits, health care and education. The paper is meant to stimulate discussion among Senior Budget Officials. Keywords: user fees, means testing, redistribution Journal: OECD Journal on Budgeting Classification-JEL: H11; H21; H42 Year: 2024 Volume: 23 Issue: 3 Handle: RePEc:oec:govkaa:2f0da72b Template-type: ReDIF-Article 1.0 Author-Name: Delphine Moretti Author-Workplace-Name: OECD Author-Name: Anne Keller Author-Workplace-Name: OECD Author-Name: Marco Majercak Author-Workplace-Name: OECD Title: Medium-term and top-down budgeting in OECD countries Abstract: This paper, based on preliminary results of the 2023 OECD SBO Survey on Budget Frameworks, takes stock of OECD countries’ practices in top-down and medium-term budgeting. It shows that OECD countries’ fiscal frameworks can be characterised by strong reliance on multiple fiscal rules or objectives for enforcing fiscal discipline, with medium-term and top-down budgeting not used yet to their full potential in some countries. Drawing on the OECD Spending Better Framework, this paper advises that countries that wish to strengthen their fiscal frameworks reinforce the processes and institutions that underpin effective medium-term and top-down budgeting systems. Central to this is producing and publishing more regularly baseline projections of government expenditures and setting credible multi-year expenditure ceilings that serve as stringent guidelines for budget planning, while also allowing for some degree of flexibility under clearly defined conditions. Keywords: medium-term budgeting, top-down budgeting, fiscal framework, fiscal rule, MTEF, baselines, expenditure ceilings Journal: OECD Journal on Budgeting Classification-JEL: H61 Year: 2023 Volume: 23 Issue: 3 Handle: RePEc:oec:govkaa:39425570 Template-type: ReDIF-Article 1.0 Author-Name: Scherie Nicol Author-Workplace-Name: OECD Author-Name: Igor Dosen Author-Workplace-Name: Parliament of Victoria Title: The emergence of strategic budget initiatives Abstract: The growth of strategic budget initiatives – such as gender budgeting and green budgeting - has been a prominent trend in OECD countries. This is driven by a desire to use the budget to help deliver transformational change in relation to key policy priorities demanding a whole-of-government response. This paper outlines the emergence of strategic budget initiatives across OECD countries and offers some preliminary observations on how these initiatives are being designed and implemented. Keywords: strategic budget initiatives, gender budgeting, green budgeting, priority budgeting Journal: OECD Journal on Budgeting Classification-JEL: H61 Year: 2024 Volume: 23 Issue: 3 Handle: RePEc:oec:govkaa:8053099b Template-type: ReDIF-Article 1.0 Author-Name: Delphine Moretti Author-Workplace-Name: OECD Title: Rise of non-standard policy Instruments: Can budgeting catch up? Abstract: For implementing their economic and social policies, governments have traditionally relied on direct spending but increasingly use “non-standard” policy instruments, such as loans and guarantees. However, in many OECD countries, loans and guarantees are not yet submitted to the same scrutiny than direct spending as part of the budget process, and future costs associated with the use of these policy instruments are often not estimated, nor provisioned, making them appear initially costless. In turn, this generates risks of potentially biased budgetary decision making, deviations from medium-term spending plans and limited transparency. Considering experiences of OECD countries, this paper advises that budget offices take a leading role in proposing budgetary treatments for loans and guarantees that ensure an even-level playing field with traditional spending and put considerations of efficiency of spending above optimisation of short-term fiscal outcomes. Keywords: budgeting, accounting, guarantees, loans Journal: OECD Journal on Budgeting Classification-JEL: H5; H6 Year: 2023 Volume: 23 Issue: 3 Handle: RePEc:oec:govkaa:b58f0956 Template-type: ReDIF-Article 1.0 Author-Name: Brian Finn Author-Workplace-Name: OECD Title: Budgeting in Moldova: Strengthening public finance management Abstract: This report examines public financial management in Moldova, with a particular focus on budget preparation, execution and reporting. Moldova has already implemented the foundations of modern budget arrangements, and has made good progress in aligning with the OECD Recommendation on Budgetary Governance. The most significant reforms have been the introduction of new budget legislation, greater transparency of budget arrangements, a medium-term budget framework, performance budgeting, reforms to capital expenditure management, and piloting spending reviews. This report focuses on ways to strengthen existing arrangements to improve the quality of the country’s system of budgetary governance. Keywords: budgetary discipline, fiscal discipline, budget deficit, public debt, parliament, financial management, budget preparation, budgeting, capital investment, local authorities, Moldova Journal: OECD Journal on Budgeting Classification-JEL: H61 Year: 2024 Volume: 24 Issue: 1 Handle: RePEc:oec:govkaa:1ae6b030 Template-type: ReDIF-Article 1.0 Author-Name: John M. Kim Title: The origin of budgeting Abstract: When and how did budgeting as we know it come to be? This inquiry yields some surprising answers. The budget system evolved as an integral part of the development of the modern democratic state, and hence replicates within itself the core principle of separation of powers. This process first took place in England over some five centuries. Once established, however, the budget system spread quite rapidly: most Western countries adopted it in the nineteenth century; the rest of the world, in the latter half of the twentieth. The propagation was so successful that virtually all countries currently subscribe to one same model of budgeting. Underneath the minor cosmetic differences, the basic framework of allocating budgetary authorities between the government and the legislature, and the principles that govern the interactions between them, are identical among virtually all countries, including even those that subscribe to different notions of government than Western democracy. Keywords: Budget system, separation of powers, budgeting framework and principles, history and worldwide propagation Journal: OECD Journal on Budgeting Classification-JEL: H61; K10; H10; H11; N10 Year: 2024 Volume: 24 Issue: 1 Handle: RePEc:oec:govkaa:365aa499