“RESULTS ORIENTED BUDGETING REFORMS: MALAYSIA & SINGAPORE” WORLD BANK

Download Report

Transcript “RESULTS ORIENTED BUDGETING REFORMS: MALAYSIA & SINGAPORE” WORLD BANK

“RESULTS ORIENTED BUDGETING REFORMS: MALAYSIA & SINGAPORE” WORLD BANK Washington, DC 15 JULY, 1999 ARUNASELAM RASAPPAN , PhD.

EXECUTIVE DIRECTOR

ARTD

(Malaysia) Management, Evaluation, & Research Associates Kuala Lumpur

(c) 1999 Arunaselam Rasappan

THE SOCIO-ECONOMIC ENVIRONMENT in MALAYSIA/ SINGAPORE

(c) 1999 Arunaselam Rasappan

BUDGET REFORMS & NATIONAL STRATEGIES / AGENDA _________________________________________ * DYNAMIC SOCIO-ECONOMIC ENVIRONMENT * SOCIO-ECONOMIC DEVELOPMENT * NATION-BUILDING * GLOBALIZATION * COMPETITIVENESS * ENABLING MECHANISMS

(c) 1999 Arunaselam Rasappan

BUDGET REFORMS & OTHER CAUSAL FACTORS _________________________________________ * RISING EXPECTATIONS * TREND TOWARDS RIGHTSIZING * SCARCE RESOURCES * NEW PUBLIC MANAGEMENT INITIATIVES * INCREASING DEMAND FOR GREATER ACCOUNTABILITY

(c) 1999 Arunaselam Rasappan

THE ACCOUNTABILITY AGENDA _________________________________________ “PROGRAM RESULTS” “SERVICE QUALITY” “MORE WITH LESS” “VALUE FOR MONEY” “RESOURCES OPTIMIZATION” “IMPROVED ACCOUNTABILITY”

(c) 1999 Arunaselam Rasappan

BUDGET REFORMS

(c) 1999 Arunaselam Rasappan

BUDGET REFORMS

* LINE-ITEM BUDGETING (Pre 60s) * CENTRALIZED * DETAILED CONTROL * INCREMENTAL * REACTIVE BUDGETS * PROGRAM PERFORMANCE BUDGETING SYSTEM (PPBS) (1960s TO 1990s) * PROGRAM/ACTIVITY BASED * PERFORMANCE FOCUS * DETAILED CONTROL * CENTRALIZED

(c) 1999 Arunaselam Rasappan

BUDGET REFORMS

PERFORMANCE-ORIENTED BUDGETING (1990s) * MODIFICATION TO PPBS * PROGRAM / ACTIVITY BASED * AGGREGATE CONTROL * GREATER FLEXIBILITY * PERFORMANCE BASED * RESULTS FOCUS * PERFORMANCE TOOLS

(c) 1999 Arunaselam Rasappan

BUDGET REFORM SEQUENCING ISSUES

STAGE OF SOCIO ECON DEV’T

RESOURCE AVAILABILITY

RESOURCE CAPACITIES

CULTURAL & VALUE SYSTEMS

FOCUSSED & STRUCTURED

PRACTICAL EXAMPLES

TECHNICAL ASSISTANCE

LEADERSHIP & VISION

(c) 1999 Arunaselam Rasappan

ASSOCIATED PUBLIC SECTOR REFORMS

(c) 1999 Arunaselam Rasappan

DRIVERS OF OTHER PUBLIC SECTOR REFORMS & FOCUS

CRITICAL DEVELOPMENT MECHANISMS * CHANGE AGENTS * DEV’T FACILITATORS

GLOBAL COMPETITIVENESS * MALAYSIA INC.

