1. Sequencing and Pacing of the Austrian Federal Budget Reform Veronika Meszarits Advisor Budget Reform veronika.meszarits@bmf.gv.at OECD Network on Performance and Results, Paris, 27 Oct. 2008

2. 2 A comprehensive reform implemented in 2 stages Result-oriented management of state bodies Performance Budgeting New budget structure: „global budgeting“ Accrual accounting and budgeting As of 2009 – macro level As of 2013 – micro level MTEF (legally binding medium term expenditure framework) Full carry-forward possibilities for line ministries without earmarking

3. 3 Sequencing and pacing of the reform Time dimension: “big bang” 2009 & 2013 with sufficient phasing-in Conceptual dimension: legal framework  no way back! Strategic dimension: getting key players on board, particularly political level OECD Network on Performance and Results, Paris, 27 Oct. 2008

4. 4 The conceptual dimension – “no way back” Both stages of the Budget Reform require an amendment of the legal framework Necessary Legal AmendmentsAdoption 1st stage as of 2009 ConstitutionDec. 2007: Unanimous decision Budget LawDec. 2007: Unanimous decision 2nd stage as of 2013 ConstitutionDec. 2007: Unanimous decision Budget LawPlanned for 2010 OECD Network on Performance and Results, Paris, 27 Oct. 2008

5. 5 The strategic dimension – getting key players on board MoF = Director(ate) General Budget: Reform driver and standard setter Politics and Parliament: -“Advisory Council Budget Reform” with parlamentarians of all political parties -Regular information/meetings MoF with Council -Keeping the reform out of the political debate Court of Audit: Evaluations included in budget documents Line Ministries: Continuous involvement, pilot projects 2011, parallel operation 2013  Cultural change takes time, continuous communication is important OECD Network on Performance and Results, Paris, 27 Oct. 2008