Finance function in line ministries - Jón Blöndal, OECDOECD Governance
This presentation was made by Jón Blöndal, OECD, at the 12th Annual Meeting of OECD-Asian Senior Budget Officials held in Bangkok, Thailand, on 15-16 December 2016
Fiscal decentralisation and health sector financing formulae (lao pdr)Jean-Marc Lepain
This document discusses options for developing a health sector financing formula to accompany fiscal decentralization reforms in Laos. It reviews 6 potential approaches and recommends an interim formula based on non-wage expenditures and health worker numbers. This interim formula would be developed over 1-2 years into a full health financing formula incorporating incentives and program-level funding once additional health policy issues are addressed. The formula aims to equalize funding while ensuring sufficient budgets for service delivery across diverse regions.
The document discusses issues with Yemen's national budget, including a lack of integration between different budget components (operational, investment, subsidies, economic entities). It focuses on problems with the investment and economic entities budgets. The investment budget lacks feasibility studies and realistic costing, burdening future budgets. The economic entities budget treats state-owned enterprises as a single entity, obscuring deficits and risks. The document advocates separating commercial SOEs from budget entities and integrating all components into a unified, sustainable budget.
Cambodia, decentralization and deconcentration; progress and issues, august 2011Jean-Marc Lepain
The document summarizes the progress and issues regarding decentralization and deconcentration reforms in Cambodia. It discusses several key points: 1) The reforms aim to redefine powers and responsibilities at the provincial, district, and municipal levels but have focused more on deconcentration than fiscal decentralization. 2) There are inconsistencies between laws governing sub-national administration and public finance that need to be resolved. 3) While expenditures are decentralized, budgeting remains centralized, and the reforms have focused more on deconcentration than decentralization of service delivery. Revising expenditure and revenue assignments according to responsibility transfers is still needed.
Yemen public financial management reforms: Background and way forwardJean-Marc Lepain
The document summarizes the background and issues with PFM reforms in Yemen. Key points include:
- Past PFM reform plans from 2005-2008 focused on an FMIS but failed to address broader budget credibility issues.
- A 2008 PEFA assessment found continued lack of budget credibility and weak PFM functions despite reform efforts.
- The new 2014-2015 reform plan aims to focus on restoring budget credibility and fiscal sustainability as pressing short-term priorities, while more ambitious long-term reforms require conditions like an elected government.
- PFM issues are closely tied to Yemen's deteriorating macroeconomic situation including heavy reliance on declining oil revenues and unsustainable subsidies. Comprehensive structural reforms are needed alongside any financial bail
From the medium term fiscal frameworkto ministries' ceilingsJean-Marc Lepain
This document discusses the methodology for constructing medium-term expenditure ceilings and allocating budgets to ministries in Brunei. It begins by explaining the purpose of medium-term ceilings, which is to link fiscal and sectoral policies, prioritize spending, and conduct fiscal adjustments in an orderly manner. It then covers the methodology, including setting aggregate and sectoral fiscal targets, disaggregating budgets to ministries, and addressing issues like time horizons, coverage, and managing uncertainty. The document concludes by emphasizing the importance of understanding baselines versus ceilings and the demands this system places on both ministries and the Ministry of Finance.
Cambodia: Education Sector; A Short Fiscal AssessmentJean-Marc Lepain
The education sector in Cambodia has made progress but faces ongoing challenges. Enrollment has increased at primary and tertiary levels, and teacher qualifications have improved. However, education spending remains low, class sizes are still very large, dropout and repetition rates are high, and textbook provision is insufficient. Improving the education system will require increasing spending, training more teachers, expanding early education, reducing family costs, and improving performance incentives. While decentralization efforts have helped, school budgets are not always well-matched to needs between rural and urban areas. Addressing structural issues like these will require mobilizing more resources to close financing gaps.
Cambodia; assessing progress in public finance management reform july 2011Jean-Marc Lepain
The document summarizes Cambodia's progress in public financial management reforms since 2001. It outlines the following key points:
1) Early reform efforts from 2001-2004 had limited impact, but helped raise awareness of the need for PFM reform.
2) A new reform program was launched in 2005 focused on four platforms: budget credibility, financial accountability, budget policy linkages, and performance accountability.
3) Implementation of the first platform focusing on budget credibility from 2005-2009 was highly successful and established reliable budget execution and credibility.
Finance function in line ministries - Jón Blöndal, OECDOECD Governance
This presentation was made by Jón Blöndal, OECD, at the 12th Annual Meeting of OECD-Asian Senior Budget Officials held in Bangkok, Thailand, on 15-16 December 2016
Fiscal decentralisation and health sector financing formulae (lao pdr)Jean-Marc Lepain
This document discusses options for developing a health sector financing formula to accompany fiscal decentralization reforms in Laos. It reviews 6 potential approaches and recommends an interim formula based on non-wage expenditures and health worker numbers. This interim formula would be developed over 1-2 years into a full health financing formula incorporating incentives and program-level funding once additional health policy issues are addressed. The formula aims to equalize funding while ensuring sufficient budgets for service delivery across diverse regions.
