Presentation held by Mrs. Galina Kurlyandskay, Director of the Center for Fiscal Politics, within the Regional Workshop on Georgia's anti-corruption and public service delivery reforms (22-24 September 2011).

1. Galina Kurlyandskaya
(Russia)
“New Public Management” Principles
in Fighting Corruption and Improving Government Services
saf
(Cases of Russia and Kazakhstan)
Batumi,
September 2011

2. Government Expenditures as a Source of Corruption
Expenditure procedures are the major source of government corruption and
leakage of public funds.
This happens when government officials:
• procure private goods and services
• allocate funds across government agencies (ministries)
• allocate funds across government spending institutions
• allocate intergovernmental transfers across sub-national governments
20/1 Tverskaya Str. Moscow 125009 Russia Tel. +7(495) 775-5100, Fax +7(495) 775-5180
fpcenter@fpcenter.org www.fpcenter.ru

3. “New Public Management”:
Major Principles in Public Spending
Russia Kazakhstan
Formula-based intergovernmental Introduced Introduced
fiscal transfers
Open competition for contracts in Introduced Introduced
public procurement
Performance budgeting of In progress In progress
spending institutions
Program budgeting of In progress In progress
government agencies
Autonomy of government In progress In progress
spending institutions
20/1 Tverskaya Str. Moscow 125009 Russia Tel. +7(495) 775-5100, Fax +7(495) 775-5180
fpcenter@fpcenter.org www.fpcenter.ru

4. Performance Budgeting of Spending Institutions
Opportunities Challenges
• Budgeting for quantity and quality of • How to involve citizens in monitoring
public services and not for keeping performance of government
spending institutions afloat institutions?
• Provision of fair access to guaranteed • How to secure unified standards of
social services public goods across the entire
• Clear distinction between guaranteed country?
“free” and optional “paid” services • How to cost public services?
• Disclosure of information on peoples’ • How to choose proper performance
rights to free public services (their indicators (both quantitative and
quantity and quality) qualitative)?
• Disclosure of information on • How to overcome the resistance of
government spending institutions public entities that would prefer not
• Competition for government funding to disclose information and not to
on the side of government institutions compete for government funding?
20/1 Tverskaya Str. Moscow 125009 Russia Tel. +7(495) 775-5100, Fax +7(495) 775-5180
fpcenter@fpcenter.org www.fpcenter.ru

5. Program Budgeting
Opportunities Challenges
• Budget planning is based on strategic • How to make government agencies
development plans of the government interested in program budgeting?
• The goals for government spending • How to make programs’
programs are transparent and administrators accountable not so
measurable before the prime-minister as before
• The results of government spending citizens?
programs are transparent and • How to make citizens being involved
measurable into the monitoring of government
programs?
• How to cost government programs?
20/1 Tverskaya Str. Moscow 125009 Russia Tel. +7(495) 775-5100, Fax +7(495) 775-5180
fpcenter@fpcenter.org www.fpcenter.ru

6. Autonomy of Government Spending Institutions
Opportunities Challenges
• Quasi-contracts with spending • How to set general funding norms
institutions for service delivery for similar institutions?
• Lump-sum and per service funding • How to guarantee that government
of spending institutions funding is sufficient for the
• Responsibility of spending institution to follow the prescribed
institutions for performance standards?
indicators • How to introduce competition for
• Increased efficiency and government funding between
effectiveness of public spending government and private
institutions?
• Competition for clients
• Revenues from paid services stay
with the institution for development
purposes
20/1 Tverskaya Str. Moscow 125009 Russia Tel. +7(495) 775-5100, Fax +7(495) 775-5180
fpcenter@fpcenter.org www.fpcenter.ru

7. Formula-based Intergovernmental Fiscal Transfers
Opportunities Challenges
• Streamlined allocation of • How to simplify and render
intergovernmental transfers transparent the transfer allocation
• Reduced corruptive formula?
“intergovernmental negotiations” • How to keep the transfer allocation
• Guaranteed minimal funding of sub- formula unchanged over time?
national government services • How to formalize the allocation of
all the different kinds of transfers?
20/1 Tverskaya Str. Moscow 125009 Russia Tel. +7(495) 775-5100, Fax +7(495) 775-5180
fpcenter@fpcenter.org www.fpcenter.ru

8. Tender Mechanisms in Government Procurement
Opportunities Challenges
• Transparent procurement • How to avoid dumping?
procedures • How to receive the real value for
• Higher efficiency of government money?
spending • How to deal with preferences to
• Prevention of fraud, waste, local producers?
corruption and local protectionism • How to combine transparency and
• Fair opportunities for suppliers flexibility to meet government ‘s
• Non-discrimination against the urgent (unplanned for) needs?
goods, services or suppliers
20/1 Tverskaya Str. Moscow 125009 Russia Tel. +7(495) 775-5100, Fax +7(495) 775-5180
fpcenter@fpcenter.org www.fpcenter.ru

9. Thank you
?
20/1 Tverskaya Str. Moscow 125009 Russia Tel. +7(495) 775-5100, Fax +7(495) 775-5180
fpcenter@fpcenter.org www.fpcenter.ru