From Program to Performance Budgeting: The Challenge for Emerging Market Economies

September 16, 2003

Preview Citation

Format: Chicago

Jack Diamond. From Program to Performance Budgeting: The Challenge for Emerging Market Economies, (USA: International Monetary Fund, 2003) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Many emerging market economies are trying to improve their budget processes and move to performance-based budgeting. This paper first reviews the evolution of the "new" performance budgeting model, increasingly being applied in industrial countries. By identifying its main components, the tasks faced by emerging market economies when converting their present budget systems to this model are determined. It is recognized that this conversion will not be easy and will require four major reform elements. First, any existing program structure must be set in the wider context of strategic budget planning and medium-term budget frameworks. Second, this typically involves redesigning and refining existing program structures. Third, existing budget-costing systems and associated skills will probably need to be improved. Fourth, and perhaps most difficult, a new system of accountability and budget incentives needs to be introduced. For emerging market economies, these should be viewed as the prerequisites for a successful introduction of the new performance-budgeting model.

Subject: Budget execution and treasury management, Budget planning and preparation, Expenditure, Fiscal accounting and reporting, Performance-based budgeting, Public financial management (PFM)

Keywords: Allocation procedure, Allocation system, Budget execution and treasury management, Budget planning and preparation, Budget reform, Cost assignment, Cost information, Costing system, Expenditure plan, Fiscal accounting and reporting, Government activity, Government operation, Government service delivery, Line item, Northern Europe, Performance budgeting, Performance-based budgeting, Process refining cost assignment, Program budget format, Program budgeting, Refining cost assignment, Resource use, WP

Publication Details

Pages:

28
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2003/169
Stock No:

WPIEA1692003
ISBN:

9781451858365
ISSN:

1018-5941

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