INTRODUCING RESULTS-BASED APPROACHES INTO PUBLIC SECTOR
-
Upload
jackie72 -
Category
Technology
-
view
1.363 -
download
2
Transcript of INTRODUCING RESULTS-BASED APPROACHES INTO PUBLIC SECTOR
INTRODUCING RESULTS-BASEDINTRODUCING RESULTS-BASEDAPPROACHES INTO PUBLIC SECTORAPPROACHES INTO PUBLIC SECTOR
MANAGEMENT PROCESSES:MANAGEMENT PROCESSES:The Philippine ExperienceThe Philippine Experience
INTRODUCING RESULTS-BASEDINTRODUCING RESULTS-BASEDAPPROACHES INTO PUBLIC SECTORAPPROACHES INTO PUBLIC SECTOR
MANAGEMENT PROCESSES:MANAGEMENT PROCESSES:The Philippine ExperienceThe Philippine Experience
A Paper Presented by
SECRETARY EMILIA T. BONCODINDepartment of Budget and Management
Philippines
2nd International Roundtable on Managing for Development ResultsMarrakech, Morocco
05 February 2004
RESULTS-BASED APPROACH:RESULTS-BASED APPROACH:Major Element ofMajor Element of
Philippine Public Sector ManagementPhilippine Public Sector Management
Reform ProgramReform Program
RESULTS-BASED APPROACH:RESULTS-BASED APPROACH:Major Element ofMajor Element of
Philippine Public Sector ManagementPhilippine Public Sector Management
Reform ProgramReform Program
Department of Budget and Management
Republic of the Philippines
PUBLIC SECTOR MANAGEMENT PUBLIC SECTOR MANAGEMENT REFORM PROGRAMREFORM PROGRAM
PUBLIC SECTOR MANAGEMENT PUBLIC SECTOR MANAGEMENT REFORM PROGRAMREFORM PROGRAM
operational leakages
weak corporate and regulatory environment
weak public institutions and enforcement
poor incentive structures
slow response capability to changing situations and needs
inadequate resources for basic services
deteriorating fiscal position
slow and unstable growth
poverty
To address key dysfunctions:
Department of Budget and Management
Republic of the Philippines
PUBLIC EXPENDITURE MANAGEMENT:PUBLIC EXPENDITURE MANAGEMENT:DESIRED RESULTSDESIRED RESULTS
PUBLIC EXPENDITURE MANAGEMENT:PUBLIC EXPENDITURE MANAGEMENT:DESIRED RESULTSDESIRED RESULTS
To reduce poverty by creating investment and job opportunities through:
a) Addressing the inadequacy of resources for basic services
b) Arresting the deteriorating fiscal position
Department of Budget and Management
Republic of the Philippines
PUBLIC EXPENDITURE MANAGEMENT:PUBLIC EXPENDITURE MANAGEMENT:FOCUS ON RESULTSFOCUS ON RESULTS
PUBLIC EXPENDITURE MANAGEMENT:PUBLIC EXPENDITURE MANAGEMENT:FOCUS ON RESULTSFOCUS ON RESULTS
Use of the budget as instrument for ensuring desired results
Strengthening of existing incentive structures to advocate and implement reforms
Active partnership with civil society in monitoring results
Clear targets and assessment mechanisms
Department of Budget and Management
Republic of the Philippines
PUBLIC EXPENDITURE MANAGEMENTPUBLIC EXPENDITURE MANAGEMENTFRAMEWORKFRAMEWORK
PUBLIC EXPENDITURE MANAGEMENTPUBLIC EXPENDITURE MANAGEMENTFRAMEWORKFRAMEWORK
Fiscal Discipline
Allocative Efficiency
Operational Efficiency
Department of Budget and Management
Republic of the Philippines
MAJOR REFORM INITIATIVESMAJOR REFORM INITIATIVESMAJOR REFORM INITIATIVESMAJOR REFORM INITIATIVES
OUTCOMEOUTCOME
INSTRUMENTINSTRUMENT
Fiscal Discipline Medium Term Fiscal Plan (MTFP)
Assessment of contingent liabilities; fiscal risks
Allocative Efficiency Medium Term Public Investment Program (MTPIP)
Organizational Performance Indicator Framework (OPIF)
Department of Budget and Management
Republic of the Philippines
Major Reform Initiatives…Major Reform Initiatives…Major Reform Initiatives…Major Reform Initiatives…
OUTCOMEOUTCOME
INSTRUMENTINSTRUMENT