The document discusses issues with Yemen's national budget, including a lack of integration between different budget components (operational, investment, subsidies, economic entities). It focuses on problems with the investment and economic entities budgets. The investment budget lacks feasibility studies and realistic costing, burdening future budgets. The economic entities budget treats state-owned enterprises as a single entity, obscuring deficits and risks. The document advocates separating commercial SOEs from budget entities and integrating all components into a unified, sustainable budget.
Cambodia, decentralization and deconcentration; progress and issues, august 2011Jean-Marc Lepain
The document summarizes the progress and issues regarding decentralization and deconcentration reforms in Cambodia. It discusses several key points: 1) The reforms aim to redefine powers and responsibilities at the provincial, district, and municipal levels but have focused more on deconcentration than fiscal decentralization. 2) There are inconsistencies between laws governing sub-national administration and public finance that need to be resolved. 3) While expenditures are decentralized, budgeting remains centralized, and the reforms have focused more on deconcentration than decentralization of service delivery. Revising expenditure and revenue assignments according to responsibility transfers is still needed.
Yemen public financial management reforms: Background and way forwardJean-Marc Lepain
The document summarizes the background and issues with PFM reforms in Yemen. Key points include:
- Past PFM reform plans from 2005-2008 focused on an FMIS but failed to address broader budget credibility issues.
- A 2008 PEFA assessment found continued lack of budget credibility and weak PFM functions despite reform efforts.
- The new 2014-2015 reform plan aims to focus on restoring budget credibility and fiscal sustainability as pressing short-term priorities, while more ambitious long-term reforms require conditions like an elected government.
- PFM issues are closely tied to Yemen's deteriorating macroeconomic situation including heavy reliance on declining oil revenues and unsustainable subsidies. Comprehensive structural reforms are needed alongside any financial bail
From the medium term fiscal frameworkto ministries' ceilingsJean-Marc Lepain
This document discusses the methodology for constructing medium-term expenditure ceilings and allocating budgets to ministries in Brunei. It begins by explaining the purpose of medium-term ceilings, which is to link fiscal and sectoral policies, prioritize spending, and conduct fiscal adjustments in an orderly manner. It then covers the methodology, including setting aggregate and sectoral fiscal targets, disaggregating budgets to ministries, and addressing issues like time horizons, coverage, and managing uncertainty. The document concludes by emphasizing the importance of understanding baselines versus ceilings and the demands this system places on both ministries and the Ministry of Finance.
Cambodia: Education Sector; A Short Fiscal AssessmentJean-Marc Lepain
The education sector in Cambodia has made progress but faces ongoing challenges. Enrollment has increased at primary and tertiary levels, and teacher qualifications have improved. However, education spending remains low, class sizes are still very large, dropout and repetition rates are high, and textbook provision is insufficient. Improving the education system will require increasing spending, training more teachers, expanding early education, reducing family costs, and improving performance incentives. While decentralization efforts have helped, school budgets are not always well-matched to needs between rural and urban areas. Addressing structural issues like these will require mobilizing more resources to close financing gaps.
Cambodia; assessing progress in public finance management reform july 2011Jean-Marc Lepain
The document summarizes Cambodia's progress in public financial management reforms since 2001. It outlines the following key points:
1) Early reform efforts from 2001-2004 had limited impact, but helped raise awareness of the need for PFM reform.
2) A new reform program was launched in 2005 focused on four platforms: budget credibility, financial accountability, budget policy linkages, and performance accountability.
3) Implementation of the first platform focusing on budget credibility from 2005-2009 was highly successful and established reliable budget execution and credibility.
This document provides a concept note for updating Yemen's 2005 PFM (public financial management) reform action plan. It outlines the need to develop a new, consolidated action plan to coordinate PFM reforms and donor assistance. The document discusses weaknesses in previous plans and outlines recommendations for the structure and management of an updated action plan. Key points include dividing the new plan into emergency and consolidation phases, focusing on budget credibility, streamlining budget execution, accountability, and fiscal decentralization. The document also recommends establishing management structures like steering committees and a PFM reform secretariat to oversee plan implementation.
Punjab resource management programme; intervention in finance departmentJean-Marc Lepain
The document summarizes interventions for Punjab's finance department. It outlines 3 areas of focus: [1] fiscal sustainability and debt management, [2] budget execution and reporting, and [3] organizational strengthening. Key activities include implementing a revenue forecasting model, cash management planning, debt management strategy, and strengthening budget processes and IT systems like SAP to integrate planning and reporting. The overall goal is to improve resource management, budget credibility, and move from reactive to proactive fiscal management.
