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
BUDGET PROCESS OF THE PHILIPPINE NATIONAL GOVERNMENT, Report for PA1-Introduction to Public Administration, College of Public Administration - Tarlac State University
During the preparation phase, the Executive prepares the proposed National Budget. This is followed by the legislation phase where the Congress authorize the General Appropriations Act. In the execution phase, agencies utilize their approved budgets and during the accountability phase the executive phase, agencies utilize their approved, the executive monitor and evaluate the use of the budget
The objective of these Principles is to draw together the lessons of a decade and more of work by the OECD Working Party of Senior Budget Officials (SBO) and its associated Networks, along with the contributions and insights from other areas of the OECD and of the international budgeting community more generally. The Principles provide a concise overview of good practices across the full spectrum of budget activity, taking account in particular of the lessons of the recent economic crisis, and aim to give practical guidance for designing, implementing and improving budget systems to meet the challenges of the future. The principles are being considered as a draft Recommendation of the OECD Council, underpinning their importance to good public governance and inclusive growth.
For further information, please visit: www.oecd.org/governance/principles-budgetary-governance.htm
The OECD is actively engaged with MENA partners in addressing those challenges through well-proven work methods of regional dialogue, peerlearning and support for reforms. At the centre of the partnership is the MENA-OECD Initiative on Governance and Competitiveness for Development, launched in 2005 as a platform for joint work at the regional and country levels. With an extended mandate for 2016-2020, the fruitful and intense MENA-OECD co-operation will continue evolving to adapt to the development priorities of the region.
BUDGET PROCESS OF THE PHILIPPINE NATIONAL GOVERNMENT, Report for PA1-Introduction to Public Administration, College of Public Administration - Tarlac State University
During the preparation phase, the Executive prepares the proposed National Budget. This is followed by the legislation phase where the Congress authorize the General Appropriations Act. In the execution phase, agencies utilize their approved budgets and during the accountability phase the executive phase, agencies utilize their approved, the executive monitor and evaluate the use of the budget
The objective of these Principles is to draw together the lessons of a decade and more of work by the OECD Working Party of Senior Budget Officials (SBO) and its associated Networks, along with the contributions and insights from other areas of the OECD and of the international budgeting community more generally. The Principles provide a concise overview of good practices across the full spectrum of budget activity, taking account in particular of the lessons of the recent economic crisis, and aim to give practical guidance for designing, implementing and improving budget systems to meet the challenges of the future. The principles are being considered as a draft Recommendation of the OECD Council, underpinning their importance to good public governance and inclusive growth.
For further information, please visit: www.oecd.org/governance/principles-budgetary-governance.htm
The OECD is actively engaged with MENA partners in addressing those challenges through well-proven work methods of regional dialogue, peerlearning and support for reforms. At the centre of the partnership is the MENA-OECD Initiative on Governance and Competitiveness for Development, launched in 2005 as a platform for joint work at the regional and country levels. With an extended mandate for 2016-2020, the fruitful and intense MENA-OECD co-operation will continue evolving to adapt to the development priorities of the region.
The Best Practices are designed as a reference tool for Member and non-member countries to use in order to increase the degree of budget transparency in their respective countries. The Best Practices are organised around specific reports for presentational reasons only.
It is recognised that different countries will have different reporting regimes and may have different areas of emphasis for transparency. The Best Practices are based on different Member countries’ experiences in each area. It should be stressed that the Best Practices are not meant to constitute a formal “standard” for budget transparency.
http://www.oecd.org/gov/budgeting/
The TRIPS meeting in North Africa and West Asia held in Tunisia outlined the organization for leadership and execution of the Dryland Systems CRP and highlighted the budgetary breakdown from 2013 to 2015. Budgeting and partnership principles were also discussed during the presentation.
The organizational structure consists of the CG system Consortium Board to oversee work via a performance contract under which ICARDA will take the role of the lead center responsible for governance, fiduciary oversight and financial management. A steering committee comprised of independent science advisors will provide strategic oversight, and be responsible for direction, monitoring and resource allocation. A research management committee will be responsible for overall coordination and management of the research agenda in each of the 5 target dryland regions. This regional level work will be done in partnership with CG centers, ARIs and NARS partners. Regional Stakeholder Advisory Committees are also being established to facilitate and oversee the work of the regional coordinators.
The Jordan Competitiveness and Investment project supports the Government of Jordan in strengthening the reform implementation capacity of selected institutions responsible for investment policy, promotion and services.
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A Principle Budget Factor is a factor or an activity which is constraint for business and which is limiting factor. Budgets on other factors are followed by the principle budget factor. Copy the link given below and paste it in new browser window to get more information on Principle Budget Factor:- www.transtutors.com/homework-help/accounting/principle-budget-factor.aspx
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10 Principles of Budgetary Governance
1. Budgetary Governance Principles
Budgeting and Public Expenditures Division
Public Governance & Territorial Development Directorate
OECD
October 2014
2. Overview
•
Background to the Budget Principles
•
Consultation process – key contributions
•
The updated Budget Principles
•
Moving forward…
3. •
6 years of economic crisis in most OECD countries
•
Several years of fiscal consolidation still lie ahead
–
Ongoing ‘austerity’ poses challenges for society, for governments and public administrations
–
Do traditional budgeting models provide the right tools to meet these challenges?
