Presentation by Amal Lahrlid at the 7th annual meeting of the MENA Senior Budget Officials held on 10-11 December 2014. Find more information at http://www.oecd.org/gov/budgeting
The document discusses various aspects of public financial management including:
1) It outlines the key components of a public financial management system including resource generation, allocation, and expenditure management.
2) It describes the evolution of budgeting approaches from line-item budgets to performance and zero-based budgeting.
3) It discusses elements of modern budgeting reforms including medium-term budget frameworks, increased transparency, and a focus on results rather than just inputs.
The document discusses parliamentary control over public finances in India. It notes that parliamentary control is central to public accountability. Parliament sets financial management goals and oversees performance. Key controls include only allowing withdrawal from funds after an appropriation bill passes, and committees that examine spending and ensure it follows policies. The main committees that aid oversight are the Public Accounts Committee, Committee on Public Undertakings, Estimates Committee, and Departmentally Related Standing Committees. The budget process and important budget documents are also summarized.
Traditional budgeting system (TBS) was the earliest formal budgeting system used by most countries prior to World War II. [1] TBS is an annual, incremental system that focuses on line-item expenditures like personnel and maintenance rather than overall goals or objectives. [2] TBS provided accountability for funds utilization and ensured expenditures matched original plans, but it did not determine objectives or evaluate effectiveness and efficiency. [3]
This document discusses public fiscal administration in the Philippines. It defines public fiscal administration as the formulation, implementation, and evaluation of taxation, revenue administration, resource allocation, budgeting, public expenditure, borrowing, debt management, accounting, and auditing policies. It describes how fiscal policies are closely linked to other government policies and are influenced by political processes. It also outlines the key government agencies involved in fiscal policy administration and their roles, including the Department of Finance, Department of Budget and Management, National Economic Development Authority, Bangko Sentral ng Pilipinas, and Development Budget Coordination Council.
The document discusses treasury management and debt management. It covers managing government bank accounts, financial planning and forecasts, and debt management. Specifically, it notes that the treasury must supervise all central government bank accounts. Financial planning includes preparing annual cash plans, monthly cash plans, and in-month forecasts to ensure cash flows align with budgets. Debt management policies aim to finance deficits and minimize borrowing costs, while promoting transparency and predictability.
This document provides an overview of public finance including its key concepts and components. Public finance is the study of government expenditures and revenues. It examines how governments finance their spending and the institutions and processes involved. The key elements of public finance are government overhead, public revenues, and the general budget. Public expenditures must be cash payments by a public entity to achieve a public benefit. They are subject to rules of utility, economy, and legal authorization. Expenditures can be classified as ordinary/extraordinary and real/transformative based on periodicity, recurrence, and purpose.
Dorotinsky public financial management trends and lessonsicgfmconference
This document discusses trends in public financial management (PFM) reforms. It outlines the objectives of PFM as macrofiscal discipline, strategic resource allocation, and technical efficiency. Popular reforms aim to change incentives to better meet these objectives by altering rules, roles, and information. Recent reforms have focused on budget formulation tools like capital budgets and performance budgets differently across countries based on income level. There is a need for PFM reforms to address real problems and be tailored to each country's circumstances and stage of development.
The document discusses various aspects of public financial management including:
1) It outlines the key components of a public financial management system including resource generation, allocation, and expenditure management.
2) It describes the evolution of budgeting approaches from line-item budgets to performance and zero-based budgeting.
3) It discusses elements of modern budgeting reforms including medium-term budget frameworks, increased transparency, and a focus on results rather than just inputs.
The document discusses parliamentary control over public finances in India. It notes that parliamentary control is central to public accountability. Parliament sets financial management goals and oversees performance. Key controls include only allowing withdrawal from funds after an appropriation bill passes, and committees that examine spending and ensure it follows policies. The main committees that aid oversight are the Public Accounts Committee, Committee on Public Undertakings, Estimates Committee, and Departmentally Related Standing Committees. The budget process and important budget documents are also summarized.
Traditional budgeting system (TBS) was the earliest formal budgeting system used by most countries prior to World War II. [1] TBS is an annual, incremental system that focuses on line-item expenditures like personnel and maintenance rather than overall goals or objectives. [2] TBS provided accountability for funds utilization and ensured expenditures matched original plans, but it did not determine objectives or evaluate effectiveness and efficiency. [3]
This document discusses public fiscal administration in the Philippines. It defines public fiscal administration as the formulation, implementation, and evaluation of taxation, revenue administration, resource allocation, budgeting, public expenditure, borrowing, debt management, accounting, and auditing policies. It describes how fiscal policies are closely linked to other government policies and are influenced by political processes. It also outlines the key government agencies involved in fiscal policy administration and their roles, including the Department of Finance, Department of Budget and Management, National Economic Development Authority, Bangko Sentral ng Pilipinas, and Development Budget Coordination Council.
The document discusses treasury management and debt management. It covers managing government bank accounts, financial planning and forecasts, and debt management. Specifically, it notes that the treasury must supervise all central government bank accounts. Financial planning includes preparing annual cash plans, monthly cash plans, and in-month forecasts to ensure cash flows align with budgets. Debt management policies aim to finance deficits and minimize borrowing costs, while promoting transparency and predictability.
This document provides an overview of public finance including its key concepts and components. Public finance is the study of government expenditures and revenues. It examines how governments finance their spending and the institutions and processes involved. The key elements of public finance are government overhead, public revenues, and the general budget. Public expenditures must be cash payments by a public entity to achieve a public benefit. They are subject to rules of utility, economy, and legal authorization. Expenditures can be classified as ordinary/extraordinary and real/transformative based on periodicity, recurrence, and purpose.
Dorotinsky public financial management trends and lessonsicgfmconference
This document discusses trends in public financial management (PFM) reforms. It outlines the objectives of PFM as macrofiscal discipline, strategic resource allocation, and technical efficiency. Popular reforms aim to change incentives to better meet these objectives by altering rules, roles, and information. Recent reforms have focused on budget formulation tools like capital budgets and performance budgets differently across countries based on income level. There is a need for PFM reforms to address real problems and be tailored to each country's circumstances and stage of development.
