Dr. Piotr Perczynski and Dr. Marta Postula discuss the challenges in implementing a performance framework through the Polish experience. The presentation highlights that there is no single international model for performance budgeting.

2. The public finance sector in Poland GDP growth in 2005-2013 1

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

8. Performance Budget – modern expenditure management in public sector based on : Multi-annual planning Transparency Effectiveness Efficiency

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

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

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

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

21. Thank you for your attention Ministry of Finance