* CHANGE AGENTS * GROWTH FACILITATORS

CAPACITY & CAPABILITY BUILDING

PUBLIC SERVICE FOCUS

(c) 1999 Arunaselam Rasappan

ASSOCIATED PUBLIC SECTOR REFORM INITIATIVES

PRODUCTIVITY IMPROVEMENTS

TQM

ISO 9000

QUALITY IMPROVEMENTS

CONTINUOUS IMPROVEMENTS

PERFORMANCE REPORTING

INNOVATIONS IN GOVERNMENT

(c) 1999 Arunaselam Rasappan

ASSOCIATED PUBLIC SECTOR REFORM INITIATIVES

ASSET MANAGEMENT

COSTING OUTPUTS/ACTIVITIES

CLIENT CHARTERS

SERVICE RECOVERY

COUNTER SERVICE

COMPLAINTS HANDLING

PERFORMANCE BUDGETING

(c) 1999 Arunaselam Rasappan

LINKAGE BETWEEN BUDGET REFORMS & MANAGEMENT REFORMS

CRITICAL ROLE OF MANAGEMENT REFORMS

LINK WITH NATIONAL DEV’T

LINK WITH ECON. GROWTH

LINK WITH SERVICE QUALITY

MISSING LINKS WITH BUDGET REFORMS

INTEGRATED PERFORMANCE MANAGEMENT FRAMEWORK

(c) 1999 Arunaselam Rasappan

DIFFICULTIES IN ADOPTING AN INTEGRATED PERFORMANCE MANAGEMENT FRAMEWORK

LACK OF PROVEN AND WORKABLE MODELS

INTRICACIES & DIFFICULTIES

INABILITY OF POLICY-MAKERS AND PROGRAM MANAGERS

LACK OF RESOURCES

LACK OF EXPOSURE AND GUIDANCE

(c) 1999 Arunaselam Rasappan

The

Results-Oriented Budgeting

System (MBS/PBS)

(c) 1999 Arunaselam Rasappan

THE RBB SYSTEM

IMPLEMENTED IN 1990 (1996)

BASED ON THE PPBS (1969)

NOW INTEGRATED WITH KEY ELEMENTS OF THE PPBS, ZBB, AND MBO

BASED ON THREE MAJOR ACCOUNTABILITY TYPES

“LET MANAGERS MANAGE & MAKE MANAGERS MANAGE”

(c) 1999 Arunaselam Rasappan

THE RBB SYSTEM

TRUST & EMPOWERMENT

ACCOUNTABILITY FOR FLEXIBILITY

PERFORMANCE AGREEMENTS BETWEEN CEO & MINISTRY OF FINANCE

EXPENDITURE TARGETS BASED ON THREE YEAR BUDGET TRENDS & BUDGET FORMULA

(c) 1999 Arunaselam Rasappan

THE RBB SYSTEM

TREATMENT OF CURRENT POLICIES, NEW POLICIES, & ONE-OFFS

PERFORMANCE AGREEMENT & ANNUAL REPORTING

VARIANCE ANALYSIS & EXCEPTIONS REPORTING

EFFICIENCY DIVIDEND

“THRESHOLD” OR EXCESS CLAUSE

(c) 1999 Arunaselam Rasappan

THE PERFORMANCE MANAGEMENT FRAMEWORK

(c) 1999 Arunaselam Rasappan

THE MISSION & PiL

STRATEGIC PLAN

GOALS & OBJECTIVES

PERFORMANCE PLAN

PERFORMANCE MANAGEMENT ELEMENTS

PERFORMANCE REPORTING

PERFORMANCE EVALUATION

USE OF PROGRAM LOGIC

(c) 1999 Arunaselam Rasappan

Program Logic & Linkages Model (ProLL Model)

CLIENTS NEEDS / PROBLEMS POLICIES Needs Fulfillment / Problem alleviation (rate / level) PROGRAM/ ACTIVITY Mission Goals OBJECTIVE INPUT (RESOURCES) Objective Achievement (rate / level ) PROCESS OUTPUT OUTCOME

 Arunaselam Rasappan (1992)

BUDGET REFORM IMPLEMENTATON STRATEGIES * STRATEGIC PLANNING * PREPARATORY WORK * INTER-AGENCY COORDINATION * ENABLING MECHANISMS * PILOT TESTING * STAGGERED IMPLEMENTATION * STAGGERED INTENSITY

(c) 1999 Arunaselam Rasappan

BUDGET REFORM IMPLEMENTATON - MISSING LINKS * OWNERSHIP & COMMITMENT FROM ALL LEVELS * PERFORMANCE MEASUREMENT SYSTEM * PERFORMANCE INFORMATION SYSTEM * INTEGRATION WITH OTHER MANAGEMENT REFORMS * INTER-AGENCY COORDINATION

(c) 1999 Arunaselam Rasappan

BUDGET REFORM & POLICY MAKING * MAJOR MISSING LINK * INTRICACIES OF POLITICAL CONSIDERATIONS * POLITICAL V/S ADMINISTRATIVE DRIVEN * POLICY CONSIDERATIONS AS KEY COMPONENT OF BUDGETING * NEED FOR INTEGRATION BETWEEN PERF. MNGT, PERF. EVALUATION & POLICY-MAKING