This document discusses public finance and the role of actuaries. It defines public finance as the economics of paying for governmental activities and administering those activities. It describes types of government expenditures and sources of funding. Charts show the size of governments and number of governments in the US. The document outlines actuarial principles of statistical frameworks, economic behavior, facts-based analysis, and risk transfer. It proposes actuarial roles in policy evaluation, long-term financing decisions, and advising on costs and benefits of policies, funding, and emerging societal risks.
The budgeting process involves four phases: preparation, authorization, execution, and accountability. During preparation, the Development Budget Coordinating Committee determines economic targets and expenditure levels. Government agencies then prepare their budget estimates. The President submits the proposed budget to Congress, where it undergoes review before becoming law through the General Appropriations Act. The Department of Budget and Management implements the budget through fund releases to agencies and ensures proper allocation and spending of funds.
The document compares public expenditure management (PEM) reforms in New Zealand and Australia. Both countries introduced reforms to improve aggregate fiscal discipline, allocation efficiency, and operational efficiency. New Zealand's reforms included establishing state-owned enterprises, abolishing permanent public sector tenure, enhancing transparency through the Public Finance Act, and the Fiscal Responsibility Act. Australia introduced a medium-term expenditure framework focusing on forward estimates, macroeconomic planning, and portfolio budgeting. Key similarities in the PEM reforms of both countries include increased transparency, devolution, contestability, and commitment to fiscal discipline.
This document outlines a course on public finance. It begins by defining public finance and the public finance cycle. It then discusses the formulation of fiscal policy and the generation of revenue through taxation and other sources. It describes the various types of taxes and revenues. It also covers government expenditures through the national and local budget process. Other topics include public borrowing, budget accountability, and the role of the Commission on Audit in ensuring accountability.
Financial Administration Bangladesh Chapter 5Arif Hasan
This document provides an overview of fiscal policy and administration in Bangladesh. It discusses the functions of the Ministry of Finance, which oversees financial institutions and plans public expenditure policies. It also describes fiscal policy tools like taxation, government spending, and borrowing that influence macroeconomic variables. The effects of fiscal stances like expansionary and contractionary policy on aggregate demand, employment and inflation are summarized. Methods of funding government expenditure through taxation, borrowing, prior surpluses or asset sales are also outlined.
Fiscal policy and government budgets are important tools that governments use to influence economic activity and promote growth. A government's budget determines how much money it expects to receive in revenues and how much it will spend on goods and services. The Nigerian constitution and laws establish the legal framework for budgeting, giving the National Assembly authority over the budget process. This document proposes a Fiscal Responsibility Index to benchmark and assess the fiscal performance of government ministries, departments, and agencies in Nigeria based on their adherence to budget credibility, comprehensiveness, policy-based budgeting, implementation, accounting, and auditing practices. The goal is to support fiscal discipline and the efficient use of public funds.
The document discusses key concepts related to government budgets and deficits. It defines a government budget as an annual statement of estimated receipts and expenditures. The objectives of a budget include managing resources, reducing inequality, and achieving economic stability. Budgets have two main components - revenue and capital. Receipts are classified as revenue (e.g. taxes) or capital (e.g. borrowings), and expenditures are classified as revenue (e.g. salaries) or capital (e.g. infrastructure). Deficit measures include the revenue deficit, fiscal deficit, and primary deficit, which refer to excesses of expenditures over receipts from different sources.
Distribution and Expenditures of Philippine National BudgetPat Reyes
The document provides an overview of the Philippine national budget process and key details of national budgets from 2011-2016. It discusses how the budget is formulated based on agency estimates and submitted to Congress for approval. It also outlines the budget execution process where funds are released and spent. Major allocations in recent budgets have gone to education, infrastructure, social services, and disaster response. The 2015 budget aimed to fund inclusive development through investments in poverty reduction, jobs, and growth while keeping the fiscal deficit below 2% of GDP.
The document discusses public budgeting systems and expenditures from several perspectives. It defines a budget and explores theories of budgeting. It views the budget as an economic process of allocating resources, a political process of competition for limited resources, and an administrative process for planning, coordination and evaluation. The budget is seen as having an impact on a country's fiscal health and economy. Challenges in developing countries include a lack of practical budgeting theory and the complications of budgeting in conditions of underdevelopment and poverty.
A budget is an estimate of revenues and expenses over a period of time, usually compiled periodically. There are three types of budgets: balanced, surplus, and deficit. A balanced budget occurs when expenditures equal revenues. A surplus budget happens when revenues exceed expenditures. A deficit budget is when expenditures are greater than revenues. Deficit budgets can be further classified as revenue deficit, fiscal deficit, or primary deficit based on the types of revenues and expenditures considered.
The document discusses public budgeting. It defines what a budget is, including that a budget is a plan for how tax revenues will be spent annually. It describes the Budget and Accounting Act of 1921, which created the Bureau of the Budget (now OMB) and GAO. OMB assists the president in budget preparation and analyzes funding requests. The budget cycle and types of budgets like capital, operating, line-item and performance budgets are covered. The document also discusses budget surpluses, deficits, and discretionary vs entitlement spending.
The document discusses the Philippine national budget system, which was established by the Americans during their colonial rule and has largely remained unchanged. It provides definitions and explanations of key budgeting concepts and methods used in the Philippines, including the contents and classification of the national budget, objectives of budget preparation, line item budgeting, performance budgeting, planning programming budgeting system (PPBS), and zero-based budgeting. The system aims to prioritize programs based on government policies and allocate resources accordingly through the annual budget cycle of preparation, legislation, execution, and accountability.
The document discusses fiscal policy and public finance in the Philippines. It describes the government agencies responsible for fiscal administration, including the Department of Finance and bureaus that handle tax collection, treasury, and government corporations. It then discusses how different presidential administrations in the Philippines approached fiscal policy through taxes, spending, and management of fiscal deficits and debt.
