9 10.15am Challenges In Implementing A Performance Framework (P. Perczynski And M. Postula) English
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The document discusses the implementation of a performance budget framework in Poland, highlighting its development stages from 2006 to 2012. It outlines the importance of multi-annual planning, transparency, and efficiency in public finance, while noting the challenges and modifications required to adapt foreign models to Polish conditions. The performance budget aims to rationalize resource use and improve government efficiency across various sectors of public finances.
9 10.15am Challenges In Implementing A Performance Framework (P. Perczynski And M. Postula) English
- 1. CHALLENGES IN IMPLEMENTING A PERFORMANCE FRAMEWORK – Polish experiences dr. Piotr Perczynski National Coordinator for Performance Budget in Ministry of Finance Washington DC; December 3th, 2009 Ministry of Finance
- 2. The public finance sector in Poland GDP growth in 2005-2013 1
- 3. The public finance sector in Poland Revenue, expenditure and public finances result in 2005 - 2010 (% GDP) MF data, draft of nb 2010: forecast 2009-2010; Result ESA’95: Eurostat 1999-2008, UC Forecast 2009-2010
- 4. The public finance sector in Poland - debt to GDP ratio in 2005-201 2
- 5. The puzzle of public finance fiscal rules consolidation of fiscal sector performance budget multi-annual planning
- 6. Polish model of Performance Budget Polish solutions only to be directly applied in Poland . Countries which directly adopted foreign models later had to adjust these models or reconstruct them completely with respect to: specifics of their own public finances ; national priorities ; social-economical circumstances . There is no single model of performance budget
- 7. The Pol ish definition of Performance Budget Performance budget – consolidated expenditure plan for entities from the public finance sector for more than one budgetary year, prepared in a functional system (function, task, subtask), based on the targets and measures of their realisation.
- 8. Performance Budget – modern expenditure management in public sector based on : Multi-annual planning Transparency Effectiveness Efficiency
- 9. Polish calendar of Performance Budget 2006 2007 February 2008 2010 4 th stage 3 rd stage 2 nd stage 1 st stage 2012
- 10. Governmental initiative Performance Budget – a pilot stage in the Ministry of Science and Higher Education The first rules concerning performance budget in Public Finance Act 1 st stage February 2006 – February 2007
- 11. Presentation of performance budgets of most budgetary chapters trustees into justification to budgetary act draft for 2008 . Performance budget covers 44% of State budget expenditure. Multi-annual structure principle is not in full use. H igh degree of trustee discretion into shaping budget’s structure on all levels. 2 nd stage February 2007 – February 2008
- 12. In the first quarter of 2008 the project moved to the M oF. Methodological changes aimed towards: setting tasks by the Ministry of Finance Decree to introduce budgetary expenditure classification based on COFOG ; preparing indicators, which enable full application of medium-term and multi-annual expenditure planning mechanisms ; implementation of functional structure of performance expenditure planning. 3 rd stage February 2008 – 2010
- 13. F unctional structure of performance expenditure planning State functions – expenditure of one State activity area; Tasks – expenditure according to objectives ; Subtasks – influence on the achievement of objectives on the task level ; Activities – most important elements of objectives achievement process on the level of subtask and task. 1 st level 2 nd level 3 rd level 4 th level
- 14. Objective setting – levels Priority objectives Set by Prime Minister on the functional level Strategic objectives Set by Minister/Office Head on the task level Operational objectives Set by Secretary/Undersecretary of State on the task and subtask level Administrational objectives Set by General Director on the task and subtask level
- 15. P rocess 6 Ministry of Finance Individual Ministries National Coordinator for Performance Budget Department of Public Finance Reform State Budget Department Strategic group (representatives of management) Ministry coordinators Budget Departments
- 16. Expenditure plan in P erformance Budget structure in 2008 and 2009 Performance budgeting structure of expenditure 2008 r. 2009 r. 166 tasks 454 subtasks 656 objectives 957 indicators 152 tasks 550 subtasks 1041 objectives 1060 indicators performance budget cover 44% of State budget expenditure; performance budget cover 100% of State budget expenditure; part of trustees excluded from performance planning; the first performance budgeting structure of expenditure for all budgetary chapters trustees; preliminary expenditure projection for two bugetary years; full expenditure projection for 2010 and 2011; tasks and subtasks specified by trustees within the scope of particular budgetary chapters. tasks and subtasks defined by trustees in accordance with functional expenditure structure , according to the list of functions and tasks specified by the Minister of Finance.
- 17. Example of Function 20. Organization of health policy and health care Possibility to compare trustees’ effectiveness and efficiency of spending within the equivalent activity List of all trustees’ objectives determined by their policies Possibility to show all trustees who realize objectives in the given function Consolidation of expenditure spent by all trustees on objectives within given function Function/task/subtask Trustees Chapter Objective Indicator Planned state budget expenditure in 2009 (thousand pln) Name Base value Value in 2009 Total Specific provision’s share 1 2 3 4 5 6 7 8 9 Function 21. Organization of health policy and health policy 1 724 657 53 790
- 18. Budgetary act for 2010 in P erformance B udget structure 100% of State budget expenditure in performance budget structure . Forecast for 2011-2012 in performance budget structure . Multi-annual and investment programs in performance budget structure . Financial plans of other public finance sector units (100% of agencies, 25% of state legal entities ). Description of tasks and subtasks . Specification of priority tasks in strategic areas . Description of financial plans of public finance sector units . Table form Descriptive form
- 19. 201 2 Executed simultaneously according to traditional and performance classification 4 th stage 2010 – 2012 Traditional Budget Performance Budget Annual report of 2012 in performance budgeting structure with elements of traditional structure
- 20. Target benefits from P erformance B udget implementation in Poland rational use of resources by public administration – decrease of the cost for State functioning and transfer achieved savings to priority tasks , optimiz ing of employment level in public sector ; assurance of planning cohesion of funds for tasks conducted by various institutions within the framework of State budgetary functions ; improvement of efficiency and effectiveness of government administration and judicial entities ; more universal and competent supervision and estimation of public funds spending , beneficial from the point of view of the qualitative and quantitative aspects of costs.
- 21. Thank you for your attention Ministry of Finance