Good morning !
PAGBA bago
budget traditions
budget structure
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PERFORMANCE-INFORMED BUDGETING
For FY 2014 Adoption
OUTLINEo What is a Performance-Informed Budgeting?
o Why shift to Performance-Informed Budgeting? current Org’l. Performance Indicator Framework
(OPIF)
major features of the new budget template
o IMF Template
o DBM Template
o Considerations of the DBM Template
New Budget
Directions
New Budget
Traditions
DBM as a Driver of Reforms
• Re-introduction of the Zero Based Budgeting (ZBB)
• Mandatory Fiscal Transparency
• Faster and Efficient Budget Execution• Early Procurement• Account Management Teams (AMTs)• DPWH as principal infra agency
• Tighter Performance Management• OPIF• Results-based Performance Mgt. System• Performance-based Incentives
• Leveraging Technology thru GIFMIS and PhilGEPS
OLD
•Re-enactment of the previous year’s GAA
•Preponderance of lump-sum funds in the budget
•2 years validity of appropriations
•Several release documents
NEW
•Early enactment of the GAA by Congress
•Disaggregation of lump-sum funds in the budget
•1 year validity of appropriations (2013)
•GAA as release document (2014)
•New Face of the Budget or Performance-Informed Budget
What is a Performance-Informed
Budgeting?
IMF TECHNICAL ASSISTANCEON
“STRENGTHENING PERFORMANCE BUDGETING”
February 7 – 20, 2013
to advise DBM on developing a performance oriented and improved budget structure to make it more comprehensible and reader friendly.
Performance-Informed Budgeting
“ A set of integrated processes that aims to improve the efficiency and effectiveness of public expenditure by linking the funding to the results, making systematic use of performance information, although not solely, in resource allocation and management”
(IMF, TA. 2013)
Why Shift to Performance-
Informed Budgeting ?
General Appropriations
Act (GAA)
OPIF Major Final
Outputs/ Indicators
Present Scenario
OPIF Strength and Weakness
•OPIF is a building block to performance budgeting, but has limits.
•The strength of OPIF over the past budgeting system is also its weakness:
its performance information is solely output focused, lacks outcome information thus preventing analysis on the effectiveness of the programs.
•Output focus provides ease in establishing accountability but might displace goals of departments and their intended impact on the wider society
(IMF, TA, 2013)
OPIF Strength and Weakness (cont.)
•It could only focus on easy measurable outputs, but cross-cutting issues could be ignored
•Or worse, output-alone focus may lead to perverse incentives to program managers
•Lacks clarity between concepts of MFO, program and activity
(IMF, TA, 2013)
2014
2014
Features Performance-Informed Budget
•It should integrate both strategic planning and performance information:
•Program allocations linked to outputs and outcomes measures
•Department/agency mandates, vision, mission, objectives and sector outcomes (MTPDP/KRAs) are presented
(IMF, TA, 2013)
•Simpler presentation: •appropriations are at the program level•Allows agency greater flexibility in budget utilization, realignment
•Improves budget predictability: •two out years FEs will be shown
Features Performance-Informed Budget
(IMF, TA, 2013)
IMF TEMPLATE
IMF Proposed Budget Structure
Sec 1 - STRATEGIC OBJECTIVES
VISION:
MISSION:
KRA:
PDP SECTOR OUTCOME:
IMF Proposed Budget Structure
Sec. 2 - Program Expenditure
No. Program(MFO)
2012 Actual
Exp
2013 Approved
Budget
2013 Revised Estimate
2014 Budget
Estimates
2015 Forward
Estimates
2016 Forward
Estimates
001 Strategic Management Administration
01 • PS
02 • MOOE
03 • Capital-Domestic
04 • Foreign Assisted Projects
002 Program A etc.
01 • PS
02 • MOOE
03 • Capital-Domestic
04 • Foreign Assisted Projects
TOTAL BUDGET ALLOCATION /CEILING
• COE
• Capital - Domestic
• Capital - Donor
Sec. 3 - STAFFING RESOURCES (Funded Positions)
TOTAL AGENCY STAFF
Sec. 4 - PROGRAM PERFORMANCE INFORMATION
KEY TASKS FOR 2014:
KEY PERFORMANCE INDICATORS
2012 Actual
2013 Estimate
2014 Planned
2015Target
2016Target
OUTPUT INDICATORS
Program A
Indicator 1
Indicator n
Program B etc.