The document discusses the national budget of the Philippines and the Department of Budget and Management's (DBM) role in its preparation and oversight. It notes that DBM is mandated to promote efficient use of government resources to achieve socioeconomic goals. It then provides details on the composition and funding amounts of the 2016 national budget, emphasizing spending on infrastructure and program delivery while keeping a fiscal deficit below 2% of GDP. It outlines DBM's budgeting process and priorities of spending within means on key sectors and priority geographic areas in a transparent manner.
A study on Budget deficit AND Its impact on the economy of BangladeshMd Showeb
Government budget deficit is the difference between government revenues and expenditures. Government has different sources of revenues. Major portion of government revenues comes from direct and indirect taxes. Direct taxes come from income and profits of individuals and institutions and indirect taxes come from import duty, supplementary duty and value added tax. It can be put in different way. Direct taxes are the part of economic revenues and incomes of individuals and institutions and indirect taxes are the part of economic transactions in the form of buy, sale, export and import transactions. If government wants accelerate its revenues to meet the growing public expenditures and to reduce the budget deficit without reducing the expenditures of different influential sectors, much efforts should be made to increase economic revenues and income as well as the economic transactions so that the government revenues can meet the growing demand of the economy with the increase in revenues from income tax, import duty, supplementary duty and value added tax. In this regard the concentration of the report is on the management of deficit budget to minimize bad effects and maximize the utilization of funds. Having budget deficit is not a problem at all. The problems lie with the government inefficiency in the management of budget deficit. The evaluation of different reasons behind deficit budget and the evaluation of different bad effects of deficit budget are two crucial parts of our discussion. The impact of budget deficit on the different sectors of the economy is addressed here with relevant information. It is further concentration point of the report to find ways to improve the management performance of the government to achieve different macroeconomic goals with the help of expansion of economic revenues and transactions. The government revenues increase with the increase in economic revenues and economic transactions. The key point of our discussion is government should not decrease the public expenditures as the population is growing. The expenditures on different public sectors have to be increased as the population is growing. But budget deficit should not grow to meet the expenditures as budget deficit has some associated problems with it. For this reason government has to concentrate on accelerating the revenue collection rapidly with the expansion of economic revenues and economic transactions. For this reason government should try to integrate different policies to achieve key macroeconomic goals.
Desempeño de las Reglas fiscales alternativas en Perú análisis Por FMI 2010EMPRESARIOS HACIENDO PAÍS
This chapter assesses the performance of alternative fiscal rules that Peru could adopt, including a basic balance budget rule, an expenditure rule, a structural balance rule, and Peru's existing Fiscal Responsibility and Transparency Law (FRTL) rule. The analysis finds that each rule involves different trade-offs between objectives like sustainability, cyclicality, volatility, and feasibility. A structural balance rule could help limit pro-cyclical impacts but requires extensive economic and institutional prerequisites. Peru's FRTL has proven flexible and modifying its parameters could achieve benefits similar to a structural rule while preserving debt objectives. Overall, the best rule depends on prioritizing fiscal policy goals and no single rule clearly dominates.
The document discusses the public budget process in Palestine. It defines a public budget as a program outlining expected government revenues and expenditures for a fiscal year, which runs from January to December. The budget process involves preparation by ministries, approval by legislative councils, execution by the government, and monitoring. Key parts of the Palestinian public budget include expenditures on salaries, services, and development projects, as well as revenues from taxes, aid, and other sources. Historical budget data from 2009 to 2015 is presented.
governmental and Non profit Accounting chapter 1NeveenJamal
This document discusses the key differences between governmental/not-for-profit (NFP) entities and business enterprises. Governmental and NFP entities operate under different legal and financial constraints compared to businesses. They rely on involuntary taxes and voluntary donations rather than sales. Budgets are legally binding for governments and donor restrictions apply to NFPs. Financial reporting focuses on accountability, compliance with budgets/restrictions, and measuring service efforts rather than profitability. Fund accounting and modified accrual basis are used by governments.
National budget (philippines setting) by Ms. Merafe A. Ebreomerafe ebreo
The document discusses the national budgeting process in the Philippines. It defines what a national budget is as the government's estimate of income and expenditures for the fiscal year. There are two major sources of money for the national budget: revenues and borrowings. The budget process involves four phases - preparation, authorization, implementation, and accountability. The national budget is allocated to fund various government programs and projects, operation of offices, payment of salaries, and debt payments. It is categorized into current operating expenditures, capital outlays, net lending, and debt amortization.
The document discusses the budgetary system and budget process of the Philippine government. It outlines the four phases of the budget cycle: budget preparation, budget legislation, budget execution, and budget accountability. It provides details on the budget preparation phase, including the budget call, stakeholder consultations, agency budget proposals, technical budget hearings, executive review, and presentation to the President. The budget preparation phase ends with the President's submission of the proposed budget to Congress, beginning the budget legislation phase.
Serbia: Road Map for Developing Treasury Functions and Implementing Treasury ...Jean-Marc Lepain
This document provides an overview and roadmap for developing treasury functions and implementing a single treasury account and finance information management system for the Ministry of Finance of Serbia. It discusses key aspects of financial management including legislation, budgeting, budget execution, accounting, financial control, and reporting. It also describes the current budget execution systems and interactions between allocation, expenditure management, and financial planning processes that will need to be coordinated. The treasury specialist aims to help the newly established Serbian treasury understand its new functions and develop in line with international standards.
The document defines key budgeting terms used in the 2023 OECD SBO Survey on Budget Frameworks. It provides concise definitions of over 30 terms including:
- Central Budget Authority, the ministry responsible for budget preparation and allocation.
- Executive's Budget Proposal, the government's comprehensive proposal submitted to parliament for approval.
- Fiscal forecasts, projections of future fiscal aggregates like expenditure and revenue.
- Fiscal rules, numerical parameters set in law to constrain budget aggregates.
The definitions clarify technical budgeting concepts for completing the OECD survey questions.
This document discusses public finance and the role of actuaries. It defines public finance as the economics of paying for governmental activities and administering those activities. It describes types of government expenditures and sources of funding. Charts show the size of governments and number of governments in the US. The document outlines actuarial principles of statistical frameworks, economic behavior, facts-based analysis, and risk transfer. It proposes actuarial roles in policy evaluation, long-term financing decisions, and advising on costs and benefits of policies, funding, and emerging societal risks.