Laos: Evaluation of the Impact of Budget Norms on Budget Equalization Needs (...Jean-Marc Lepain
This document evaluates the macro-fiscal impact of introducing budget norms and equalizing funding needs across Lao PDR's general budget. It finds that disparities in per capita funding between provinces can reach 300% in some sectors and are not linked to objective criteria. Introducing budget norms over 6 years will close the initial 4.78% funding gap from equalization at less than 1% of the budget annually. However, absorbing increased budgets will require careful planning and monitoring to build absorption capacity in provinces. Budget norms face challenges from inaccurate provincial spending data and could require budget formulation and execution reforms. A phased-in 3-step implementation plan over 6 years is recommended.
PowerPoint presentation of 10 Principles of Budgetary Governance including background, consultation process and key contributions. The principles are currently being considered as a draft Recommendation of the OECD Council, underpinning their importance for good governance and inclusive growth.
For further information, please visit: www.oecd.org/governance/principles-budgetary-governance.htm
PFM is concerned with how governments secure and use resources effectively through laws, organizations, systems and procedures. While PFM focuses on expenditure management and public budgeting, it also encompasses taxation, borrowing, debt management, and other areas of public sector governance. Good PFM systems contribute to macroeconomic stability, aligning resources with priorities, efficiency, and transparency and accountability. Key challenges to PFM reform include informal rules dominating over formal processes and a focus on technical solutions rather than strengthening institutions.
Principles of budgetary governance - Ronnie Downes, OECDOECD Governance
This presentation was made by Ronnie Downes, OECD, at the 10th OECD-Asian Senior Budget Officials Annual Meeting held in Bangkok, Thailand, on 18-19 December 2014.
Financial and Operating Plan - A Tool for Strategic Municipal Investment and ...Ravikant Joshi
This PPT delivered in a course organised by Administrative Staff College of India - Hyderabad explains Financial and Operating Plan and how to prepare it and used it as a tool for strategic municipal investment and financial planning
The document discusses different budgeting methods:
1) Incremental budgeting vs zero-based budgeting, with incremental being simpler but less innovative, while zero-based requires justifying all costs but is complex.
2) Top-down budgeting sets constraints from high levels but risks inaccuracies, while bottom-up involves staff but risks exaggeration.
3) A mixed approach using elements of different methods can balance involvement with oversight. Zero-based budgeting may work for selective areas to drive efficiency.
Medium-term Expenditure Frameworks (MTEF) by Ronnie Downes OECD Governance
Presentation by Ronnie Downes 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
Macro fiscal model for the costing of education sector budget norms (laos 2009)Jean-Marc Lepain
This document summarizes the costing of education sector budget norms based on the Education Sector Development Framework model. It finds that introducing the norms would increase non-wage education expenditures to 23% of the budget, though growth projections may be unrealistic. It recommends that the Ministry of Education provide a revised implementation plan with realistic enrollment projections and that the Ministry of Finance prepare a matching fiscal envelope.
OECD, 35th Meeting of Senior Budget Officials - Lars Ostergaard - DenmarkOECD Governance
This presentation by Lars Ostergaard, Denmark, was made at the 35th Meeting of Senior Budget Officials held in Berlin on 12-13 June 2014. Find more information at http://www.oecd.org/gov/budgeting/35thannualmeetingofoecdseniorbudgetofficialssboberlingermany12-13june2014.htm
This document provides guidance on supporting decentralization and deconcentration processes. It outlines a reading grid using public financial management as a lens to understand key decentralization processes. The public financial management cycle includes strategic planning, budget preparation, budget execution, accounting and monitoring, reporting and audit, and policy review. This reading grid can help development partners navigate the complex topic of decentralization. Where conditions allow, sector budget support is proposed as an effective aid delivery modality that is aligned with national systems and promotes country ownership.
APPLICATION OF MEDIUM TERM EXPENDITURE FRAMEWORK- A CASE STUDY OF TAMIL NADUSultan Odin
This document discusses the application of Medium Term Expenditure Framework (MTEF) in Tamil Nadu, India. It examines MTEF in the health and education sectors of Tamil Nadu. In the health sector, the MTEF developed bottom-up cost estimates for carrying out existing and new policies, which were then reconciled with available public health expenditure. A similar process was followed for the education sector. The analysis found gaps between required funding levels estimated by the MTEF and actual resource availability. Policy recommendations include regularly conducting MTEF, strengthening monitoring and evaluation, and improving coordination between departments.
This document discusses strengthening public investment management. It notes there are varying definitions of public investment across countries. There is renewed global attention on ensuring efficiency of public spending in light of fiscal stimulus plans and uncertain growth. However, increased government investment does not always translate to productive assets due to issues like project delays. Proper public investment management is complex due to factors such as localized benefits, multi-year timelines, and involvement of both public and private sectors. Reform requires a tailored strategy that strengthens key steps in the project cycle in a carefully sequenced manner, while balancing improved appraisal and implementation. The World Bank's agenda aims to provide analytics, tools, policy dialogue and operational assistance to support better public investment management.
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.
