Towards Greater Policy Coherence: Lessons from Mauritius Mr S. Puran Analyst Ministry of Finance Mauritius 27 OCT 2008.

Towards Greater Policy Towards Greater Policy Coherence: Coherence:

Lessons from MauritiusLessons from Mauritius

Mr S. PuranMr S. PuranAnalystAnalyst

Ministry of FinanceMinistry of Finance

Mauritius Mauritius 27 OCT 27 OCT 20082008

BACKGROUND: SETTING THE STAGE

Economic downturn

0

1

2

3

4

5

6

7

8

9

10

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Declining trend in growth

0

2

4

6

8

10

12

2000 2001 2002 2003 2004 2005

Job creation slowing… & unemployment increasing

BACKGROUND: SETTING THE STAGE

Economic Reform Programme

Fiscal Consolidation and Improved Public Sector Efficiency

Improving the Investment Climate

Improving trade competitiveness

Democratizing the Economy through participation, social inclusion and sustainability

BACKGROUND: SETTING THE STAGE

Supply-driven topic selection

Lack of ownership

and involvement of executive

agency

Poor consultant performance

Ineffective dissemination

and use of consultancy

outputs

Constraints to Development

Partners financial and technical

assistance

BUDGET REFORM

Administration and Legislation

Fiscal rules Mauritius Revenue Authority Public Procurement Act Finance & Audit Act and Public

Debt Management Act

Programme Based Budgeting

link Outputs with Inputs in line with Specific Objectives

PBB in Mauritius

• Programme-Based Budgeting (PBB) seeks to improve expenditure efficiency and effectiveness by systematically linking funding to results, making use of performance information to achieve that linkage.

• A fully-fledged PBB (budget year 2008-09) embedded in a three year MTEF (2008-09 / 2010-11) is currently being implemented. This forms the basis for appropriation by the National Assembly and replaces the traditional line-item budget.

77

6 Steps of the MTEF Process in MAURITIUS

MAY

Step THREE

Step FOUR

NOVEMBER JANUARY-MARCH APRIL JUNEOCTOBER

Preparation of 3-year PBB Estimates

Preparing PBB Proposals based on Ministries/Departments Strategic Plans, including the

Costing and Prioritizing of Actvities to deliver Outputs

Review and Approval of

Estimates

BOTTOM UP: Ministries

3-year Macroeconomic

Framework

3-year Preliminary

Ceilings

Ministerial Hearing and Final Ceilings

Step FIVE

TOP DOWN: MoFEE MoFEE and National Assembly

Step ONE Step TWO Step SIX

MONTH ACTIVITY

1st October 2008

Budget Sector Support Teams (BSST) of the MoFEE Budget Strategy and Management Department (BMSD) revise and update Ministries/Depts strategic plans and prepare ministerial policy priorities that include a gender perspective in line with the National Gender Policy.

October 2008BMSD updates the macroeconomic and fiscal framework. Preliminary forecasts to be discussed for the 2009-11 medium-term expenditure framework (MTEF).

November/December 2008

Prepare Ministries/Depts expenditure ceilings to programmes and sub-programmes using the updated macroeconomic and fiscal framework, the strategic plans revised by BSST, and the preliminary recommendations of the 2007-08 PBB Interim Performance Report (IPR) prepared by the Public Expenditure Management Systems Review Directorate (PEMSR).

December 2008Present to Cabinet the mid-term review of the 2007-08 PBB and the medium-term fiscal framework (MTFF).

January 2008Present to the National Assembly the mid-term review of the 2007-08 PBB and the MTFF.

January 2008Issue the gender responsive PBB Call Circular with ceilings to Ministries/Departments (programmes and sub-programmes).

February/March 2009

Ministries/Departments prepare PBB estimates based on ceilings given in the PBB Call Circular (programmes and sub-programmes) and according to PBB formats.

End of March 2009

BSST review Ministries/Depts PBB submissions (financial and non-financial information) with reference to strategic plans updated by them at the beginning of the budget cycle and evaluate their gender responsiveness when relevant.

April 2009Estimates Committee conducts ministerial hearings (financial and non-financial information).

End of April 2009 Finalize 2009-11 PBB estimates. Mid-May 2009 Submit 2009-11 PBB estimates to Cabinet for final approval. Early June 2009 Submit 2009-11 PBB budget estimates to National Assembly.Mid-June 2009 National Assembly approves 2009-11 PBB.

