Download - Performance Budgeting in Austria
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Performance Budgeting in Austria
Hannah GlatzAdvisor Budget Reform
Ministry of Finance, Austria
May 2013
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Austrian Federal BudgetReform - Overview
Result-orientedmanagement of
administrative units
Performance Budgeting
New budget structure:lump-sum budgets
Accrual budgeting andaccounting
Budgetary discipline and planning:
binding medium term expenditureframework
Flexibilityfor line ministriesthrough full carry-forward ofunused funds
new budget principles: outcome-orientation; efficiency; transparency; true and fair view
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Tools
Intended outcomes and outputs are integral part of budgetdecisions
Standardized impact assessment for draft legal acts and majorspending programs (ex ante)
Evaluation of legal acts and major spending programs (ex post)
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Performance Budgeting(GB integrated) - Pyramid
Max. 5 outcome objectives,at least 1 gender objective
Global Budget
1 5 primary
activities
Gender
Detail
Budget
G
Detail
Budget
e
Detail
Budget
n
Detail
Budget
i
Detail
Budget
n
Detail
Budget
cl.
Annual Budget Statement
Explanatorybudget
documents
Budget Chapter
P e r f o r m a n c e C o n t r a c t s
Mission
statement
Detail
Budget
d
Detail
Budget
e
Detail
Budget
r
Global Budget
1 5 primary
activities
is
Global Budget
1 5 primary
activities
included
Objectives
and
Activities
Objectives
and
Activities
Objectives
and
Activities
Objectives
and
Activities
Objectives
and
Activities
Objectives
and
Activities
Objectives
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Activities
Objectives
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Activities
Objectives
and
Activities
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Annual Budget Statementas of 2013 per Chapter 1/2
MTEF = medium term expenditure framework
Mission Statement:
Cash Flow Statement Ceiling
MTEF
Budget
n+1
Budget
n
Actual
n-1
Receipts
Expenditures fix ceiling
Expenditures variableceiling
Total expenditures
Net cash balance
Operating Statement Budget
n+1
Budget
n
Actual
n-1
Revenues
Expenses
Net balance
Legally
b
inding
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Annual Budget Statementas of 2013 per Chapter 2/2
Outcome objective 1:
Why this objective:
What will be done to achieve this objective:
What would success look like:
Max. 5 outcome objectives per chapter
1 outcome objective directly addressing gender equality
Overall objective: Integrated view on budget and performance information
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Annual Budget Statement asof 2013 per Global Budget 1/2
Comment: On global budget level, total expenses (operating statement) and total expenditures (cash flowstatement) are legally binding.
Global Budget xx.01 Operating Statement Budget
n+1
Budget
n
Actual
n-1Revenues from operating activities and transfers
Revenues from financing activities
Revenues l
Personnel expenses
Operating expenses
Transfer expenses
Expenses on financial activities
Expenses
variable expenses thereof
Net balance
Global Budget xx.01 Cash Flow Statement Budgetn+1
Budgetn
Actualn-1
Receipts from operating activities and transfers
Receipts from investment activities
Receipts from repayments of loans
Receipts
Personnel and operating expenditures
Expenditures from transfers
Expenditures from investment activities
Expenditures from loans
Expenditures
variable expenditures thereof
Net cash balance
Legally
binding
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Annual Budget Statement asof 2013 per Global Budget 2/2
Activities/Outputs (max. five incl. gender-activity)
Contribution tooutcomeobjective/s no.
What will be done to achievethe outcome objectives?
Activities/Outputs:
What does success look like?Milestones/Indicators for n+1
What does success look like?
Milestones/Indicators for n
Comments on activities/outputs of the preceding budget statement, which are no longer listed in the present budgetstatement
Recent recommendation of the Court of Audit
Response of the ministry
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Challengesin performance measurement
Complex and multi-causal relationships between outputs andoutcomes
Output x
Output z
Output y
Outcome 1
Outcome 2
Outcome 3
Outcome 6
Outcome 4
Outcome 5
Externalities
Nature of public goods: Quantity and quality are often difficult to defineand to measure (for example security)
Time: Outcomes can often only be measured in the medium/long term
Externalities: positive and negative ones such as economic growth
Bureaucratic overload: too many indicators ...