This document provides a concept note for updating Yemen's 2005 PFM (public financial management) reform action plan. It outlines the need to develop a new, consolidated action plan to coordinate PFM reforms and donor assistance. The document discusses weaknesses in previous plans and outlines recommendations for the structure and management of an updated action plan. Key points include dividing the new plan into emergency and consolidation phases, focusing on budget credibility, streamlining budget execution, accountability, and fiscal decentralization. The document also recommends establishing management structures like steering committees and a PFM reform secretariat to oversee plan implementation.
Punjab resource management programme; intervention in finance departmentJean-Marc Lepain
The document summarizes interventions for Punjab's finance department. It outlines 3 areas of focus: [1] fiscal sustainability and debt management, [2] budget execution and reporting, and [3] organizational strengthening. Key activities include implementing a revenue forecasting model, cash management planning, debt management strategy, and strengthening budget processes and IT systems like SAP to integrate planning and reporting. The overall goal is to improve resource management, budget credibility, and move from reactive to proactive fiscal management.
Laos: Evaluation of the Impact of Budget Norms on Budget Equalization Needs (...Jean-Marc Lepain
This document evaluates the macro-fiscal impact of introducing budget norms and equalizing funding needs across Lao PDR's general budget. It finds that disparities in per capita funding between provinces can reach 300% in some sectors and are not linked to objective criteria. Introducing budget norms over 6 years will close the initial 4.78% funding gap from equalization at less than 1% of the budget annually. However, absorbing increased budgets will require careful planning and monitoring to build absorption capacity in provinces. Budget norms face challenges from inaccurate provincial spending data and could require budget formulation and execution reforms. A phased-in 3-step implementation plan over 6 years is recommended.
PowerPoint presentation of 10 Principles of Budgetary Governance including background, consultation process and key contributions. The principles are currently being considered as a draft Recommendation of the OECD Council, underpinning their importance for good governance and inclusive growth.
For further information, please visit: www.oecd.org/governance/principles-budgetary-governance.htm
PFM is concerned with how governments secure and use resources effectively through laws, organizations, systems and procedures. While PFM focuses on expenditure management and public budgeting, it also encompasses taxation, borrowing, debt management, and other areas of public sector governance. Good PFM systems contribute to macroeconomic stability, aligning resources with priorities, efficiency, and transparency and accountability. Key challenges to PFM reform include informal rules dominating over formal processes and a focus on technical solutions rather than strengthening institutions.
Principles of budgetary governance - Ronnie Downes, OECDOECD Governance
This presentation was made by Ronnie Downes, OECD, at the 10th OECD-Asian Senior Budget Officials Annual Meeting held in Bangkok, Thailand, on 18-19 December 2014.
Financial and Operating Plan - A Tool for Strategic Municipal Investment and ...Ravikant Joshi
This PPT delivered in a course organised by Administrative Staff College of India - Hyderabad explains Financial and Operating Plan and how to prepare it and used it as a tool for strategic municipal investment and financial planning
The document discusses different budgeting methods:
1) Incremental budgeting vs zero-based budgeting, with incremental being simpler but less innovative, while zero-based requires justifying all costs but is complex.
2) Top-down budgeting sets constraints from high levels but risks inaccuracies, while bottom-up involves staff but risks exaggeration.
3) A mixed approach using elements of different methods can balance involvement with oversight. Zero-based budgeting may work for selective areas to drive efficiency.
Medium-term Expenditure Frameworks (MTEF) by Ronnie Downes OECD Governance
Presentation by Ronnie Downes 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
Macro fiscal model for the costing of education sector budget norms (laos 2009)Jean-Marc Lepain
This document summarizes the costing of education sector budget norms based on the Education Sector Development Framework model. It finds that introducing the norms would increase non-wage education expenditures to 23% of the budget, though growth projections may be unrealistic. It recommends that the Ministry of Education provide a revised implementation plan with realistic enrollment projections and that the Ministry of Finance prepare a matching fiscal envelope.
OECD, 35th Meeting of Senior Budget Officials - Lars Ostergaard - DenmarkOECD Governance
This presentation by Lars Ostergaard, Denmark, was made at the 35th Meeting of Senior Budget Officials held in Berlin on 12-13 June 2014. Find more information at http://www.oecd.org/gov/budgeting/35thannualmeetingofoecdseniorbudgetofficialssboberlingermany12-13june2014.htm
This document provides guidance on supporting decentralization and deconcentration processes. It outlines a reading grid using public financial management as a lens to understand key decentralization processes. The public financial management cycle includes strategic planning, budget preparation, budget execution, accounting and monitoring, reporting and audit, and policy review. This reading grid can help development partners navigate the complex topic of decentralization. Where conditions allow, sector budget support is proposed as an effective aid delivery modality that is aligned with national systems and promotes country ownership.
APPLICATION OF MEDIUM TERM EXPENDITURE FRAMEWORK- A CASE STUDY OF TAMIL NADUSultan Odin
This document discusses the application of Medium Term Expenditure Framework (MTEF) in Tamil Nadu, India. It examines MTEF in the health and education sectors of Tamil Nadu. In the health sector, the MTEF developed bottom-up cost estimates for carrying out existing and new policies, which were then reconciled with available public health expenditure. A similar process was followed for the education sector. The analysis found gaps between required funding levels estimated by the MTEF and actual resource availability. Policy recommendations include regularly conducting MTEF, strengthening monitoring and evaluation, and improving coordination between departments.
