1. Group X (1, 2 or 3)

2. Group X - Countries
Armenia
Belarus
Georgia
Tajikistan
Uzbekistan
Ukraine
Russia

3. 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?

4. 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

5. 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).

6. Thank you