This presentation was made by Wojciech ZIELINSKI, OECD, at the 15th Annual Meeting of OECD-CESEE Senior Budget Officials held in Minsk, Belarus, on 4-5 July 2019

1. 2018 OECD Performance Budgeting
Wojciech Zieliński
Senior Policy Adviser
OECD/GOV
Minsk, 4 July 2019

2. • Quick presentation of the survey on performance
budgeting
• OECD good practices on performance budgeting
• Developing KPIs
2
Outline of the presentation

3. • Fifth OECD PB Survey
• Coverage:
45 questions on
Performance Budgeting
Spending Review
Evaluation
• Respondents mainly from CBAs
• Response rate: 33 countries (out of 35)
 all 2018 data in this presentation is coming from the
2018 OECD Performance Budgeting Survey
3
2018 OECD Performance Budgeting Survey

4. 4
Performance Budgeting survey
Use of performance frameworks continues to increase
over time and are the norm across the OECD

5. 5
Performance budgeting survey
What kind of performance budgeting?
CAN
EST
FIN
GBR
ISL
LVA
MEX
NOR
AUT
CHE
CHLCZE
FRA
HUN
IRL
JPN
KOR
NLD
NZL
SWE
AUS
BEL
DEU
DNK
ESP
ITA POL
SVK
SVN
TUR
Managerial
Performance Approach
(8)
Performance-Informed
Approach
(12)
Presentational
Approach
(10)

6. 6
Performance budgeting survey
Increased use of performance information - across a broad
range of stakeholders – is observed over the last 5 years
Number of countries

7. 7
Performance budgeting survey
Spending Review information is becoming more important and
is more likely to be used during budget negotiations

8. 8
Performance budgeting survey
The greatest benefits are increased transparency about objectives,
and the quality and usefulness of performance information

9. 9
Performance budgeting survey
Coordination problems are the biggest challenge
Main challenges for the implementation of performance budgeting (2018)

10. Budgeting
within
fiscal
objectives
Good practices for performance budgeting
Context II: OECD Framework of Modern Budgeting
Quality,
integrity &
independent
audit
Performance,
Evaluation &
VFM
Comprehensi
ve budget
accounting
Effective
budget
execution
Alignment
with medium-
term strategic
plans and
priorities
Performance,
evaluation &
VFM
Transparency,
openness &
accessibility
Participative,
Inclusive
& Realistic
Debate
Fiscal Risks &
Sustainability
Capital
budgeting
framework
10

11. • The rationale and objectives of performance budgeting
are clearly documented and reflect the interests
of key stakeholders.
• Performance budgeting aligns expenditure with the
strategic goals and priorities of the government.
• The performance budgeting system incorporates
flexibility to handle the varied nature of government
activities and the complex relationships between
spending and outcomes.
• Government invests in human resources, data and
other infrastructure needed to support performance
budgeting.
11
Good practices for performance
budgeting

12. • Performance budgeting facilitates systematic
oversight by the legislature and civil society,
reinforcing the government’s performance
orientation and accountability.
• Performance budgeting complements other tools
designed to improve performance orientation,
including programme evaluation and
spending reviews.
• Incentives around the performance budgeting
system encourage performance-oriented behaviour
and learning.
12
Good practices for performance
budgeting

13. • Number and type of KPIs – what level of
detail is needed?
• The institutional set up and procedures for
developing KPIs and setting targets
• Quality standards in developing indicators
• Measuring of horizontal/cross-cutting issues
• Monitoring the performance
• Accountability for achievements of set targets
13
Developing KPIs
Dilemmas

14. 14
Number and type of KPIs – what level of
detail is needed?
Output or activities` related KPIs are the most commonly used
Outcomes
16%
Intermediate
Outcomes
10%
Outputs
31%
Milestones
5%
Activities
38%
Types of indicators in budget submissions

15. • Number and type of KPIs – what level of detail is
needed?
• The institutional set up and procedures for
developing KPIs and setting targets
• Quality standards in developing indicators
• Measuring of horizontal/cross-cutting issues
• Monitoring the performance
• Accountability for achievements of set targets
15
Developing KPIs
Dilemmas

16. 16
Performance budgeting survey
Target setting tends to be done by line ministries,
and its coverage varies
Coverage of performance
targets (2018)
Responsibility for
target setting (2018)

17. • Number and type of KPIs – what level of detail is
needed?
• The institutional set up and procedures for
developing KPIs and setting targets
• Quality standards in developing indicators
• Measuring of horizontal/cross-cutting issues
• Monitoring the performance
• Accountability for achievements of set targets
17
Developing KPIs
Dilemmas

18. 18
Quality standards in developing indicators
Many OECD countries do not implement centrally defined
quality standards
17
12
Are there centrally defined quality standards or
critieria re: selection and approval of performance
indicators?
Yes, for all indicators No

19. 19
Quality criteria important for the development
of indicators
Consistency with strategies is more important than
benchmarking
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Consistency with national plan or strategy
Consistency with ministry/agency plans or strategies
Indicators facilitate comparison between agencies or implementing
units
Indicators are developed/owned by line ministries or agencies
Consistency with national statistics
Consistency with internationally recognized performance
benchmarks
Compliance with generic quality standards (SMART, etc.)
Ready availability of performance data
Operational usefulness/relevance for programme management
Types of quality criteria for selection/approval of
performance indicators
Required Recommended Not required

20. • Number and type of KPIs – what level of detail is
needed?
• The institutional set up and procedures for
developing KPIs and setting targets
• Quality standards in developing indicators
• Measuring of horizontal/cross-cutting issues
• Monitoring the performance
• Accountability for achievements of set targets
20
Developing KPIs
Dilemmas

21. 21
Performance Budgeting
Gender is one of the thematic objectives most likely to be
systematically integrated into performance frameworks
Indicators of cross cutting or thematic objectives in the budget (2018)

22. 22
Performance budgeting survey
Sustainable Development Goals (SDGs) are not yet systematically
reflected in performance frameworks
Reflection of SDG targets and indicators in national frameworks (2018)

23. • Number and type of KPIs – what level of detail is
needed?
• The institutional set up and procedures for
developing KPIs and setting targets
• Quality standards in developing indicators
• Measuring of horizontal/cross-cutting issues
• Monitoring the performance
• Accountability for achievement of set targets
23
Developing KPIs
Dilemmas

24. THANK YOU !