This document discusses strengthening public investment management. It notes there are varying definitions of public investment across countries. There is renewed global attention on ensuring efficiency of public spending in light of fiscal stimulus plans and uncertain growth. However, increased government investment does not always translate to productive assets due to issues like project delays. Proper public investment management is complex due to factors such as localized benefits, multi-year timelines, and involvement of both public and private sectors. Reform requires a tailored strategy that strengthens key steps in the project cycle in a carefully sequenced manner, while balancing improved appraisal and implementation. The World Bank's agenda aims to provide analytics, tools, policy dialogue and operational assistance to support better public investment management.
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.
Implementing Spending Reviews: Dilemmas and Choices by Martin Kelleners OECD Governance
Presentation by Martin Kelleners at the 10th annual meeting of the Senior Budget Officials Performance and Results Network held on 24-25 November 2014. Find more information at http://www.oecd.org/gov/budgeting
Medium-term Perspectives on Fiscal Policy and Budgeting by Peter Thurlow OECD Governance
Presentation by Peter Thurlow 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
This presentation was made by Robert Barton, Department of Finance, Australia, at the 14th Annual Meeting of the OECD Senior Budget Officials Performance & Results network held at the OECD Conference Centre, Paris, on 26-27 November 2018
This document provides an overview of fiscal planning and financial management. It defines key terms like fiscal, financial, and planning. It discusses the objectives, importance, and steps of fiscal planning. It also covers budgeting concepts like capital vs revenue expenditure, budget estimates, revised estimates, performance budgeting, and zero-based budgeting. The document is intended to explain the basic concepts and processes involved in fiscal planning and budget preparation for organizations.
Comparative public expenditure management systems.pptxSamuelEyenga1
This PowerPoint was prepared to teach students comparative studies in Public Administration. It is developed from reading literature on comparative Public Expenditure.
OECD Best Practices for Performance budgeting - Ivor Beazley, OECDOECD Governance
This presentation was made by Ivor Beazley, OECD, at the 13th Annual meeting on Performance and Results held at the OECD Headquarters on 16-17 November 2017
The opening balance for October would be $600, which was the projected balance at the end of September.
Cash flow budgets are prepared on a rolling basis, with the closing balance from one period becoming the opening balance for the next period.
This document discusses the budget in health care, its features, principles, classification, and importance. A budget is a plan that uses numerical data to predict the activities of an organization over a period of time. A budget should be flexible and based on the synthesis of past, present and future. the document describes various types of budgets, such as performance budget, rollover, operational, flexible, capital expenditures, strategic, etc. the document also explains the budget planning for college of nursing.
The document presents an overview of different approaches to budgeting in the public sector, including incremental budgeting which is currently used in Northern Ireland. It discusses recommendations from reports to move towards budgeting approaches that more explicitly link budgets to performance and outcomes. Alternative approaches described include zero-based budgeting, priority-based budgeting, and performance-based budgeting. The document provides details on the advantages and disadvantages of different budgeting methods.
Topic 6-Budgeting and budgetary control in the public sector.pdfJumaSule1
Budgeting is an important process in public sector organizations for allocating scarce resources and evaluating performance. There are several approaches to budgeting such as incremental budgeting, programme budgeting, and zero-based budgeting. A medium-term expenditure framework is now widely used to link long-term priorities with annual budgets. The budget process involves formulation of guidelines, preparation of estimates, approval of the overall budget, and monitoring budget execution.
Getting more from Public Services - Jon BLÖNDAL, OECD (English)OECD Governance
Spending reviews are critical re-assessments of existing public expenditures and the policies they are based on in order to improve efficiency, effectiveness and affordability. They have become a standard tool for fiscal consolidation and freeing up funds in many OECD countries after the global economic crisis. The document outlines the rationale for spending reviews, implementation challenges, and provides examples from countries like Canada, the Netherlands, and Ireland.
- Budgeting is an operational plan for a defined period, usually a year, expressed in financial terms based on expected income and expenditures.
- The purposes of a budget include facilitating planning and decision making, recognizing controllable and uncontrollable costs, and allowing for feedback on utilization of funds.
- Key aspects of developing a budget include ensuring flexibility, synthesizing past, present and future factors, and gaining support from top management.
Action Plan to Convert Educational Grant dependent institutes to Profit Centre. Examples of such an institute is ‘British Council’. This paper takes British Council as an example and creates an action plan around it. It is an example of how to convert an institutes that is mainly depended on Grants to be ‘Self Sufficient’ and then ‘Revenue Generating’ Profit Centre. It can be easily replicated to other such institutes.
Similar to Financial Discipline and Accountability - Jon BLÖNDAL, OECD (English) (20)
The document discusses transparency and oversight of political party financing. It finds that financial contributions to political parties are not fully transparent and are still vulnerable to political and foreign influence. Additionally, financial reports from political parties are not always publicly available or submitted on time according to regulations.