The budgeting process involves four phases: preparation, authorization, execution, and accountability. During preparation, the Development Budget Coordinating Committee determines economic targets and expenditure levels. Government agencies then prepare their budget estimates. The President submits the proposed budget to Congress, where it undergoes review before becoming law through the General Appropriations Act. The Department of Budget and Management implements the budget through fund releases to agencies and ensures proper allocation and spending of funds.
The document compares public expenditure management (PEM) reforms in New Zealand and Australia. Both countries introduced reforms to improve aggregate fiscal discipline, allocation efficiency, and operational efficiency. New Zealand's reforms included establishing state-owned enterprises, abolishing permanent public sector tenure, enhancing transparency through the Public Finance Act, and the Fiscal Responsibility Act. Australia introduced a medium-term expenditure framework focusing on forward estimates, macroeconomic planning, and portfolio budgeting. Key similarities in the PEM reforms of both countries include increased transparency, devolution, contestability, and commitment to fiscal discipline.
This document outlines a course on public finance. It begins by defining public finance and the public finance cycle. It then discusses the formulation of fiscal policy and the generation of revenue through taxation and other sources. It describes the various types of taxes and revenues. It also covers government expenditures through the national and local budget process. Other topics include public borrowing, budget accountability, and the role of the Commission on Audit in ensuring accountability.
Financial Administration Bangladesh Chapter 5Arif Hasan
This document provides an overview of fiscal policy and administration in Bangladesh. It discusses the functions of the Ministry of Finance, which oversees financial institutions and plans public expenditure policies. It also describes fiscal policy tools like taxation, government spending, and borrowing that influence macroeconomic variables. The effects of fiscal stances like expansionary and contractionary policy on aggregate demand, employment and inflation are summarized. Methods of funding government expenditure through taxation, borrowing, prior surpluses or asset sales are also outlined.
Fiscal policy and government budgets are important tools that governments use to influence economic activity and promote growth. A government's budget determines how much money it expects to receive in revenues and how much it will spend on goods and services. The Nigerian constitution and laws establish the legal framework for budgeting, giving the National Assembly authority over the budget process. This document proposes a Fiscal Responsibility Index to benchmark and assess the fiscal performance of government ministries, departments, and agencies in Nigeria based on their adherence to budget credibility, comprehensiveness, policy-based budgeting, implementation, accounting, and auditing practices. The goal is to support fiscal discipline and the efficient use of public funds.
The document discusses key concepts related to government budgets and deficits. It defines a government budget as an annual statement of estimated receipts and expenditures. The objectives of a budget include managing resources, reducing inequality, and achieving economic stability. Budgets have two main components - revenue and capital. Receipts are classified as revenue (e.g. taxes) or capital (e.g. borrowings), and expenditures are classified as revenue (e.g. salaries) or capital (e.g. infrastructure). Deficit measures include the revenue deficit, fiscal deficit, and primary deficit, which refer to excesses of expenditures over receipts from different sources.
Distribution and Expenditures of Philippine National BudgetPat Reyes
The document provides an overview of the Philippine national budget process and key details of national budgets from 2011-2016. It discusses how the budget is formulated based on agency estimates and submitted to Congress for approval. It also outlines the budget execution process where funds are released and spent. Major allocations in recent budgets have gone to education, infrastructure, social services, and disaster response. The 2015 budget aimed to fund inclusive development through investments in poverty reduction, jobs, and growth while keeping the fiscal deficit below 2% of GDP.
The document discusses public budgeting systems and expenditures from several perspectives. It defines a budget and explores theories of budgeting. It views the budget as an economic process of allocating resources, a political process of competition for limited resources, and an administrative process for planning, coordination and evaluation. The budget is seen as having an impact on a country's fiscal health and economy. Challenges in developing countries include a lack of practical budgeting theory and the complications of budgeting in conditions of underdevelopment and poverty.
A budget is an estimate of revenues and expenses over a period of time, usually compiled periodically. There are three types of budgets: balanced, surplus, and deficit. A balanced budget occurs when expenditures equal revenues. A surplus budget happens when revenues exceed expenditures. A deficit budget is when expenditures are greater than revenues. Deficit budgets can be further classified as revenue deficit, fiscal deficit, or primary deficit based on the types of revenues and expenditures considered.
The document discusses public budgeting. It defines what a budget is, including that a budget is a plan for how tax revenues will be spent annually. It describes the Budget and Accounting Act of 1921, which created the Bureau of the Budget (now OMB) and GAO. OMB assists the president in budget preparation and analyzes funding requests. The budget cycle and types of budgets like capital, operating, line-item and performance budgets are covered. The document also discusses budget surpluses, deficits, and discretionary vs entitlement spending.
The document discusses the Philippine national budget system, which was established by the Americans during their colonial rule and has largely remained unchanged. It provides definitions and explanations of key budgeting concepts and methods used in the Philippines, including the contents and classification of the national budget, objectives of budget preparation, line item budgeting, performance budgeting, planning programming budgeting system (PPBS), and zero-based budgeting. The system aims to prioritize programs based on government policies and allocate resources accordingly through the annual budget cycle of preparation, legislation, execution, and accountability.
The document discusses fiscal policy and public finance in the Philippines. It describes the government agencies responsible for fiscal administration, including the Department of Finance and bureaus that handle tax collection, treasury, and government corporations. It then discusses how different presidential administrations in the Philippines approached fiscal policy through taxes, spending, and management of fiscal deficits and debt.
The document discusses the national budget of the Philippines and the Department of Budget and Management's (DBM) role in its preparation and oversight. It notes that DBM is mandated to promote efficient use of government resources to achieve socioeconomic goals. It then provides details on the composition and funding amounts of the 2016 national budget, emphasizing spending on infrastructure and program delivery while keeping a fiscal deficit below 2% of GDP. It outlines DBM's budgeting process and priorities of spending within means on key sectors and priority geographic areas in a transparent manner.
