1. Performance budgeting
The Benin Experience

2. Why in Benin? Good macroeconomic management
Relatively good economic policies
Inadequate public resource management
Little progress on poverty alleviation

3. Objective
Promote strategic, efficient and equitable use of all public resources
With the goal of promoting economic growth and improving the standard of living

4. Basic Principles
Responsibility for performance, based on agreed indicators
Accountability
Predictable resource flows
Ex post monitoring and evaluation

5. Improve budget management Content
Assure budget discipline
Allocate according to development strategies
Strengthen sector spending programs

6. Improve budget management Execution
Unified, consolidated budget
Decentralized financial management
Ex post audits and controls

7. The program concept Set of sector activities
coordinated in time and space
to provide specific outcomes
A budget based on results
rather than on departmental ‘ needs ’

8. Caracteristics of a program budget
Macroeconomic framework
Well formulated developmental, sectoral, and sub-sectoral strategies
Unified budget
Multi-year perspective

9. The program structure Exhaustive Simple: small number of programs
Comparable magnitude
Taxonomy of programs:
Action program
Transfer program
Support program

10. Criteria for establishing the program structure
Easy to evaluate: simple objectives, measurable impact
Related to strategic priorities
Close to the organic structure
Stable structure
Denomination which makes sense

11. Example: Ministry of Education
Primary Education
Secondary Education
Technical and vocational
Higher education
General administration

12. Example: Ministry of Health

13. Composition of a program
Strategic brief
Logical framework
Indicators
Financing table
Multi-year projections of budget and indicators
Monitoring and evaluation

15. Program indicators Impact Output Input Other indicators
Outcome
Efficiency
Activity
Infant mortality rate
Miles of road maintained
Classrooms constructed
School attendance rate
Unit cost of license
Number of health care consultations

16. Program financing table

17. Monitoring and evaluation of programs
Financial monitoring:
appropriations, commitments, disbursements
monitoring program implementation
Monitoring physical outputs
Monitoring indicators of impact and outcomes
Program evaluation

18. Resource Allocation Process
Initial request based on a continuation of programs
Request for supplemental programs
Extension of existing programs
New activities
New projects
Allocation based on competition
Intrasectoral competition
Intersectoral competition

19. Issues in Benin Difficulty to part from dual budgeting
Capacity issues:
Indicators
Multi-year projections
Pace of reforms
Access by stakeholders

20. Supporters, champions Ministry of Finance
Ministries of education, transport, health, environment
Finance Committee, national Assembly
EU, AfDB, France, Denmark, Switzerland

21. Less supporting Ministry of Planning Project management units
UNDP, USAID