1. International Experience on Institution Redesign to Support Effective Fiscal Management Shabih Ali Mohib Thammasat University July 15, 2014

2. Motivations for Rethinking Fiscal Institutions 2 OECD Countries have over the last 10-15 years taken major redesign to fiscal institutions due to a combination of factors  Improving coordination between budgeting and planning – ensure national development plan is fully integrated into available resources  Reducing administrative overhead, defragmenting and consolidating fiscal management responsibilities within central agency(ies) – ensure on-budget/off-budget resources are integrated and reduce fiscal fragmentation  Enhance internal capacity for managing large integrated infrastructure projects – establishing a central capital appraisal entity and improving PPP

3. Some Fiscal Institutions Models 3 Fully integrated: Single core agency responsible for planning, budgeting, and fiscal management (France, Germany, Korea, New Zealand, South Africa, and the UK) Partially integrated: single agency managing budgeting and financial management, with specialized planning function (Brazil, Indonesia, India, Malaysia, Russia) or one agency for planning and budgeting, with separate agency for debt and revenue management (Australia and US) Separate specialized agencies: different agencies responsible for budgeting, planning, financial, debt and revenue management (Thailand, Philippines)

4. Quest for the best practice fiscal institutions model 4 No consensus on best practice model – countries have to find the best-fit Fiscal institutions that deliver performance tend to demonstrate the following characteristics … high capacities and capabilities to deliver on mandates – latest trend is to focus a lot on effective public investment management Able to coordinate/manage the fiscal system to avoid fiscal fragmentation and integrate plan within the fiscal system Focused on making line agencies deliver on ‘performance’ with due consideration to ‘value’

5. Thank You