1. Strengthening Budget Execution Fruits of Experience PUBLIC EXPENDITURE MANAGEMENT BENCHMARKING AND PEER LEARNING WORKSHOP Marriott Hotel, Warsaw, Poland April 2-5, 2006

2. Why is budget execution important? Budget credibility Manage Spending and Revenues to budget support choices of elected officials allow budget to be planning and steering tool promote macrofiscal discipline reduce opportunities for corruption Enable program implementation assure resources flow to programs allow budget to be aid to operational efficiency through spending unit advance planning, efficient administration enable program managers to achieve objective

3. Common Problems in Budget Execution - Symptoms Large deviations between approved budget and actual spending Policy and planning undermined Spending above approved levels Cash shortfalls, arrears Sometimes with cash surpluses elsewhere Cash management supporting central treasury needs, but ignoring service delivery needs Project cost increases Undermining program performance Weak internal controls, with waste, fraud and abuse Insufficient record-keeping, inability to audit Untimely reporting, inability to manage spending Insufficient auditing, no self-correction to system

4. Issues for today Issue 1: Expenditure control, cash management, and service delivery Issue 2: Modern information technology and budget execution Session guidelines 40 minutes per question 5-10 minutes for wrap-up Panelists: 5 minute limit

5. Issue 1: Expenditure control, cash management, and service delivery What major problem encountered and reform undertaken to enhance control over expenditure enhance cash management and planning be responsive to line ministry and program needs Have these solved the problem? Why or why not? Experts: what other lessons or experiences

6. Issue 2: Modern information technology and budget execution How your government uses financial management information systems (FMIS) in managing the budget? Benefits and limitations of current system What lessoned learned in implementing the current system? Obstacles, challenges, solutions Future development What advice to give others embarking on reform?