Group X (1, 2 or 3).

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Presentation transcript:

Group X (1, 2 or 3)

Group X - Countries Armenia Belarus Georgia Tajikistan Uzbekistan Ukraine Russia

Question 1: What would be an ideally designed methodological and organizational system for spending reviews? Question 2: How should it be ensured that spending reviews are well integrated and used in budget process?

QUESTION 1: Summary of Discussions There can be no standard methodology, it depends on the sector and type of review (comprehensive/random). Coverage depends on the objective of the review. (Belarus) Frequency of spending reviews (SR) must be aligned with the strategic planning period; Option А: A comprehensive (horizontal) SR at the beginning of the strategic planning cycle (if aligned with the strategic planning cycle), followed by identification of specific areas, if needed; Option B: Annual reviews so as to ensure maximum coverage during the strategic planning cycle; As to frequency—especially for comprehensive SR—time and financial costs must be taken into consideration. Engaging independent industry experts; Key role in SR is played by the MOF, along with industry experts from other ministers (conflict of interest between line ministries); Team must be small (manageable); Preferably a dedicated unit in MOF; Setting a quantitative spending cut targets does not address the issue of engaging line ministries; Key challenge – HR and time constraints SR must be aligned with program budgeting

Question 2: Summary of Discussions Regulatory framework: - Defining concepts and authority of stakeholders in the organic PFM law (or presidential decree); - Imperative provisions (1) on taking into account the decisions of the authorized body following the SR when drafting the budget for the respective period; and (2) on preparing and submitting draft regulatory acts on implementation of such decisions within a certain timeframe before the beginning of the next fiscal period; Quality of the SR methodology: an algorithm must be put in place to digitize the decisions following the SR which affect specific expenditure items (budget classification codes) – decisions must not be abstract! Political and social acceptance of SR outcomes; Monitoring of implementation of decisions adopted following the SR (inter alia, relative to the cost of SR).

Thank you