Strengthening Budget ExecutionStrengthening Budget ExecutionFruits of Experience

PUBLIC EXPENDITURE MANAGEMENTBENCHMARKING AND PEER LEARNING WORKSHOP

Marriott Hotel, Warsaw, PolandApril 2-5, 2006

Why is budget execution Why is budget execution important?important?

Budget credibility Manage Spending and Revenues to budget

support choices of elected officials allow budget to be planning and steering tool promote macrofiscal discipline reduce opportunities for corruption

Enable program implementation assure resources flow to programs allow budget to be aid to operational efficiency through

spending unit advance planning, efficient administration enable program managers to achieve objective

Common Problems in Budget Common Problems in Budget Execution - SymptomsExecution - Symptoms

Large deviations between approved budget and actual spending Policy and planning undermined

Spending above approved levels Cash shortfalls, arrears

Sometimes with cash surpluses elsewhere Cash management supporting central treasury

needs, but ignoring service delivery needs Project cost increases Undermining program performance

Weak internal controls, with waste, fraud and abuse Insufficient record-keeping, inability to audit Untimely reporting, inability to manage spending Insufficient auditing, no self-correction to system

Issues for todayIssues for today

Issue 1: Expenditure control, cash management, and service delivery

Issue 2: Modern information technology and budget execution

Session guidelines40 minutes per question

5-10 minutes for wrap-upPanelists: 5 minute limit

Issue 1: Issue 1: Expenditure control, cash management, and Expenditure control, cash management, and

service deliveryservice delivery

What major problem encountered and reform undertaken to enhance control over expenditureenhance cash management and planningbe responsive to line ministry and program

needs Have these solved the problem? Why

or why not? Experts: what other lessons or

experiences

Issue 2: Issue 2: Modern information technology and budget Modern information technology and budget

executionexecution

How your government uses financial management information systems (FMIS) in managing the budget?Benefits and limitations of current system

What lessoned learned in implementing the current system?Obstacles, challenges, solutions

Future developmentWhat advice to give others embarking on

reform?