A study on Budget deficit AND Its impact on the economy of BangladeshMd Showeb
Government budget deficit is the difference between government revenues and expenditures. Government has different sources of revenues. Major portion of government revenues comes from direct and indirect taxes. Direct taxes come from income and profits of individuals and institutions and indirect taxes come from import duty, supplementary duty and value added tax. It can be put in different way. Direct taxes are the part of economic revenues and incomes of individuals and institutions and indirect taxes are the part of economic transactions in the form of buy, sale, export and import transactions. If government wants accelerate its revenues to meet the growing public expenditures and to reduce the budget deficit without reducing the expenditures of different influential sectors, much efforts should be made to increase economic revenues and income as well as the economic transactions so that the government revenues can meet the growing demand of the economy with the increase in revenues from income tax, import duty, supplementary duty and value added tax. In this regard the concentration of the report is on the management of deficit budget to minimize bad effects and maximize the utilization of funds. Having budget deficit is not a problem at all. The problems lie with the government inefficiency in the management of budget deficit. The evaluation of different reasons behind deficit budget and the evaluation of different bad effects of deficit budget are two crucial parts of our discussion. The impact of budget deficit on the different sectors of the economy is addressed here with relevant information. It is further concentration point of the report to find ways to improve the management performance of the government to achieve different macroeconomic goals with the help of expansion of economic revenues and transactions. The government revenues increase with the increase in economic revenues and economic transactions. The key point of our discussion is government should not decrease the public expenditures as the population is growing. The expenditures on different public sectors have to be increased as the population is growing. But budget deficit should not grow to meet the expenditures as budget deficit has some associated problems with it. For this reason government has to concentrate on accelerating the revenue collection rapidly with the expansion of economic revenues and economic transactions. For this reason government should try to integrate different policies to achieve key macroeconomic goals.
Desempeño de las Reglas fiscales alternativas en Perú análisis Por FMI 2010EMPRESARIOS HACIENDO PAÍS
This chapter assesses the performance of alternative fiscal rules that Peru could adopt, including a basic balance budget rule, an expenditure rule, a structural balance rule, and Peru's existing Fiscal Responsibility and Transparency Law (FRTL) rule. The analysis finds that each rule involves different trade-offs between objectives like sustainability, cyclicality, volatility, and feasibility. A structural balance rule could help limit pro-cyclical impacts but requires extensive economic and institutional prerequisites. Peru's FRTL has proven flexible and modifying its parameters could achieve benefits similar to a structural rule while preserving debt objectives. Overall, the best rule depends on prioritizing fiscal policy goals and no single rule clearly dominates.
The document discusses the public budget process in Palestine. It defines a public budget as a program outlining expected government revenues and expenditures for a fiscal year, which runs from January to December. The budget process involves preparation by ministries, approval by legislative councils, execution by the government, and monitoring. Key parts of the Palestinian public budget include expenditures on salaries, services, and development projects, as well as revenues from taxes, aid, and other sources. Historical budget data from 2009 to 2015 is presented.
governmental and Non profit Accounting chapter 1NeveenJamal
This document discusses the key differences between governmental/not-for-profit (NFP) entities and business enterprises. Governmental and NFP entities operate under different legal and financial constraints compared to businesses. They rely on involuntary taxes and voluntary donations rather than sales. Budgets are legally binding for governments and donor restrictions apply to NFPs. Financial reporting focuses on accountability, compliance with budgets/restrictions, and measuring service efforts rather than profitability. Fund accounting and modified accrual basis are used by governments.
National budget (philippines setting) by Ms. Merafe A. Ebreomerafe ebreo
The document discusses the national budgeting process in the Philippines. It defines what a national budget is as the government's estimate of income and expenditures for the fiscal year. There are two major sources of money for the national budget: revenues and borrowings. The budget process involves four phases - preparation, authorization, implementation, and accountability. The national budget is allocated to fund various government programs and projects, operation of offices, payment of salaries, and debt payments. It is categorized into current operating expenditures, capital outlays, net lending, and debt amortization.
The document discusses the budgetary system and budget process of the Philippine government. It outlines the four phases of the budget cycle: budget preparation, budget legislation, budget execution, and budget accountability. It provides details on the budget preparation phase, including the budget call, stakeholder consultations, agency budget proposals, technical budget hearings, executive review, and presentation to the President. The budget preparation phase ends with the President's submission of the proposed budget to Congress, beginning the budget legislation phase.
Serbia: Road Map for Developing Treasury Functions and Implementing Treasury ...Jean-Marc Lepain
This document provides an overview and roadmap for developing treasury functions and implementing a single treasury account and finance information management system for the Ministry of Finance of Serbia. It discusses key aspects of financial management including legislation, budgeting, budget execution, accounting, financial control, and reporting. It also describes the current budget execution systems and interactions between allocation, expenditure management, and financial planning processes that will need to be coordinated. The treasury specialist aims to help the newly established Serbian treasury understand its new functions and develop in line with international standards.
The document defines key budgeting terms used in the 2023 OECD SBO Survey on Budget Frameworks. It provides concise definitions of over 30 terms including:
- Central Budget Authority, the ministry responsible for budget preparation and allocation.
- Executive's Budget Proposal, the government's comprehensive proposal submitted to parliament for approval.
- Fiscal forecasts, projections of future fiscal aggregates like expenditure and revenue.
- Fiscal rules, numerical parameters set in law to constrain budget aggregates.
The definitions clarify technical budgeting concepts for completing the OECD survey questions.
The document discusses treasury management and debt management. It covers managing government bank accounts, financial planning and forecasts, debt management, and monitoring borrowings by sub-national governments. As an example, it summarizes how Kyrgyz built a treasury system after the Soviet Union collapsed, establishing a Treasury Single Account and payment system to enhance fiscal control and cash management.
The document discusses treasury management and debt management. It covers managing government bank accounts, financial planning and forecasts, and debt management. Key points include that the treasury must oversee all central government bank accounts. Financial planning requires preparing annual cash plans, monthly cash forecasts, and in-month estimates. Debt management policies aim to finance budget deficits at lowest cost while maintaining transparency.