(c) 1999 Arunaselam Rasappan

BUDGETING, FISCAL DISCIPLINE, ALLOCATIVE EFFICIENCY & OPERATIONAL EFFICIENCY

(c) 1999 Arunaselam Rasappan

BUDGETING, FISCAL DISCIPLINE, ALLOCATIVE EFFICIENCY & OPERATIONAL EFFICIENCY * IMPROVED FISCAL DISCIPLINE * Budget Discipline * Resource Predictability * Improved Planning * Reduced Supplementaries * IMPROVED OPERATIONAL DISCIPLINE * Improved financial mng’t * Less budget overruns * Focused Expenditures * Better value-for-money * Reduced Wastage

(c) 1999 Arunaselam Rasappan

BUDGETING, FISCAL DISCIPLINE, ALLOCATIVE EFFICIENCY & OPERATIONAL EFFICIENCY * LIMITED ALLOCATIVE EFFICIENCY * Reasonable success at agency levels * Limited success at politiical levels * Room for improvement

(c) 1999 Arunaselam Rasappan

BUDGETING EFFORTS TOWARDS IMPROVING EFFICIENCY GOVERNMENT COMMITED TOWARDS IMPROVING EFFICIENCY: * ENHANCED STRATEGIC PLANNING * PERFORMANCE PLANNING * MINIMIZING AD-HOC BUDGETS * LINKING RESOURCES & POLICY * MINIMIZE ONE-OFFS * EXPENDITURE CAPS * BALANCED BUDGET APPROACH * REDUCED ENTITLEMENTS & CHARGED EXPENDITURES * EXCEPTIONS REPORTING * COST CONSCIOUSNESS * FLEXIBILITY FOR ACCOUNTABILITY

(c) 1999 Arunaselam Rasappan

ACCOUNTING REFORMS

(c) 1999 Arunaselam Rasappan

ACCOUNTING REFORMS

MINIMAL LINKS WITH BUDGET REFORMS

ACCOUNTING REFORMS FROM 1960s

MAJOR REFORMS LINKED BUT OTHERS WERE PIECEMEAL

MAJOR ACCOUNTING REFORMS LINKED TO BUDGETS:

   

MODIFIED CASH ACCOUNTING COST INFORMATION DECENTRALIZED ACCOUNTING INTEGRATED INFORMATION

(c) 1999 Arunaselam Rasappan

ACCOUNTING REFORMS

CASH ACCOUNTING

MODIFIED CASH ACCOUNTING

SELF-ACCOUNTING AGENCIES

DECENTRALIZATION TO STATES AND AGENCIES

INTEGRATED REPORTING

MICRO-ACCOUNTING

ELECTRONIC GOVERNMENT

(c) 1999 Arunaselam Rasappan

BUDGETING, FISCAL RISKS & CONTINGENT LIABILITIES

SPECIAL CIRCUMSTANCES OF DEVELOPING COUNTRIES

TRANSPARENCY ISSUES IN BUDGETING

COMPLIANCE WITH ACCOUNTING PRINCIPLES

LINKAGE WITH BUDGETING PRACTICES

(c) 1999 Arunaselam Rasappan

TIME FRAMEWORK FOR BUDGETING

(c) 1999 Arunaselam Rasappan

TIME FRAMEWORK FOR BUDGETING

ANNUAL BUDGETING

PERFORMANCE BUDGETS & MULTI-YEAR FOCUS

ELEMENTS OF MULTI-YEAR PLANNING & CEILINGS

MODIFIED MULTI-YEAR BUDGETING WITH ESTIMATED RESOURCE CERTAINTY

FORWARD ESTIMATES - DEVT V/S OPERATING BUDGETS

(c) 1999 Arunaselam Rasappan

IMPACT OF BUDGET REFORMS MAJOR REFORM FEATURES & IMPACT

ACCOUNTABILITY FOR FLEXIBILITY

ANNUAL BUDGET CEILINGS

PROGRAM AGREEMENTS & PERFORMANCE FRAMEWORKS

FUNDS TRANSFER FLEXIBILITY

EFFICIENCY DIVIDENDS

PERFORMANCE MEASUREMENT

PROGRAM EVALUATION & POLICY-MAKING PROCESSES

(c) 1999 Arunaselam Rasappan

“RESULTS ORIENTED BUDGETING REFORMS: MALAYSIA & SINGAPORE” WORLD BANK Washington, DC 15 JULY, 1999 ARUNASELAM RASAPPAN , PhD.

EXECUTIVE DIRECTOR

ARTD

(Malaysia) Management, Evaluation, & Research Associates Kuala Lumpur

(c) 1999 Arunaselam Rasappan