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Practical Example:Family Policy (Summary)
Outcome: Facilitating compatibility of jobs & family
Why? Labour market participation fosters gender equality
How? Improved childcare facilities by agreements betweenfederal and regional governments; higher participationrate of men in childcare by redesigning family allowances
Success? Birth rate; participation rate of men in childcare;
percentage of children covered by childcare facilities
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Practical Example:E-Government (Summary)
Outcome: More comprehensive e-government services for citizens,enterprises and public administration
Why? Enhanced value for citizens, enterprises and public
administration; paperless handling of applications greensprocesses
How? Several additional e-government projects; cost-benefitanalysis
Success? Number of e-government users, of e-applications and e-official notifications; benefit of e-government projectsaccording to cost-benefit analysis
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Gender Budgeting enshrinedin the Austrian Constitution
Art. 13 of the Austrian Constitution requires:
Federation, States and Communes are to strive for the effective
equality of women and men in their budget management.
According to the Austrian Constitution the Austrian Federation has to
apply Gender Budgeting as an integral element of Performance
Budgeting: Art. 51 of the Austrian Constitution states:
In the budget management of the Federation the fundamental
principles of impact orientation, especially under consideration of the
objectives of the effective equality of women and men . . . are to be
observed.
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Challenges in ImplementingGender Budgeting
Create awareness for gender issues: Identify reasons for stakeholders tosupport GB.
Establish a broad political consensus to implement GB.
Technical:
Focus on the most important issues.
Design of simple tools to support GB (i.e. standards to present GB in thebudget).
Collect, analyze and disseminate sex-disaggregated and gender-related data toidentify the challenges to be tackled.
Provide adequate training of staff.
Political:
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Gender Budgeting on theAustrian Federal Level
may be oriented towards
External/sociopolitical outcomeobjectives; i.e. objectives and activities in the ministrys
portfolio contributing to gender equality
Internal/ministry specific outcome objectives; i.e. objectives and activities regarding
ministries human resource policy contributing to gender equality
is implemented in the context of
Outcome objective on budget chapter level
Outputs on global budget level
Objectives and outputs on detail budget level
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Austrian Budget 2013:Practical GB-Examples
Facilitate combatibility of job & family: Ministries of Finance; Economyand Family; High Courts
Facilitate participation of women in labour market: Ministries ofLabour and Social Affairs; Economy and Family; Transport, Innovation andTechnology
Reduce gender pay gap: Ministry of Finance Safeguard women against violence: Chancellery; Ministry of Interior
Reduce poverty among women: Ministry of Labour and Social Affairs;Ministry of Foreign Affairs.
Improve representation of women in institutions: Chancellery;Ministries of Defense; Science; Economy and Family; Finance
Improve gender data base: Court of Audit; Ministries for Labour andSocial Affairs; Health; Transport, Innovation and Technology
Improve public awareness for gender equality: Parliament;Chancellery.
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Impact assessment
Key tool of performance budgeting
Applies for legal acts and major spending programs national and EUlegislation
An assessment on the main impacts, several dimensions (see next
slide)
Lean process
Forces administration to ex-ante clearly assess
-financial consequences of the respective issue?- consequences for the diverse dimensions?
Only significant impacts are assessed in detail
Supported by a standardized IT-tool
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Dimensions
Impact on
budget (expenditure; revenue)
economy
environment
social issues
gender
consumers
children and youth
administrative costs for citizens and enterprises
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Impact Evaluation
Evaluation- legal acts and major spending programs- in charge: respective line ministry- time interval: 5 years
Impact controlling- intended outcomes and outputs defined in the budget
+ results of evaluations in line ministries
- in charge: chancellery in cooperation with line ministries- twice a year: report to parliament
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Experience
Big cultural issue for administration and parliament: Focus onresults.
Cultural shift supported by intensive training courses.
All ministries delivered outcomes and outputs; administration
had to deal with intended results. Quality varies depending on commitment from ministers and
senior administrative staff (ambition; conciseness).
Consistency is sometimes an issue (betweenrelatedministries; within ministries).
Budget debates in parliamentary committees considerablyfocused more on results than in previous years; ministers grilledfor perceived unambitious results.
Media started to deal with performance issues.
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Thank you for your attention!
Contact address:Hannah Glatz
Advisor Budget Reform
Austrian Federal Ministry of FinanceTel: +43 1 514 33 50 2002
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mailto:[email protected]:[email protected]