The document provides information about public finance and budgeting in Ethiopia. It discusses key concepts like the budget, budgeting process, revenue budget, expenditure budget, budget deficit, and methods of financing the deficit. It also describes the revenue sharing between the central/federal government and regional/state governments in Ethiopia based on the constitution and relevant proclamations. The revenue sources are categorized into central list, regional list, and joint/concurrent list. The budget aims to properly allocate resources, ensure economic growth and stability, and equitable distribution of income and wealth.
The document discusses India's Fiscal Responsibility and Budget Management Act of 2003. It provides background on fiscal responsibility and defines key fiscal terms like fiscal deficit, revenue deficit, primary deficit, and gross fiscal deficit. It outlines the objectives of the Act, which were to increase fiscal transparency, introduce sustainable debt management, and aim for long-term fiscal stability. It also discusses the impact of fiscal policy on issues like inflation, economic growth, and farmers' suicides. Current implementation of the Act aims to gradually reduce the fiscal deficit target to around 2-3% of GDP.
The document discusses fiscal administration and the budget process in the Philippines. It covers:
1) Key aspects of fiscal administration including intergovernmental relations and the roles of agencies like Congress, the Department of Finance, and Commission on Audit.
2) Sources of funds for local governments including internal revenue allotments, shares of national wealth and taxes, and the formulas for allocating these funds.
3) Core budget concepts used by the Philippine government like the one-fund concept, balanced budgeting, and total resource budgeting. It also discusses the annual budget cycle.
The document discusses fiscal administration and the budget process in the Philippines. It covers:
1) Key aspects of fiscal administration including intergovernmental relations and the roles of agencies like Congress, the Department of Finance, and Commission on Audit.
2) Sources of funds for local governments including internal revenue allotments, shares of national wealth and taxes, and the formulas for allocating these funds.
3) Core budget concepts used including the one-fund concept, balanced budgeting, and total resource budgeting. It also discusses the government's surplus budgeting policy.
The document provides an overview of the Treasury Single Account (TSA) system implemented in Nigeria, including:
1) The TSA consolidates all government bank accounts into a centralized account to improve cash management and address issues like lost control over accounts and idle cash.
2) It requires all government revenues be deposited in the TSA to improve transparency and prevent revenue leakage from multiple bank accounts.
3) Advocates say the TSA will increase integrity in public financial management by removing organizational secrecy around finances and ensuring all revenues are deposited in the centralized account.
In modern industrial economies, the budget is the key instrument for the execution of government economic policies. A government budget is often passed by the legislature, & approved by the chief executive-or president. For example, only certain types of revenue may be imposed & collected. Property tax is frequently the basis for municipal & county revenues, while sales tax &/or income tax are the basis for state revenues, & income tax & corporate tax are the basis for national revenues.
The document outlines Zambia's Public Financial Management Reform Strategy for 2019-2022. It discusses reforms in six key areas: 1) Integrated planning and budgeting, 2) Effective internal control for budget execution, 3) Increasing revenue mobilization, 4) Transparent reporting of financial and service delivery performance, 5) Effective external scrutiny of performance, and 6) Moving toward fiscal decentralization. For each area, it discusses the ideal state, current challenges, and strategic reform priorities. The strategy was developed through stakeholder consultations to ensure government ownership of reforms. While the previous reform strategy saw mixed success, achievements like rolling out an integrated financial management system provide a foundation to build on.
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The Organisation of Public Financial Management Architecture by Amal Lahrlid
1. The Organisation of Public Financial Management Architecture
MENA-SBO
Amal Larhlid
Director in Policy and Governance
2. Agenda
•The Role of the Ministry of Finance within Government
•The Organisational Structure of the Ministry of Finance
•Governance of State-Owned Enterprises: a case study from Tunisia
•Conclusions
4. Position of MoF within governmental institutions
Institution
Relationship to MoF
Head of Executive
Provides overall strategic direction for government, setting objectives and priorities. These inform the allocation of resources by the MOF during the budget process.
Other line ministries
Liaise with MoF in budget-setting process. May provide more granular detail on requirements of particular projects or objectives, negotiate (either directly with MoF, or via Cabinet/Secretariat) for greater resource allocations. Responsible for budget execution, internal monitoring of expenditure and performance, and (under true-PBB) reallocation of resources within spending envelope to maximum effect.
SOEs
May be net subsidised by MOF, or net revenue generators. In either case, financial position and forecasts will be incorporated into MOF’s multi-year budgeting. As with line ministries, SOEs will provide MOF with information regarding investment opportunities, funding needs, and performance.
Parliament
Parliament scrutinises the budget and the government accounts (potentially by means of committees). A vote may be required to approve both the budget and the accounts.
Public Accounts Committee (PAC)
Select committee focused on scrutiny of budget execution (including value-for-money criteria). In Westminster model, tends to be chaired by senior Opposition MP, and examines both public accounts and ad hoc value-for-money reports produced by the SAI. In practice, this can mean a wide remit, ranging from tax avoidance to transportation infrastructure projects. The PAC can call on external experts to support its work, and request that ministers and civil servants appear before it to provide an account of spending and outcomes.
SAI
Responsible for audit of government accounts created by individual line ministries, and by MOF for government as a whole. May also audit performance information, and investigate questions of value-for-money (either at own discretion, or in accordance with direction from executive or Parliament).
MOF
Other
Ministries
Line
Head of Executive
Parliament
PAC
SAI
SOEs
5. MOF/secretariat coordination and assignment of responsibilities
Strategic planning should be fully integrated with the budget, with the MTEF representing a combined medium-term government-wide strategic plan and budget.
In this context, the organizational integration of strategic planning and budgeting becomes very important.
There are basically two models for achieving this:
•MOF assumes responsibility for strategic planning
•Strategic planning remains the responsibility of the Secretariat, but MOF and Secretariat cooperate closely to prevent fragmentation.
It is important to avoid a situation in which major capital projects are handled exclusively by the Secretariat, with MOF playing no role in analysing them and advising on their affordability.
