Update on Progress of the Program and Performance Budgeting Working Group (PPBWG) and Future Plans PEMPAL Budget Community of Practice (BCOP) Program and Performance Budgeting Working Group Nikolay Begchin MoF Russian Federation, PPBWG Lead March 2018

Reminder: Working Group Factsheet Goal: To identify main trends observed in program budgeting and spending reviews in developed and PEMPAL countries so that efficient approaches to such practices can be subsequently developed and spending effectiveness improved. BCOP members have consistently identified program and performance budgeting as a priority area in their countries’ budgeting reforms. Objectives: to identify key trends in program and performance budgeting implementation and spending reviews to learn from specific PEMPAL and international country examples in these areas.

Reminder: Working Group Factsheet Extensive partnership with the OECD: participation in the OECD’s Performance Budgeting Survey, participation and contribution to the OECD Performance Network and the OECD CESEE meetings. Working Group members (15 countries): Albania, Armenia, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia, Kosovo, Kyrgyz Republic, Moldova, Russian Federation, Serbia, Turkey, Ukraine, and Uzbekistan.

1st meeting - Ljubljana, June 2016 2nd meeting – Paris, November 2016 PPBWG Activities: Reminder of 2016 activities Launch- Minsk 2016 1st meeting - Ljubljana, June 2016 2nd meeting – Paris, November 2016 Main results included: Participation in the OECD’s Performance Budgeting Survey facilitated through PPBWG. PPBWG workshop to: review the findings of the World Bank’s report Towards Next Generation Performance Budgeting: Reflections on the Experience of Seven Reforming Countries, review in detail the French experience in performance budgeting implementation reviewed the key trends in spending reviews in Ireland and the Netherlands

PPBWG Activities in the Last Year Timeline Activity Apr 2017 Presented the findings of the 2016 OECD-PEMPAL Performance Budgeting Survey and comparison in Bishkek Presentation of five PEMPAL country cases on program budgeting reform Collection of member country priorities – main focus to be on performance indicators Jul 2017 Presented the findings of the the 2016 OECD-PEMPAL Performance Budgeting Survey at the OECD CESEE SBO meeting in Paris Participated at the OECD CESEE SBO sessions on spending reviews and on draft OECD Best Practices for Performance Budgeting Decided to work on knowledge resource on performance indicators Summer 2017 Collected and analysed comprehensive full sets/examples of performance indicators from nine PPBWG countries

PPBWG Activities in the Last Year Timeline Activity Sep 2017 Held a VC working session: Agreed on the 10 criteria for review of PIs in PEMPAL countries Each country presented against these 10 criteria Discussed initial summary findings Decided to also further focus the review on PIs in the sectors of health and education Oct-Nov 2017 Collected and analyzed PIs in the sectors of health and education Prepared comprehensive presentation on PI review based on 10 criteria and more detailed review of health and education PIs and solicited comments from PPBWG

PPBWG Activities in the Last Year Timeline Activity Nov 2017 Participation of a small BCOP delegation at the meeting of the OECD’s Network for Performance and Results in Paris: Presented PEMPAL, BCOP, and PPBWG’s work Presented summary findings of the PI review at the meeting of the OECD’s Network for Performance and Results Presented the country case of Russian Federation Participated at the OECD Performance and Results Network’s sessions, including role of ICT and big data in performance budgeting, emerging trends in spending reviews, and improving the use of evidence in performance budgeting Participated and contributed to Network’s working sessions to provide inputs on OECD’s Best Practices in Performance Budgeting (to be presented later today by OECD and to be translated by the PPBWG into PEMPAL languages once finalized by the OECD)

PPBWG Activities in the Last Year Timeline Activity Winter 2017/2018 Prepared the draft formal version of the PPBWG’s knowledge product – report on Performance Indicators in PEMPAL Countries: Trends and Challenges (translated and circulated as background material for this meeting). Takes stock of main characteristics of the indicators collected in budget planning processes in PEMPAL countries and identifies main challenges of PEMPAL countries related to performance indicators. It comprises of two parts: general PI review based on 10 criteria & detailed review of PIs in health and education. Both parts provide the summary joint analysis and information per each country. It is supplemented by the sets of PIs or examples of PIs collected from ten PPBWG countries, which have been circulated to PPBWG member countries. This knowledge product is meant to be used as a benchmarking tool, as well as a resource od specific PIs used in other countries. It will be considered by the PPBWG in its decisions on the focus of future work of the PPBWG.

PPBWG Activities in the Last Year Timeline Activity Mar 13th 2018 Workshop of the PPBWG to examine performance budgeting in Austria with the Austrian Ministry of Finance and the Federal Chancellery of Austria Austrian Budget Reform – Performance Budgeting Regulatory Impact Assessment Role of the Federal Performance Management Office: Quality Control of Objectives and Indicators, Monitoring and Reporting Technical discussion Mar 15th 2018 PPBWG Day in BCOP Plenary meeting in Vienna (today): Presentation of the summary findings of the knowledge product on Performance Indicators in PEMPAL Countries: Trends and Challenges Presentation of the OECD’s Draft Best Practices in Performance Budgeting Presentation on two PEMPAL country case on performance indicators Discussion groups

Future Activities of the Working Group Topics related to program and performance budgeting remain priorities of our countries, based on data collected from you prior to this meeting As presented yesterday by BCOP Deputy Chair, majority of countries list at least one of the following topics as their main reform priority in upcoming period: monitoring and evaluations of expenditure including spending reviews (most frequently selected topic), programs, and performance indicators Possible focus of future PPBWG work on the following topics: Key National Indicators (KNIs) impact and performance evaluations of government programs further discussions on spending reviews performance budgeting at local governance levels Continue learning from OECD countries on methodological approaches and lessons learnt on the issues of the PPBWG focus. The PPBWG leadership and the BCOP Executive Committee will take these inputs into account when developing the Action Plan for FY2019. Do our member countries have any additional thoughts on how we should we organize future activities of our Working Group? What should be the topic of our next learning event and possible further knowledge products?

Thank you for your attention! All Working Group event materials can be found in English, Russian and BCS at www.pempal.org and additional materials on BCOP wiki