1. Expansion of OECD Performance Budgeting Survey to PEMPAL countries PEMPAL Budget Community of Practice (BCOP) Nicolay Begchin, MoF Russian Federation Leader of the PEMPAL BCOP Program and Performance Budgeting Working Group 28 June 2016

2. OECD and PEMPAL Cooperation OECD and PEMPAL have been working jointly on expanding participation in OECD formal surveys to the countries covered by the PEMPAL region. This is part of the Budget Community of Practice (BCOP) strategic plan that aims to expand availability of data on PEMPAL member countries and to assist MoFs to benchmark and identify good practices within and outside the region. For example, in 2012, 13 PEMPAL member countries participated in the OECD Budget Practices and Procedures survey as part of implementing this plan.

3. PEMPAL survey participants Currently 12 PEMPAL member countries are participating in the OECD Performance Budgeting survey: Armenia Belarus Bosnia and Herzegovina Bulgaria Croatia Georgia Kyrgyz Republic Moldova Russian Federation Serbia Ukraine Uzbekistan

4. PEMPAL OECD survey approach This involves close cooperation with OECD, PEMPAL and the World Bank including a joint workshop that was held before this SBO meeting to discuss preliminary survey results and clarify translated terminology. There are three network languages (English, Russian and Bosnian- Croatian-Serbian) so the PEMPAL Secretariat and World Bank resource team are involved in assisting OECD with coordinating translations and responses, and preparing the final report. Final results will be presented at the annual plenary meeting of all 21 PEMPAL member countries in Kyrgyz Republic planned for February/March 2017. The results will be used as baseline data for a new sub-group of BCOP – the Program and Performance Budgeting Working Group - which has been recently established to progress reforms in the region.

5. Objectives of the new Working Group Identify key trends in: program budgeting implementation; spending reviews. Learn from specific PEMPAL and international country examples in these areas. Participate in OECD survey of performance budgeting to provide baseline data on status of reforms and to identify good practices. Working Group Action plan currently being finalized with new group and PEMPAL Steering Committee has approved budget for activities.

6. Working Group Action Plan 1. Participating in the OECD performance budgeting surveyMarch 2016 – February 2017 2. Working Group Meeting in the context of the 12th CESEE SBO meeting in Slovenia June 27, 2016 3. Russia’s experience in implementing program budgeting (Video conference VC) 2016 /2017 4. Presentation of the findings of the World Bank survey of countries implementing program budgeting (VC) September-October, 2016 5. Workshop on trends and challenges of program and performance budgeting across PEMPAL countries identified in the course of the OECD survey February, 2017 (during the BCOP plenary) 6. Selected country cases -- to be confirmed (study tour)Fall 2016 /Spring, 2017

7. Program Budgeting: Implementation Challenges Financing volumes planned ex ante by program designers greatly exceed budget capabilities; Too many unaligned policy documents which make it difficult for line ministries to formulate their strategic plans; Unresolved terminology issues – difference between evaluation and monitoring; Using performance evaluation mainly as a “punishment or incentive” tool rather than as a means to effectively improve performance; Unsure about the merits of allowing more fiscal flexibility to line miniseries and managers for fear that it might compromise control over budget spending; Practical difficulties in formalizing spending adjustments on programs or actions depending on their performance evaluation.

8. Thank you for your attention!