A number of MENA countries have government Secretariat-type organizations, which support the Cabinet and executive leadership.
If planning is the role of the Secretariat, and budgeting the role of MOF, this can institutionalize the lack of integration of budgeting and strategic planning.
01
02
03
01
02
03
The lack of coordination between secretariat and MOF is a challenge for the integration between strategic planning and budgeting
The organisational integration and assignment of responsibilities model are critical
MOF should take central role in handling major capital projects proposals
7. Organisational structure and key MOF functions (1 of 2) It is essential to ensure that the MOF organizational structure incorporates all of the key functions associated with the budget and financial management cycle. Below is an indicative structure incorporating these key functions within six divisions:
MOF
Macro-Fiscal Unit
Budget Preparation
Budget Execution
Treasury
Accounting & Reporting
Tax Policy
SOE Unit
Divisions
Functions of the division
Macro-fiscal unit
Policy on debt, the deficit and level of savings from resource revenues; estimation of aggregate expenditure ceiling; macroeconomic and fiscal projections.
Budget preparation
Determination of budget allocations to each ministry; preparation of detailed budget for submission to political leadership, including all budget documents. In countries which have developed spending review systems, the Budget Preparation division will typically incorporate a Spending Review Unit.
Budget execution
Release of budget funds to spending ministries; ensure that spending ministries implement the budget as planned; ensure compliance with financial management regulations; handle budget transfer (virement) requests.
Treasury
Cash planning and management; management of government banking (e.g. Treasury Single Account); short-term borrowings and funds investment (if necessary) for liquidity purposes (i.e. to manage within-year mismatch of revenue and expenditure flows).
Accounting and reporting
Recording of government revenues, expenditures, liabilities and assets; provision to Budget Execution division of within-year reports on budget expenditures and revenues; preparation of financial reports. Accounting policy (see next page for further discussion on this).
Tax Policy
Recommending tax policy and legislation to government. No responsibility for the assessment and collection of taxes (“tax administration”), which would be the responsibility of a separate Tax Authority .
State owned enterprise unit
Policy on, and analysis of, all state owned enterprise requests for budget funding; monitoring of financial position (including liabilities) of state owned enterprises and associated potential financial risk to government; general policy on state owned enterprises.
8. Organisational structure and key MOF functions (2 of 2)
Divisions
Functions of the division
Accounting policy division
In addition to the Accounting and Reporting division – in which case the latter would restrict itself to accounting operations.
Intergovernmental financial relations
In federal systems, the national MOF would typically also have a division covering Intergovernmental Financial Relations, the prime responsibility of which would be the management of financial transfers from the national to sub-national governments.
Market regulation
While in many countries regulators sit outside MoF, market regulation (in particular, regulation of the finance sector) is highly relevant to macroeconomic stability and is commonly overseen by personnel within MoF,
International financial liaison
Responsible for ongoing financial relationships/ negotiations with other countries, and with supranational bodies such as IMF, World Bank, and the EU.
(Other) additional divisions
In addition to the above principle divisions of the MOF, it may sometimes be appropriate to create small additional units such as a Procurement Unit, which would set procurement policies and monitor the procurement practices of spending ministries.
Associated organisations
Functions of the associated organisations
Debt management agency
This agency would be responsible for issuing long-term government debt (defined as debt of more than one year maturity, and excluding short-term debt issued for liquidity management purposes, which is the responsibility of the MOF Treasury). It would also actively manage the debt portfolio. In many countries, the Debt Management Agency would also undertake any state owned enterprise borrowings on their behalf.
Sovereign wealth fund
The organization which manages the financial assets of countries with large investable resources, as is commonly the case in GCC countries.
Civil service pension authority
This agency managers the civil service pension system.
The Tax Authority
The primary responsibility of the Tax Authority is to administer the major taxes levied by the government (e.g. personal income taxes; corporate taxes and sales taxes). The Tax Authority would not have responsibility for tax policy, which is part of the MOF .
The indicative organizational structure may legitimately be varied in certain respects, depending upon national circumstances. For example:
In addition to the core MOF functions which should be reflected in the divisions of the MOF itself, there are a number of associated functions which are typically associated with, but not part of, MOF. Typically, the organizations which manage these functions report to the Minister of Finance or equivalent leader, even though they are not part of MOF. The above listed are the most important such organizations.
01
02
9. Real-world examples of MoF structure
US Treasury Department
The Office of Management and Budget (part of the Executive Office) plays a key role in budget preparation/execution.
Budget Preparation
Budget Execution
Treasury
Accounting & Reporting
Tax Policy
Macro-Fiscal Unit
Bureau of the Fiscal Service
Unlike most other countries, the US legislature has considerable influence over the budgeting process.
