S ESSION 26 HOW TO DO BUDGET ANALYSIS: TOOLS & METHODS Romulo E. M. Miral Jr. Congressional Policy and Budget Research Office House of Representatives Congress of the Philippines 1 3 RD A NNUAL G LOBAL N ETWORK OF P ARLIAMENTARY B UDGET O FFICES ASSEMBLY O TTAWA, C ANADA, 7-12 J UNE 2015

How to do Budget Analysis: Tools & Methods Line item budget analysis Performance budget analysis Zero-based budget analysis How to analyse MTEF

Relationship of Budget Variables and Macroeconomic Variables Deficit Expenditure Revenue _ = Inflation Interest rate Exchange rate Gross Domestic Product Demand Private Consumption Government Expenditure Investment Export minus Imports Supply Agriculture Industry Services

Migara De Silva, What is MTEF and Why It is Important?: A Brief Overview, World Bank Institute

Line item budget analysis

Performance Budgeting Sector Outcome Longer-term benefits for the sector from the initiatives or the department or agency. Organizational Outcome Short- to medium-term benefits to clients and community as a result of the department’s or agency’s delivery of MFOs. Major Final Output or MFO Good or service that a department or agency is mandated to deliver to external clients through the implementation of programs, activities and projects. Performance Indicator Characteristic of performance such as quality, quantity, timeliness and cost that measures how efficiently a department or agency has delivered its MFOs. Department of Budget and Management, The Performance Informed Budget, Philippines

Zero-Based Budgeting Establish the continued relevance of program objectives given the current developments/directions Assess whether the program objectives/outcomes are being achieved Ascertain alternative or more effective and efficient ways of achieving the objectives, and ultimately Guide decision makers on whether the resources for the program/project should continue at its present level, or be increased, reduced or discontinued Rolly Toledo, An Overview of ZERO-BASED BUDGETING Approach, Department of Budget and Management, Phil.

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