Archive for the ‘Performance Budgeting & Management’ Category

Performance Budgeting Manual now available in Spanish

Tuesday, April 29th, 2014

The performance budgeting manual which I developed in 2011 for the global CLEAR initiative – led by the World Bank – has now been published in Spanish translation under the title Manual sobre la elaboración de presupuestos basados en resultados. The manual is a comprehensive coverage of performance budgeting and its links to related areas of public sector reform.


Harnessing Evaluation as a Budgeting Tool

Tuesday, April 15th, 2014

In the wake of the global financial crisis, many OECD countries are looking to increase the role of evaluation as a tool to support good budgeting. In particular, evaluation is increasingly seen as an important part of the information base necessary to underpin an effective spending review process. Spending review aims to identify savings options which might be implemented on budget, and evaluation as an important role in helping to identify savings options. This raises the crucial question of the relationship between budgeting and evaluation, which is the subject of a paper of mine which has just been published by the World Bank, entitled Connecting Evaluation and Budgeting. (more…)

New Guide on Program Classification Published

Thursday, December 12th, 2013

Correct program classification – that is, defining programs appropriately – is one of the most fundamental elements of a good government-wide performance budgeting system. Yet it is also an area where governments often make serious mistakes. The World Bank has just published a guide entitled Program Classification for Performance-Based Budgeting designed to help governments to define programs appropriately and in a manner consistent with the key objectives of a sound performance budgeting system. Written by myself, this guide sets out a number of rules which should be followed in defining programs. (more…)

Excessive Line-Item Control: FMIS tail wags the dog

Tuesday, November 12th, 2013

The introduction of automated financial management information systems (FMIS) has, in some developing countries, had a remarkable unintended negative effect – namely, to set in a concrete an excessively detailed level of central line-item control over spending ministry budgets. This is a major obstacle to a successful introduction of performance budgeting in those countries. It also prevents ministries from using their resources in an efficient way even under traditional budgeting systems, and contributes to under-execution of budgets. (more…)

Getting Performance Budgeting Right

Thursday, October 10th, 2013

Performance budgeting is an important instrument for improving expenditure prioritization, effectiveness and efficiency. Its relevance is greater than ever today given the tougher fiscal circumstances that face many countries. Reaping the benefits of performance budgeting requires that the performance budgeting systems be properly designed and that they are accompanied by the right types of complementary reforms.

But what sort of performance budgeting works best at the government-wide level? What, on the other hand, does not work? What implementation strategies are required? These questions are the main focus of a chapter I have written for the recently published International Handbook of Public Financial Management. (more…)

Budgeting in Chile

Tuesday, September 10th, 2013

Chile may be a new OECD member country, but in the realm of public financial management and fiscal policy it has a few things to teach many existing OECD members. The OECD Journal on Budgeting has just published a review of Chilean budgeting practice prepared by an OECD mission comprised of myself and two OECD staff members (more…)

PB Manual published in Russian

Wednesday, June 13th, 2012

The manual Performance-Based Budgeting is now available in Russian and Bosnian-Serbo-Croat translations, thanks to PEMPAL, the organization of Eastern European budget officials. The manual, written by myself and originally published in 2010 by CLEAR/World Bank, is a primer on the key forms and elements of performance budgeting. It covers a wide range of topics including  program budgeting, the performance information underpinnings of PB, and the relation of PB to other budgeting and accounting reforms. To access the manual, please go to the following links: English version; Russian version; Serbo-Croat version. It is anticipated that a Spanish translation will be prepared in the near future.

New Performance Budgeting Manual

Saturday, September 17th, 2011

The global CLEAR initiative – led by the World Bank – has just published an important new manual on performance budgeting. (more…)

Is Program Budgeting Unworkable?

Tuesday, July 12th, 2011

Program budgeting has many critics. One of the most prominent is Allen Schick, who has advanced the proposition that budgeting by programs is unworkable because it is inconsistent with budgeting by organizational unit. Schick’s argument (2007: 113-6) is based on three propositions (more…)

Programs and Organizational Structures in Developing Countries

Monday, October 18th, 2010

Nowhere are the difficulties arising from conflicts between program and organizational structure more of a challenge than in developing countries. As discussed in a previous piece, the most serious technical challenge arises from the existence of organizational units which contribute to several programs. Where this is the case, it is necessary to allocate the expenditure of these organizational units between multiple programs in budget preparation and financial reporting. This is a challenge which is beyond the capacity of most developing countries. (more…)