Summary of the OECD expert meeting: Construction Risk Management in Infrastru...OECD Governance
Presented at the OECD expert meeting "Construction Risk Management in Infrastructure Procurement: The Loss of Appetite for Fixed-Price Contracts", held on 17 May 2023 at the OECD, Paris and online.
Using AI led assurance to deliver projects on time and on budget - D. Amratia...OECD Governance
Presented at the OECD expert meeting "Construction Risk Management in Infrastructure Procurement: The Loss of Appetite for Fixed-Price Contracts", held on 17 May 2023 at the OECD, Paris and online.
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, Stockholm (SE)OECD Governance
This document discusses different construction project delivery and payment models. It begins by outlining common delivery models like design-bid-build and design-build. It then explains different payment methods that can be used like fixed price, unit prices, and cost-reimbursable. The document also discusses pricing strategies and how they relate to risk transfer between parties. It provides details on collaborative models like early contractor involvement and discusses selecting the optimal contract based on a client's project risks, desired influence, and market conditions.
Building Client Capability to Deliver Megaprojects - J. Denicol, professor at...OECD Governance
Presented at the OECD expert meeting "Construction Risk Management in Infrastructure Procurement: The Loss of Appetite for Fixed-Price Contracts", held on 17 May 2023 at the OECD, Paris and online.
Procurement strategy in major infrastructure: The AS-IS and STEPS - D. Makovš...OECD Governance
Presented at the OECD expert meeting "Construction Risk Management in Infrastructure Procurement: The Loss of Appetite for Fixed-Price Contracts", held on 17 May 2023 at the OECD, Paris and online.
Procurement of major infrastructure projects 2017-22 - B. Hasselgren, Senior ...OECD Governance
Presented at the OECD expert meeting "Construction Risk Management in Infrastructure Procurement: The Loss of Appetite for Fixed-Price Contracts", held on 17 May 2023 at the OECD, Paris and online.
ECI Dutch Experience - A. Chao, Partner, Bird&Bird & J. de Koning, Head of Co...OECD Governance
This document discusses ECI Dutch experience with collaborative contracting. It mentions a McKinsey report from 2018 on collaborative contracting and recent developments in the field. Finally, it provides lessons learned from a project in Amsterdam called Bouwteam De Nieuwe Zijde Noord.
ECI in Sweden - A. Kadefors, KTH Royal Institute of Technology, StockholmOECD Governance
Presented at the OECD expert meeting "Construction Risk Management in Infrastructure Procurement: The Loss of Appetite for Fixed-Price Contracts", held on 17 May 2023 at the OECD, Paris and online.
EPEC's perception of market developments - E. Farquharson, Principal Adviser,...OECD Governance
Presented at the OECD expert meeting "Construction Risk Management in Infrastructure Procurement: The Loss of Appetite for Fixed-Price Contracts", held on 17 May 2023 at the OECD, Paris and online.
Geographical scope of the lines in Design and Build - B.Dupuis, Executive Dir...OECD Governance
Presented at the OECD expert meeting "Construction Risk Management in Infrastructure Procurement: The Loss of Appetite for Fixed-Price Contracts", held on 17 May 2023 at the OECD, Paris and online.
Executive Agency of the Dutch Ministry of Infrastructure and Water Management...OECD Governance
Presented at the OECD expert meeting "Construction Risk Management in Infrastructure Procurement: The Loss of Appetite for Fixed-Price Contracts", held on 17 May 2023 at the OECD, Paris and online.
Presentation of OECD Government at a Glance 2023OECD Governance
Paris, 30 June, 2023
Presentation by Elsa Pilichowski, Director for Public Governance, OECD.
The 2023 edition of Government at a Glance provides a comprehensive overview of public governance and public administration practices in OECD Member and partner countries. It includes indicators on trust in public institutions and satisfaction with public services, as well as evidence on good governance practices in areas such as the policy cycle, budgeting, procurement, infrastructure planning and delivery, regulatory governance, digital government and open government data. Finally, it provides information on what resources public institutions use and how they are managed, including public finances, public employment, and human resources management. Government at a Glance allows for cross-country comparisons and helps identify trends, best practices, and areas for improvement in the public sector.
See: https://www.oecd.org/publication/government-at-a-glance/2023/
The Protection and Promotion of Civic Space: Strengthening Alignment with Int...OECD Governance
Infographics from the OECD report "The Protection and Promotion of Civic Space Strengthening Alignment with International Standards and Guidance".
See: https://www.oecd.org/gov/the-protection-and-promotion-of-civic-space-d234e975-en.htm
OECD Publication "Building Financial Resilience
to Climate Impacts. A Framework for Governments to manage the risks of Losses and Damages.