Operational Efficiency Sectoral Effectiveness and Efficiency Review (SEER)
Agency Performance Review (APR)
Procurement reform
Installation of new government accounting system and auditing procedures
Department of Budget and Management
Republic of the Philippines
OUTCOMEINSTRUMENT
Compensation Review
Reengineering the bureaucracy
Strengthening key sector areas:
judicial reform; electoral
campaign reform; peace and
order campaign; regulatory
reform
Investment in IT and IT-based services
Major Reform Initiatives…Major Reform Initiatives…Major Reform Initiatives…Major Reform Initiatives…
Department of Budget and Management
Republic of the Philippines
MEDIUM-TERM EXPENDITURE MEDIUM-TERM EXPENDITURE FRAMEWORKFRAMEWORK
MEDIUM-TERM EXPENDITURE MEDIUM-TERM EXPENDITURE FRAMEWORKFRAMEWORK
Medium-TermPhilippine
Development Plan
Medium-TermFiscal Plan
Annual Budget
Medium-TermPublic Investment
Program
OrganizationalPerformance
Indicator Framework
AgencyPerformanc
eReview
SectoralEffectivenes
s and Efficiency Review
Incentive Structure
FISCAL INVESTMENT
MEDIUM-TERM FISCAL PLAN:MEDIUM-TERM FISCAL PLAN:FEATURESFEATURES
MEDIUM-TERM FISCAL PLAN:MEDIUM-TERM FISCAL PLAN:FEATURESFEATURES
Explicit medium term fiscal targets:deficit reduction strategy; revenue and
disbursement targets; debt management strategy
Medium term estimates of cost of ongoing and committed programs (baseline +)
Proposed revenue enhancing measures over the medium term
Clear rules for updating revenue and cost estimates
Fiscal Responsibility BillDepartment of Budget and Management
Republic of the Philippines
MEDIUM-TERM FINANCIAL PLAN:MEDIUM-TERM FINANCIAL PLAN:HIGHLIGHTSHIGHLIGHTS
MEDIUM-TERM FINANCIAL PLAN:MEDIUM-TERM FINANCIAL PLAN:HIGHLIGHTSHIGHLIGHTS
Department of Budget and Management
Republic of the Philippines
2003 2004 2005 2006 2007 2008 2009
NG Deficit (% of GDP) 4.6 4.2 3.6 2.9 2.1 1.2 0.2
Public Investment (% of GDP)(Capital projects) 2.7 2.2 1.8 2.0 1.9 2.1 2.2
Public Debt to GDP ratio (NG Outstanding Debt) 69.1 66.9 65.1 63.1 61.5 58.1 55.0
Particulars
MEDIUM-TERM MEDIUM-TERM PUBLIC INVESTMENT PROGRAMPUBLIC INVESTMENT PROGRAM
MEDIUM-TERM MEDIUM-TERM PUBLIC INVESTMENT PROGRAMPUBLIC INVESTMENT PROGRAM
Sectoral investment requirements over 6 years
Published major sectoral investment programs
Alternative financing modes for specific projects
Department of Budget and Management
Republic of the Philippines
MEDIUM-TERM MEDIUM-TERM PUBLIC INVESTMENT PROGRAMPUBLIC INVESTMENT PROGRAM
MEDIUM-TERM MEDIUM-TERM PUBLIC INVESTMENT PROGRAMPUBLIC INVESTMENT PROGRAM
Department of Budget and Management
Republic of the Philippines
0
50
100
150
200
2003 2004 2005 2006 2007 2008 2009
In B
illio
n P
es
os
Total CO ODA Others
ORGANIZATIONAL PERFORMANCEORGANIZATIONAL PERFORMANCEINDICATOR FRAMEWORK: GOALSINDICATOR FRAMEWORK: GOALSORGANIZATIONAL PERFORMANCEORGANIZATIONAL PERFORMANCEINDICATOR FRAMEWORK: GOALSINDICATOR FRAMEWORK: GOALS
Shift to output/outcome performance indicators
Clarify expected performance and accountability of government agencies
Encourage agencies to focus efforts on the delivery of outputs relevant to goal
Establish integrated performance management system where organizational performance targets cascaded down to lower level units and used as basis of performance-based compensation
Report to public and Congress in clear terms output of departments/agencies
Department of Budget and Management
Republic of the Philippines
ORGANIZATIONAL PERFORMANCEORGANIZATIONAL PERFORMANCEINDICATOR FRAMEWORK:INDICATOR FRAMEWORK:
PROCESSPROCESS
ORGANIZATIONAL PERFORMANCEORGANIZATIONAL PERFORMANCEINDICATOR FRAMEWORK:INDICATOR FRAMEWORK:
PROCESSPROCESS
Identification of desired outputs and outcomes
Agency; Oversight
MAJOR FINAL OUTPUTS (MFOs), in terms of quantity, quality, timeliness,
cost (QQTC)
Harmonization: Agency with Oversight (DBM, NEDA)
Identification of programs/projects contributing to the accomplishment of MFOsDepartment of Budget and Management
Republic of the Philippines
Organizational Performance IndicatorOrganizational Performance IndicatorFramework: Process…Framework: Process…Organizational Performance IndicatorOrganizational Performance IndicatorFramework: Process…Framework: Process…
Establishment of Performance Indicators
PI to determine whether program/projects contributed to MFO
PI must be verifiable in a quick, accurate and cost-effective manner
Department of Budget and Management
Republic of the Philippines
ORGANIZATIONAL PERFORMANCEORGANIZATIONAL PERFORMANCEINDICATOR FRAMEWORK:INDICATOR FRAMEWORK:
Example: LTOExample: LTO
ORGANIZATIONAL PERFORMANCEORGANIZATIONAL PERFORMANCEINDICATOR FRAMEWORK:INDICATOR FRAMEWORK:
Example: LTOExample: LTO
Outcome - Road safety (less incidence of road accidents)
MFO - Licensing services (Drivers)
Performance indicators:
Quality - % of licenses issued in accordance with operating standards; client satisfaction
Timeliness - % of licenses issued in accordance with timeliness standards
Department of Budget and Management
Republic of the Philippines
ORGANIZATIONAL PERFORMANCEORGANIZATIONAL PERFORMANCEINDICATOR FRAMEWORK:INDICATOR FRAMEWORK:
STATUSSTATUS
ORGANIZATIONAL PERFORMANCEORGANIZATIONAL PERFORMANCEINDICATOR FRAMEWORK:INDICATOR FRAMEWORK:
STATUSSTATUSAgencies in advance stage of the OPIF process
Agriculture sector agencies (Agriculture, Agrarian Reform, Environment and Natural Resources)
Social Welfare Labor and Employment, Education
Agencies in intermediate stage of OPIF Health Internal Revenue Customs
Agencies in the early stage Infrastructure agencies
Department of Budget and Management
Republic of the Philippines
SECTOR EFFECTIVESS AND SECTOR EFFECTIVESS AND EFFICIENCY REVIEW: EFFICIENCY REVIEW:
FEATURESFEATURES
SECTOR EFFECTIVESS AND SECTOR EFFECTIVESS AND EFFICIENCY REVIEW: EFFICIENCY REVIEW:
FEATURESFEATURES
Periodic review of ongoing programs and projects in terms of relevance, performance, cost/benefit
System for establishing and updating strategic priorities over the medium term
Allows the redirection of resources to strategic programs
Department of Budget and Management
Republic of the Philippines
SECTORAL EFFECTIVENESS ANDSECTORAL EFFECTIVENESS ANDEFFICIENCY REVIEW:EFFICIENCY REVIEW:
PROCESSPROCESS
SECTORAL EFFECTIVENESS ANDSECTORAL EFFECTIVENESS ANDEFFICIENCY REVIEW:EFFICIENCY REVIEW:
PROCESSPROCESS
Consultations: agencies; stakeholders; funding agencies
Presentation of Results and Recommendations
Approval of Cabinet Committee
Input to Updated Development Plan, Public Investment Program, Budget
Department of Budget and Management
Republic of the Philippines
SECTORAL EFFECTIVENESS ANDSECTORAL EFFECTIVENESS ANDEFFICIENCY REVIEW:EFFICIENCY REVIEW:
ResultsResults
SECTORAL EFFECTIVENESS ANDSECTORAL EFFECTIVENESS ANDEFFICIENCY REVIEW:EFFICIENCY REVIEW:
ResultsResults
Cancel excess financing (6)
Terminate projects or remaining components of projects (1)
Restructure projects, including loans (30)
Proceed (68)
Department of Budget and Management
Republic of the Philippines
