Archive for the ‘Budget Execution’ Category

Should Aggregate Expenditure Ceilings be Comprehensive?

Monday, May 9th, 2016

Aggregate expenditure ceilings are today a feature of budgeting in many OECD countries. An article of mine just published in the OECD Journal on Budgeting addresses a key design issue of the coverage of aggregate expenditure ceilings – should they cover the totality of government expenditure, or is it legitimate to exclude certain categories of expenditure? (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…)