Governments are facing significant climate-related risks from the expected increase in frequency and intensity of cyclones, floods, fires, and other climate-related extreme events. The report Building Financial Resilience to Climate Impacts: A Framework for Governments to Manage the Risks of Losses and Damages provides a strategic framework to help governments, particularly those in emerging market and developing economies, strengthen their capacity to manage the financial implications of climate-related risks. Published in December 2022.
OECD presentation "Strengthening climate and environmental considerations in infrastructure and budget appraisal tools"
by Margaux Lelong and Ana Maria Ruiz during the 9th Meeting of the OECD Paris Collaborative on Green Budgeting held on 17 and 18 of April 2023 in Paris.
OECD presentation "Building Financial Resilience to Climate Impacts. A Framework to Manage the Risks of Losses and Damages" by Andrew Blazey, Stéphane Jacobzone and Titouan Chassagne. Presented during the 9th Meeting of the OECD Paris Collaborative on Green Budgeting held on 17 and 18 of April 2023 in Paris
OECD Presentation "Financial reporting, sustainability information and assurance" by Peter Welch during the 5th Session during the 9th Meeting of the OECD Paris Collaborative on Green Budgeting held on 17 and 18 of April 2023 in Paris
This document summarizes developments in sovereign green bond markets. It discusses approaches to incorporating environmental, social, and governance (ESG) factors into public debt management. Sovereign green bond issuance has grown significantly in both advanced and emerging economies since 2016. Green bonds make up the largest share of the labeled bond market. Major benefits of sovereign green bonds include their positive impact on creditworthiness and alignment with ESG policies. However, issuers also face challenges such as additional costs and complexity of the issuance process. Common leading practices emphasize transparency, collaboration, and commitment to reporting.
Causes Supporting Charity for Elderly PeopleSERUDS INDIA
Around 52% of the elder populations in India are living in poverty and poor health problems. In this technological world, they became very backward without having any knowledge about technology. So they’re dependent on working hard for their daily earnings, they’re physically very weak. Thus charity organizations are made to help and raise them and also to give them hope to live.
Donate Us:
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FT author
Amanda Chu
US Energy Reporter
PREMIUM
June 20 2024
Good morning and welcome back to Energy Source, coming to you from New York, where the city swelters in its first heatwave of the season.
Nearly 80 million people were under alerts in the US north-east and midwest yesterday as temperatures in some municipalities reached record highs in a test to the country’s rickety power grid.
In other news, the Financial Times has a new Big Read this morning on Russia’s grip on nuclear power. Despite sanctions on its economy, the Kremlin continues to be an unrivalled exporter of nuclear power plants, building more than half of all reactors under construction globally. Read how Moscow is using these projects to wield global influence.
Today’s Energy Source dives into the latest Statistical Review of World Energy, the industry’s annual stocktake of global energy consumption. The report was published for more than 70 years by BP before it was passed over to the Energy Institute last year. The oil major remains a contributor.
Data Drill looks at a new analysis from the World Bank showing gas flaring is at a four-year high.
Thanks for reading,
Amanda
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New report offers sobering view of the energy transition
Every year the Statistical Review of World Energy offers a behemoth of data on the state of the global energy market. This year’s findings highlight the world’s insatiable demand for energy and the need to speed up the pace of decarbonisation.
Here are our four main takeaways from this year’s report:
Fossil fuel consumption — and emissions — are at record highs
Countries burnt record amounts of oil and coal last year, sending global fossil fuel consumption and emissions to all-time highs, the Energy Institute reported. Oil demand grew 2.6 per cent, surpassing 100mn barrels per day for the first time.
Meanwhile, the share of fossil fuels in the energy mix declined slightly by half a percentage point, but still made up more than 81 per cent of consumption.
Presentation by Rebecca Sachs and Joshua Varcie, analysts in CBO’s Health Analysis Division, at the 13th Annual Conference of the American Society of Health Economists.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
Financial Discipline and Accountability - Jon BLÖNDAL, OECD (English)
1. Enhancing the Finance Function
in Line Ministries
9th Annual Meeting of MENA Senior Budget Officials
Kuwait City, 13 October 2016
Jón Ragnar Blöndal
Head, Budgeting and Public Expenditures
2. • Finance Function in Line Ministries and the “Financial
Control Model”
• Lessons Learned for an Effective “Financial Control
Model.”
2
Agenda
3. • Top-down budgeting is a fundamental shift in the functioning of the
budget process and the role of line ministries
– Information asymmetry
– “Ownership of actions”
– Baselines (incrementalism)
• Ministerial expenditure ceilings (caps) (envelopes)
– Varying degrees of flexibility
– Annual or multi-year time-frame
– Entitlement / mandatory spending?