AGENCY PERFORMANCE REVIEWAGENCY PERFORMANCE REVIEWAGENCY PERFORMANCE REVIEWAGENCY PERFORMANCE REVIEW
Short term review of revenue and expenditure performance vis-à-vis budget targets
Ranking of Agency Budget Performance and public reporting
Department of Budget and Management
Republic of the Philippines
AGENCY PERFORMANCE REVIEW:AGENCY PERFORMANCE REVIEW:RESULTSRESULTS
AGENCY PERFORMANCE REVIEW:AGENCY PERFORMANCE REVIEW:RESULTSRESULTS
CY 2002 - All agencies of the National Government underwent APR
Most got outstanding rating; review was based on agency-determined targets
CY 2003 - Low-budget agencies were exempted from the APR
Most got satisfactory rating
Department of Budget and Management
Republic of the Philippines
INCENTIVE STRUCTURESINCENTIVE STRUCTURESINCENTIVE STRUCTURESINCENTIVE STRUCTURES Greater flexibility in exchange for
financial discipline hurdles
Use of budget savings from procurement and streamlining activities
Creation of one-liner budgets
Expenditure autonomy for low-budget agencies
Performance-based management
Performance-based compensation
Collective negotiation agreements (CNA)
Department of Budget and Management
Republic of the Philippines
KEY ACCOMPLISHMENTS TO DATEKEY ACCOMPLISHMENTS TO DATEKEY ACCOMPLISHMENTS TO DATEKEY ACCOMPLISHMENTS TO DATEA. Planning/Budget Processes
Linked Budget to Planning starting in 1999
Changed from input-based to outcome-based budgeting in 2002 Budget Call
Formulated budget strategy as precondition to approval of new foreign loans in 2001
Conducted first Sectoral Effectiveness and Efficiency Review (SEER) 2001
Conducted first Agency Performance Reviews (APRs) in 2002
Conducted ODA Portfolio Review in 2003
Department of Budget and Management
Republic of the Philippines
Key Accomplishments to Date…Key Accomplishments to Date…Key Accomplishments to Date…Key Accomplishments to Date…
B. Reengineering the Bureaucracy
Formulated Reengineering Plan for the Bureaucracy
Reengineered key regulatory agencies: financial markets, energy, ICT
C. Capability Building (1999-2003) Workshops, Training
Oversight agencies (18)
Individual agencies (3 major, 17 minor)
Department of Budget and Management
Republic of the Philippines
D. Assessments and Documentation
2001 Budget Preparation, Performance Orientation,
Public Expenditure Management Manual
Documentation of 2002 APR
Public Expenditure, Procurement and Financial Management Review with World Bank (WB) and Asian Development Bank (ADB)
Key Accomplishments to Date…Key Accomplishments to Date…Key Accomplishments to Date…Key Accomplishments to Date…
Department of Budget and Management
Republic of the Philippines
CHALLENGESCHALLENGESCHALLENGESCHALLENGES
Department of Budget and Management
Republic of the Philippines
Refining multi-year resource constrained planning
Completing inventory of contingent liabilities
Enhancing the predictability of revenues
Cascading performance management system down to personnel appraisal
Shifting to a performance based compensation system
Advocating PEM reforms in Congress
MOVING FORWARDMOVING FORWARDMOVING FORWARDMOVING FORWARD
2004 2005 2006 2007
limitedbudgetautonomy
compensationreview
reengineeringthe bureaucracy
expandedbudget autonomy
Initial implementationof
compensationreform
Reengineeringthe bureaucracy
PEM substantially operations
Alignment of agency with individual
performance
PEM fully
operational
Department of Budget and Management
Republic of the Philippines
THANK YOU !!!THANK YOU !!!THANK YOU !!!THANK YOU !!!
Republic of the Philippines