1st September 2009BMSD updates the macroeconomic fiscal framework; preliminary forecasts to be discussed for the 2010-12 medium-term expenditure framework (MTEF).

September 2009BSST to work closely and provide technical support to Ministries/Depts in reviewing PBB ceilings to programmes and sub-programmes guided by the submitted costs and 2009-11 PBB estimates.

October 2009Review and refine 2010-12 PBB using the available Ministries/Depts estimates, updated strategic plans and available information on 2008-09 PBB implementation.

November 2009Finalisation of the medium-term fiscal framework (MTFF) and the adjustments to Ministries/Depts ceilings (programmes and sub-programmes).

November 2009Present to Cabinet the review of the 2008-09 PBB and the medium-term fiscal framework (MTFF).

Early December 2009 Submit 2010-12 PBB budget estimates to Cabinet for final approval.Early December 2009 Submit 2010-12 PBB budget estimates to National Assembly.Mid-December 2009 National Assembly approves 2010-12 PBB.

Proposed PROGRAMME-BASED BUDGET (PBB) CALENDAR for 2009 and 2010

PBB Objectives

By developing and implementing PBB, the Government of Mauritius aims to achieve seven objectives:

1. To reform the framework governing public management in order to make it more results-oriented and geared to achieving development outcomes;

2. To promote high quality, client-responsive public services and to maximize value for money in service delivery;

3. To use performance and evaluation data for policy planning and management purposes, in particular for enhancing operational and technical efficiency, expenditure prioritization and improving allocation of resources;

4. To provide information to help reallocate resources within and between programmes and sub-programmes and to help reduce expenditure when necessary (efficiency savings);

5. To institutionalise gender equity throughout the process of aligning budgets to policy priorities and increasing the transparency and accountability of the system.

6. To improve effectiveness of government Ministries /Departments when developing and implementing their programmes and sub-programmes of activities;

7. To provide more concrete information to the Cabinet on performance for decision-making purposes and for setting future targets and priorities.

Coordination of Budget Monitoring

• The Treasury uses a computerised accounting system, known as the Treasury Accounting System (TAS), for the processing and recording under “ORACLE Financials” of the financial transactions of Government and for the preparation of monthly, quarterly and annual financial statements and other financial reports.

• • The Budget Strategy and Management Directorate (MoFED/BSMD) coordinates

the development and the maintenance under “ORACLE Balanced ScoreCard (BSC)” of the Budget database relating to non-financial performance data which is operated by Ministries / Departments to report on their budget activities. BSMD also supervises the preparation of the Quarterly Monitoring Report of the Public Sector Investment Programme (PSIP).

• The Public Expenditure Management Systems Review Directorate (MoFED/PEMSR) supervises monthly budget monitoring reviews on performance data and coordinates the preparation of half-yearly performance monitoring reports (Interim Performance Report -IPR prepared in December- and Annual Performance Report -APR prepared in July- respectively).

MAKING PARIS DECLARATION WORK

Ownership and articulation of priorities

Formulation of Ministry Strategic PlanReorganisation of Ministry administrative structure

Need for Cooperating Partner input to address:

Mindset focussed on inputs & activitiesShortage of planning time and capacityQuality of services

Better coordination between partners and planning of missions

MAKING PARIS DECLARATION WORK

Alignment of Cooperating Partner flows

Financing v/s technical input & capacity building

Alignment of technical inputs to develop PBB and integrate Global Public Goods & Global Facilities

PBB – coordinated & harmonised way to mobilise resources and achieve desired outcomes

MAKING PARIS DECLARATION WORK

Harmonisation among Cooperating Partners

Capacity Building Planning Unit in MOFED (UNDP assistance)

External assistance integrated in local structures

Changes in Cooperating Partners approach and also in administrative and hiring practice to integrate contractual workers

MAKING PARIS DECLARATION WORK

Managing for Results

PBB complemented by Performance Management System

Investment by Cooperating Partners in capacity building in PBB and PMS

Establish database of reliable consultants

M&E mechanism to assess consultants

Regional Multidisciplinary Centre of Excellence – useful tool

MAKING PARIS DECLARATION WORK

Mutual AccountabilityAnnual Business Plan consultationsTA & capacity building support v/s progressFinancial assistance v/s progress

Service to Mauritius Programme

Capacity Building Programme

Thank You