1. International experiences, France Visa Paajanen, 5.10.2011

2. 2 Performance-based budget in France Started in 2001, new law: performance-based budget “long” preparation stage - testing 2005 - government prepared objectives and indicators - parliament, Court of Audit and Inspectorate General review objectives and indicators and programme organisation new system enforced 2006

3. Goal for performance-based budget earlier (before reform 2006) parliament debated only for totally new expenditures (this was normally 5-6 % of total budget) reform to – give better budgetary authority to parliament, possibility to allocate appropriations between programmes (and missions) – transparency to decision-making – efficiency to financial management

4. 4 Performance-based budget Structure Missions (around 30): major government policies (under one or several ministries) Programmes (over 100): single programme in one ministry -strategic plan, performance goals and indicators (socio- economic effectiveness, quality of service and management efficiency) Actions (over 500): specify spendings programme manager: assists minister in preparation of strategy, objectives and indicators strategy, objectives and indicators presented to parliament (annex to budget)

5. Parliament valuation of system in 2009 Several recommendations: better ownership for objectives and indicators (government, minister, programme maneger) more standardised indicators, comparisons between programmes need for better information system, lot of manual collection of data

6. Evaluation - often there is no connection between performance management and operational management => managers complains: performance-based budget is just extra work - still no good connection between performance and budgetary process => parliaments role is crusial