Performance Budgeting Survey 2016 Ronnie Downes Deputy Head, Budgeting and Public Expenditures OECD CESEE SBO meeting / PEMPAL workshop Ljubljana, 27-29 June 2016

Performance Budgeting – Simple in Theory… € ₩ $     Traditional focus: financial inputs – “how much is spent” Now balanced with a performance, output focus – “how much is bought”

…Difficult in Practice What happens when performance objectives are not met? Lack of clarity about how exactly to respond to poor performance. More resources, or fewer? Is a management response required? There is – and perhaps should be – no “automaticity” about how to respond to performance budgeting challenges – a nuanced, case-specific judgement is required.

OECD Performance Budgeting Survey 2016 Objectives Explores the ‘state of the art’ in three categories: Performance budgeting Evaluation Spending Review Build upon past surveys (2007, 2011) Construct time series data to examine trends Drill deeper on key issues raised in past surveys Identify key issues for principles in performance budgeting

OECD Performance Budgeting Survey 2016 Summary High response rate Strong governance procedures in place Spending reviews are the emerging trend Budget impacts remain elusive

Part II Initial findings among OECD countries

The management of Performance Budgeting is well-developed Centralised performance frameworks are widespread

The management of Performance Budgeting is well-developed More countries have specialised performance units

Line ministries are involved Line ministries are involved in key aspects of performance budgeting in nearly all OECD countries

More countries than ever conduct spending reviews Periodic, comprehensive reviews are the model of choice

Yet, impacts on budget outcomes lag Few countries can claim measurable achievement of fiscal and performance objectives following spending reviews

Part III 2016 survey guidance to PEMPAL

Reflections on the administration of the 2016 survey Survey strengths Process & governance (Q7-14; 40-41, 44, 50-52) What are the key elements of your country’s performance framework? (Q9)

Reflections on the administration of the 2016 survey Survey strengths Process & governance (Q7-14; 40-41, 44, 50-52) Roles (Q20, 42-43, 54) Which institutions play important roles in generating and using performance information in each aspect of the budgeting process? (Q20)

Reflections on the administration of the 2016 survey Survey strengths Process & governance (Q7-14; 40-41, 44, 50-52) Roles (Q20, 42-43, 54) Spending review details (Q50-56) Please indicate which government actors are primarily responsible for the following spending review procedures (Q54)

Reflections on the administration of the 2016 survey Problematic questions Sector-by-sector distinctions (21, 33) Insights on practical use (22-23, 37-38, 47) Quantitative measures of effort (61-65)

Reflections on the administration of the 2016 survey Opportunities for high-quality, useful survey results Information types (18-19, 30-31) What percentage of the total performance information provided by Line Ministries/Agencies to the CBA as part of budget submissions falls into the following categories… (Q18)

Reflections on the administration of the 2016 survey Opportunities for high-quality, useful survey results Information types (18-19, 30-31) Performance targets: target setting (24-25) & revision (27) Does your government set performance targets? (Q24)

Reflections on the administration of the 2016 survey Opportunities for high-quality, useful survey results Information types (18-19, 30-31) Performance targets: target setting (24-25) & revision (27) Impacts (37-38, 47, 57) For roughly what percentage spending reviewed in the 2011-2014 period have objectives been met? (Q57)

Part IV What’s next?

Project schedule OECD Performance & Results Network Phase 1 OECD survey design Phase 2 Survey administration Phase 3 Data verification January 2016 March 2016 Spring 2016 Complete Complete Near completion Phase 4 Analysis Phase 5 Draft report to network Phase 6 Publish report Summer 2016 Fall 2016 2017 Ongoing

Will the survey results help us move towards “Guiding Principles of Performance Budgeting”? use ready-made performance data from policy cycle clear programme logic linking inputs, outputs, outcomes seamless link to government-wide strategy and goals avoid information overload – the “vital few” indicators Include national and international benchmarks organisational, managerial accountability for results Establish routines of behaviour within organisations audited and auditable performance targets citizen- and CSO-accessible data