–
What lessons can we draw from experience of the past 6 years?
–
Does this reinforce, or challenge, the earlier lessons and ‘good practices’ we had drawn from earlier experiences?
Budget Principles – “Why Now?”
5. OECD Budget Reviews
•
Germany
•
Chile
•
Denmark
•
Russia
•
Turkey
•etc.
•
Australia
•
Sweden
•
Greece
•
Singapore
•
Norway
•
etc.
•
USA
•
Canada
•
Brazil
•
Indonesia
•
Ukraine
•
etc.
•
In-depth, qualitative assessment of a country’s budgeting processes, laws, institutions
7. OECD Ministerial Council Meeting 2013
•
Themes: restoring trust – addressing long-term challenges – drawing lessons from the crisis
•
“re-affirm OECD role as global standard-setter”
•
“call on OECD to proactively update and upgrade existing standards”
•Budget Principles – SBO contribution to these political priorities
8. Consultation process
•
First draft document prepared in autumn 2013
•
Presented at regional and thematic SBO meetings
–
LAC-SBO, MENA-SBO, Performance & Results, Accruals
–
OECD-Korea Policy Center, SEA Regional Network
–
Fiscal Network (across levels of government)
•
Open consultation via OECD website
–
Country responses from OECD and further afield
–
Institutional responses from WB, IMF, GIFT
–
Individual responses
9. Key Feedback Received
•
Most – very positive and welcoming of the initiative
•
Some caution against being “over-prescriptive”
–
Be sure to respect national, cultural, institutional divergences
•
Additional principles proposed
–
Budget execution
–
Capital budgeting
•
Scope for streamlining some proposed principles
–
Clear fiscal objectives + top-down budgeting
–
Alignment with strategic plans + medium-term dimension
•
Some clarifications, qualifications
•
Some closer alignment with other international norms
10. The Updated Budget Principles
1.
Budgets should be managed within clear, credible and predictable limits for fiscal policy.
a)The starting point – without it, all other policy objectives suffer
b)“Fiscal rules” helpful for some, not necessary for others
2.Budgets should be closely aligned with the medium- term strategic priorities of government.
a)“Other side of the coin” – matching available resources with priorities and plans – “top down” rather than traditional “bottom up” approach
b)Medium-term expenditure framework – important tool
11. The Updated Budget Principles
3.
The capital budgeting framework should be designed to meet national development needs in a cost-effective and coherent manner.
a)
Grounded in appraisal of economic capacity gaps, infrastructural development needs and sectoral/social priorities
b)
Neutrality in assessing PPP or Traditional Infrastructure Procurement
c)
Elements of a national framework for public investment
4.Budget documents and data should be open, transparent and accessible.
a)Clear, factual budget reports to inform all key budget stages
b)“accessibility” – open data formats, citizen’s budget or summary
c)Design and use budget data in support of open government, integrity, evaluation and policy coordination across levels of government
12. The Updated Budget Principles
5.
Debate on budgetary choices should be inclusive, participative and realistic.
a)
Beyond “access” to “engagement”
b)
Primary role of parliament – ex ante as well as ex post
c)
a role for citizens, CSOs also – in contributing to a realistic debate about trade-offs and opportunity costs
6.
Budgets should present a comprehensive, accurate and reliable account of the public finances.
a)
Include all expenditures and revenues - “budget sincerity”
b)
Full national overview: levels of government, whole public sector
c)
Full budget accounting: either accruals or cash, but providing complementary information needed to present a full picture
13. The Updated Budget Principles
7.
Budget execution should be actively planned, managed and monitored.
a)
Budgets as authorised should be implemented fully and faithfully
b)
Clear regulation of roles for execution, implementing and accounting
c)
Single treasury fund – minimise special-purpose funds and ear-marking
d)
Some flexibility for virement can promote efficient and value-for-money
8.
Performance, evaluation and value for money should be integral to the budget process.
a)
Performance information: routinely presented in a way which informs, and provides useful context for, the budget allocations
b)
Should clarify – not obscure or impede – accountability and oversight
c)
Regular evidence-based evaluation and review of programmes
d)
Ex ante evaluation of substantive new policy proposals
e)
Periodic review of government’s expenditure priorities
14. The Updated Budget Principles
9.
Longer-term sustainability and other fiscal risks should be identified, assessed and managed prudently.
a)
Promote resilience of budgetary plans
b)
Clarity about identification and management of fiscal risks
c)
Regular long-term sustainability / inter-generational report, with near-term and longer-term policy messages
10.The integrity and quality of budgetary forecasts, fiscal plans and budgetary implementation should be promoted through rigorous quality assurance, including independent audit.
a)Quality and integrity of budgetary forecasts and fiscal plans
b)Role for IFIs or other Institutional mechanisms for impartial input to budgeting
c)internal auditing within all ministries and public agencies
d)Fundamental role of Supreme Audit Institution as guardian of public trust: its reports should be aligned with budgetary cycle, and it can enhance quality of performance accountability frameworks more generally.
16. Next steps…
•
Draft “Recommendation of OECD Council”
–
Official OECD instrument – international ‘soft law’
–
Reserved for OECD work of systemic international importance
•
Develop toolkits / case studies
•
More detailed guidance on individual ‘modules’
–
Leveraging the SBO and its networks