10. Real-world examples of MoF structure
Swedish Ministry of Finance
Budget Preparation
Budget Execution
Treasury
Accounting & Reporting
Tax Policy
SOE Unit
Macro-Fiscal Unit
MOF
Economic Affairs
Budget
Tax and Customs
Financial Markets
International
Municipalities and State Ownership
Municipalities
SOE governance
SOE management
National Debt Office
National Financial Management Authority
11. Budget Preparation
Budget Execution
Real-world examples of MoF structure
UK Treasury
HM Treasury
Corporate Centre
Strategy, Planning & Budget
Ministerial & Communications
Treasury Legal Advisors
International/ EU
Economics
Fiscal
Public Spending
Public Services
Financial Stability
Financial Services
Financial Regulations & Market Services
Business & International Tax
Personal Tax, Welfare & Pensions
Enterprise & Growth
Tax Policy
Macro- Fiscal Unit
Accounting & Reporting
Treasury
13. Governance of State-Owned Enterprises and Public Bodies in Tunisia Background and Context
•50% increase in government expenditures between 2010 and 2013
•In the context of subsequent spending restraint, there has been renewed focus on management of public finances, budgetary transparency, and performance budgeting
•IMF Technical Assistance was requested to evaluate the progress of these PFM reforms, identify deficiencies, and make recommendations
•The mission focused on:
•Budget framework and preparation
•Closure of accounts and financial reporting
•Oversight of state-owned enterprises and organisations, which constitute an increasing burden on state finances
14. Governance of State-Owned Enterprises and Public Bodies in Tunisia Types of State-Owned Enterprise and Public Bodies
State-Owned Enterprises
Public Bodies
Administrative Public Bodies
Public Health Bodies
Non- Administrative Public Bodies
Non- Administrative Public Bodies
Wholly State- Owned Companies
Banks and insurance companies (directly and indirectly capitalised by the State)
Companies majority- owned by the State, local government, and/ or other public bodies
15. Governance of State-Owned Enterprises and Public Bodies in Tunisia Structure of Governance
Ministry of Economy and Finance
President’s Office
Line Ministers
Technical Committee on Privatisation
Court of Auditors
Commission for the Restructuring of Publicly-Supported Enterprises (CAREPP)
DG of Public Bodies
General Committee of Budget Administration
DG of SOE Restructuring
SOE Productivity Monitoring Unit
SOE Organisational Unit
DG of Privatisation
DG of Public – Private Partnerships
State-Owned Enterprises
& Public Bodies
16. Governance of State-Owned Enterprises and Public Bodies in Tunisia State-Owned Enterprises: Trends in Salaries, Subsidies and Investment
0
1000
2000
3000
4000
5000
6000
7000
Salaires
Subventions de l'Etat
Aides pour l'investissement
2010
2011
2012
Source: MEF, Rapport sur la position financière de 28 entreprises publiques 2010-2012
17. Governance of State-Owned Enterprises and Public Bodies in Tunisia Problems and Recommendations
Lack of clear criteria for differentiating public enterprises from other administrative/ non- administrative agencies
Legal Framework and Categories of
State-Owned Enterprises and Public Bodies
Diverse categories and legal frameworks for SOEs and
Public Bodies
Consolidation and simplification of legal framework
Simplify and standardise personnel grades/salaries
Regroup into two categories: administrative bodies and commercial/industrial companies
18. Governance of State-Owned Enterprises and Public Bodies in Tunisia Problems and Recommendations
Multiple state bodies tasked with oversight of SOEs and public bodies
State-Owned Enterprises and Public Bodies:
Institutional Landscape
Equip the DG of Public Bodies (MoF) with power to monitor entire sector, and responsibility for annual financial analysis
Introduce requirement for information on SOEs and other public bodies in MoF memos to rest of government
Improve coordination between existing actors involved in governance
Lack of coordination
Overlapping duties and increased costs
Prescriptive governance framework limits operational independence of SOEs
Contractual formalisation of relationships between State and public bodies (particularly state- supported banks)
Create a single entity responsible for oversight of public bodies within MoF
19. Governance of State-Owned Enterprises and Public Bodies in Tunisia Problems and Recommendations
Financial Performance
and Risk Management
Improved monitoring of SOEs’ financial performance (particularly signs of financial distress)
Introduce macroeconomic and budgetary risk analysis into public bodies’ annual reporting
Clarify spending and delivery responsibilities between State and public bodies at a project-by-project level
Absence of reliable management information
Lack of visibility of overall level of government subsidy (including implicit guarantees)
Failure to incorporate public bodies into budget forecasts
Develop multi-year strategy and budget for public bodies, which can be integrated into medium-term expense planning at the State level
Produce report aggregating all forms of subsidy to public bodies
Failure to assess impact of macroeconomic factors on financial position of public bodies
20. Governance of State-Owned Enterprises and Public Bodies: Lessons from around the world Challenges…
Scale and diversity of SOE sector
Conflicting imperatives: generate cash or deliver social programs?
Overall level of government subsidy (transfers, guarantees, equity) often unclear
Cash-generating parts of business/sector may mask true scale of transfers
Inadequate appreciation of risk exposure by SOEs and/or by MoF
Low visibility of contingent liabilities
21. Governance of State-Owned Enterprises and Public Bodies: Lessons from around the world Challenges… and solutions
Scale and diversity of SOE sector
Conflicting imperatives: generate cash or deliver social programs?
Simplification of SOE legislation/ reduction in range of legal forms
Shared services for SOE sector to improve quality of information available to MoF
Dedicated SOE Unit within MoF
Overall level of government subsidy (transfers, guarantees, equity) often unclear
Cash-generating parts of business/sector may mask true scale of transfers
Inadequate appreciation of risk exposure by SOEs and/or by MoF
Privatisation
Low visibility of contingent liabilities
Align SOE planning, budgeting and reporting calendar with MoF
Contractual basis for MoF subsidies/ guarantees – defining SOE obligations
Consolidation of SOEs/integration into departments
22. Governance of State-Owned Enterprises and Public Bodies: Lessons from around the world The Role of the SOE Unit
Dedicated SOE Unit within MoF
SOEs
•Monitor financial performance, budgets, business plans, sectoral trends
•Advise on investment, diversification, restructuring, divestment
•Provide information on level of subsidy, dividends payable, fiscal risks
•Identify and screen potential directors
•Promote best practice corporate governance
Monitoring and analysis, not control
MoF
•Financial performance: liquidity, profitability, leverage, market value, solvency
•Debt structure (including timing of payments) and contingent liabilities
•Delivery of social programs (social performance)
Reporting: for individual SOEs and sector as a whole
24. Critical Success Factors for Ministry of Finance reform
Section 2 – Executive Summary
1
2
3
4
5
6
Set a clear and well articulated vision
Vision
Commitment
Stakeholders and Capacity
Timeline (Realistic)
Technology is an Enabler
Flexibility and Adaptability
Absolute political commitment with stick and carrot
Take all stakeholders with you and be absolutely sure they have the capacity to deliver
Be completely realistic in scope and timelines this is a journey without an end with continuous improvement
Technology is fundamental but alone will fail
Learn and adapt – be ready to change your plans to meet new challenges and incorporate new ideas
25. Thank you
Amal Larhlid
Director Policy and Governance
PwC London
amal.larhlid@uk.pwc.com
Office: +442078040339 |
Mobile: +447725632499