• Top-down budgeting is only feasible if line ministries are capable of
implementing such a system of expenditure ceilings
3
Top-Down Budgeting
4. 4
Finance Function in Line Ministries (1)
• Conventional Model
– Central finance function in line ministries is largely technical
and administrative in nature
– Central budget office interacts directly with sectoral program
units in line ministries
• “Financial Control Model”
– Strong finance function in line ministries
• “Each Ministry is Its Own Finance Ministry”
– Central budget office does not interact with sectoral program
units directly (unilaterally)
5. Finance Function in Line Ministries (2)
5
Conventional
Model
Financial Control
Model
Technical Financial
Administration
Budget Control
(Discipline)
Fiscal Co-ordination
(Re-) Allocation
Operational
Control
(Management of
resources)
Cumulative Effect
6. • Fosters budget discipline
– Within each ministerial expenditure ceiling
– Monitors budget preparation and implementation in sectoral programs in order to
avoid overspending on the current and multi-year ministerial expenditure ceilings.
– Acts as an “early warning” system to identify potential problems and concerns
• Any expected over-spending must trigger action
– Discuss necessary policy corrections in each respective sectoral program to prevent
overspending
– Discuss policy changes in other sectoral program to compensate (re-allocate) for the
overspending within a ministerial total expenditure ceiling
– Overspending beyond the total ministerial expenditure ceiling
• Only a strong central finance function in line ministries can
take this whole-of-ministry view
– Close interaction with minister
6
Budget Control
7. • Stimulate re-allocation within each ministerial
expenditure ceiling
– From sectoral programs that are less valued to those that are more valued
– “Less with less”
• Creating “fiscal space” for new policy initiatives
– Incrementalism
– High degree of trust needed vis-à-vis central budget office
• React rapidly to ensure budget control (discipline)
– Ensuring compliance with total ministerial expenditure ceiling
• Again, only a strong central finance function in line
ministries can take this whole-of-ministry view
– Close interaction with minister
– Role of central budget office is brokering inter-ministerial reallocation and
supporting overall political prioritization
7
Fiscal Coordination
8. • Enhance effective and efficient management of
resources
– Foster good managerial practices among budget holders within line
ministries
– Devolution within line ministries
• Inform decisions on reallocations
– Information asymmetry
8
Operational Control
10. • Establish ministerial ceilings at the start of budget
preparations
– Updating previous multi-year expenditure ceilings
– Reallocations among expenditure ceilings, or addition/reduction in total
expenditures
– May require moving forward the budget calendar
• If fiscal year = calendar year, then “single decision moment” in May
• Can be politically difficult: making difficult decisions earlier
• Ceilings are binding once established
– If they appear to be negotiable, line ministries will focus their attention on
increasing their ceiling, rather than complying with the established one
10
Early and Binding Expenditure Ceilings
11. • Sub-ceilings for salaries, other operating expenditure,
transfers, and capital expenditure
• Avoid multiple expenditure ceilings for each minister
– The larger the number of expenditure ceilings, the smaller the opening for re-
allocation
• Avoid “ring-fenced” expenditure ceilings for specific
programs
• Avoid cross-ministerial expenditure ceilings
– Follow institutional boundaries for accountability purposes
11
Design of Expenditure Ceilings
12. • For the central finance function in line ministries to be effective in its new
role, sectoral units and agencies should be the “budget holders,” i.e.
incur commitments and order payments
• It can then perform – and be seen to perform – its role in a more neutral
and objective manner
• The central finance function serves as an interface with the budget office in
budget policy; this does not prevent devolving technical financial
administrative functions to sectoral units
12
“Budget Holders”
13. • Fundamental questions beyond outputs and results need to be
asked
– Why is this programme a task of central government, rather than lower levels of
government or the market?
– What alternative policy instruments could be used to achieve the same programme
objectives? What does each different policy instrument cost?
– What would happen if the entire programme would be abolished?
• Little incentive for line ministry to be critical if imposed from
the outside…
• …but can be seen by line ministries as an opportunity to
improve policies and for reallocation and funding new
initiatives
• Role of central budget office is primarily to provide
frameworks and general guidance
13
Institutionalisation of Programme
Evaluation
14. • Finance Function within Line Ministries
– Varies greatly in practice, depending especially on the devolution of technical
financial administrative to sectoral units (or shared services agencies)
– Establishing relations working relations with sectoral programme units
– Senior position; generally reports directly to the top civil servant in the ministry
– Enjoys the confidence of Minister
• Co-ordination with the Ministry of Finance
– The finance function can only be effective if it co-operates closely with the central
budget office
– The central budget office must operate via the finance function in line ministries,
rather than directly with its sectoral programs.
– Heads of the finance function often have a professional background in the central
budget office.
– In some cases, the central budget office has ‘veto” power over appointment
– Finance directorate serves as interface with the Ministry of Finance in budget
policy, but not necessary for its to devolve technical financial administration.
14
Finance Function within Line Ministries
and the Ministry of Finance
15. • A major institutional reform
– Requires an integrated package of measures
• Potential initial resistance in the line ministries themselves
– What do they gain by this reform?
– Greater ownership; establishing trust between the finance function in line
ministries and the central budget office
– As budgets become more flexible within an overall ministerial expenditure ceiling,
reallocation of resources (fiscal space) to implement new policies is a key benefit
15
Conclusion
16. 16
OECD Journal on Budgeting
www.oecd.org/gov/budgeting
jon.blondal@oecd.org