Indicator 1
Indicator n
KEY PERFORMANCE INDICATORS
2012 Actual
2013 Estimate
2014 Planned
2015Target
2016Target
OUTCOME INDICATORS
Agency Outcomes
• Indicator 1
• Indicator n
Program Outcomes
Program A
• Indicator 1
• Indicator n
Program B etc.
• Indicator 1
• Indicator n
National Budget Memorandum 117 dated March 1, 2013
Adoption of the Performance-Informed
Budget Structure for the NEP/GAA
Modifications: Limit disruptions, without sacrificing information
IMF Template
• Translation of ‘Programs’ as defined by the IMF to MFOs
– MFO transitioning into program statements
• Treatment of GASS/STO and Projects (locally funded/FAPs)
– Strategic Management Admin.
(SMA instead of GASS & STO)
– Projects were allocated across Programs (not shown)
• By Allotment Class
DBM Template
•Use MFOs instead of ‘Programs’
- GASS ) - STO ) maintain the present
•Specific Projects are presented in the template
•By Allotment Class / Object
•Add Financial Expenses as 4th expenditure classification (if applicable)
Cont.. DBM ModificationsIMF Template
•Presentation in the budget docs:
– PAPs under the MFOs
– Details by Object of Expenditure
– Details of Staffing Resources
•Presentation of a 5-year Expenditure Program (2012-2016) in the NEP
DBM Template
- Projects and Activites to be presented in separate Volume
- Details by Object of Expenditure to be reflected in the BESF- Staffing Summary maintained as a separate document
•Presentation of a 3-year Expenditure Program (2012-2014) in the NEP, excluding the following:
– CY 2013 Revised Estimate– 2 out years for FEs (2015 & 2016)
•Expenditure Program (2014 only)
DBM TEMPLATE
DBM- Modified Budget Structure Template(NAME OF DEPARTMENT)
(NAME OF AGENCY)
STRATEGIC OBJECTIVES
MANDATE(source document – Agency Charter)
VISION: (source document – Citizen’s Charter)
MISSION: (source document – Agency Charter)
KEY RESULTS AREAS (source document – EO 43)
SECTOR OUTCOME:
(Updated PDP statement, if available or updated OPIF Logframe)
ORGANIZATIONALOUTCOME:
DBM- Modified Budget Structure TemplateSECTION 1: EXPENDITURE PROGRAM
(in pesos)
No. / Code
GASS / STO/ OPERATIONS /PROJECTS
2012 Actual
2013 Current
2014Proposed
General Administration and Support
PS MOOE COSupport to Operations PS MOOE COOperations /1 PS MOOE COProjects /2 PS MOOE CO
TOTAL AGENCY BUDGET PS MOOE CO
DBM- Modified Budget Structure Template
STAFFING SUMMARY
TOTAL STAFFING 2012 2013 2014
Total Number of Authorized Positions
Total Number of Filled Positions
DBM- Modified Budget Structure TemplateSECTION 1: EXPENDITURE PROGRAM
OPERATIONS BY MFO (please specify) /1
PROPOSED 2014
PS MOOE CO TOTAL
MFO 1
MFO 2
MFO 3
MFO 4
PROJECTS(specify the name of
projects) /2
PROPOSED 2014
PS MOOE CO TOTAL
Locally-Funded Foreign-Assisted
SECTION 2: EXPENDITURE PROGRAM BY CENTRAL/REGIONAL ALLOCATION(in pesos)
DBM- Modified Budget Structure Template
REGION PS MOOE CO TOTALCentral Office
Regional Allocation (net of CO):
NCR
Region I
Region II
Cordillera Administrative Region
Region III
Region IV-A
Region IV-B
Region V
Region VI
Region VII
Region VIII
Region IX
Region X
Region XI
Region XII
Region XIII
ARMM
TOTAL AGENCY BUDGET
DBM – Modified Budget Structure Template
SP No. 1
SP No. 2
SP No. 3
(other SPs)
SECTION 3: SPECIAL PROVISIONS
DBM-Modified Budget Structure Template
KEY STRATEGIES FOR 2014
MFO / PIs 2014 TargetsMFO 1: Performance Indicator No. 1 Performance Indicator No. 2 Performance Indicator No. 3
MFO 2 Performance Indicator No. 1 Performance Indicator No. 2 Performance Indicator No. 3
MFO 3 Performance Indicator No. 1 Performance Indicator No. 2 Performance Indicator No. 3
SECTION 4: PERFORMANCE INFORMATION
Considerations on the New Budget Structure
Considerations on the New Budget Structure (cont.)
Dir. Cita P. MahinayBTS, DBM
PAGBA - April 5, 2013