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Geoff Dixon

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... is parallel and subordinate to deeply entrenched old budget preparation process ... deeply entrenched input focused line item budgeting ... – PowerPoint PPT presentation

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Title: Geoff Dixon


1

Improving Budget Preparation in KR
  • Geoff Dixon
  • World Bank PPER consultant
  • Mark Silins
  • DFID Senior Consultant

2
Government is reforming budget preparation
  • MTBF
  • Program budgeting

BUT PEFA assessment of budget process is
mixed Question does this mean reform is not
working well?
3
  • Answer YES! Reform is parallel and
    subordinate to deeply entrenched old budget
    preparation process
  • Instead of good annual budget preparation we have
    three parallel processes
  • deeply entrenched input focused line item
    budgeting
  • beginnings of a program budgeting results focus
  • MTBF submissions which do not connect with either
    of the above

4
  • Program budgeting has been a parallel process to
    budget preparation

  • line ministries are confused AND their
  • capacity is over-stretched
  • MOF plays post office role


5
Weak MTBF submissions
  • submissions fail to prioritize proposals
  • due to weak sector strategies
  • costing is weak

6
Consequences of parallel processes
  • Existing spending is reviewed each year from
    input perspective rather than results perspective
  • Resulting lack of budget flexibility means
    existing spending rolls forward year by year,
    crowding out new spending priorities

7
  • Conclusion 1
  • Connecting the parallel processes requires sector
    ministries to improve their internal spending
    planning
  • identifying results of their activities
  • assigning costs to these results
  • managing sector policy priorities
  • ABOVE ALL line ministries need to use cost and
    results information in preparing their budget
    requests to MOF

8
Conclusion 2
  • Connecting the parallel processes also requires
    MOF to
  • require both economic line item and results
    information in ministry budget requests
  • bounce submissions which dont conform

9
  • The necessary processes (program budgeting,
    MTBF) are in place.
  • They now need to be used as intended.

10
Four Separate Budget Processes - Reform in
isolation
11
Policy Driven Budgeting
12
What is the Progress In 2005
  • MoF led workshops with budget institutions
    focussing on linking the budget to strategic
    processes
  • Review of Programme submissions for compliance
    with the Budget Circular
  • In each of the five sectors in the MTBF process,
    improvements were noted in submissions for 2006

13
Review of the MTBF
  • Seeking to better align the three budget
    formulation Processes
  • Focussing on presentation of baseline data eg
    2004/2005 data
  • Comprehensiveness of presentation examine
    whether capital budgets can be allocated to
    sectors for presentation purposes

14
2006
  • Better integration of the three budget
    formulation processes
  • Chart of Accounts anomalies addressed
  • MoF, with support of donors, will convene more
    bilateral educational processes around the
    budget cycle these will be focussed on
    addressing practice rather than theory

15
Early Thoughts on 2006 Budget Process
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