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
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BUDGET REFORMS & OTHER CAUSAL FACTORS _________________________________________ * RISING EXPECTATIONS * TREND TOWARDS RIGHTSIZING * SCARCE RESOURCES * NEW PUBLIC MANAGEMENT INITIATIVES * INCREASING DEMAND FOR GREATER ACCOUNTABILITY
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THE ACCOUNTABILITY AGENDA _________________________________________ “PROGRAM RESULTS” “SERVICE QUALITY” “MORE WITH LESS” “VALUE FOR MONEY” “RESOURCES OPTIMIZATION” “IMPROVED ACCOUNTABILITY”
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BUDGET REFORMS
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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
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BUDGET REFORMS
PERFORMANCE-ORIENTED BUDGETING (1990s) * MODIFICATION TO PPBS * PROGRAM / ACTIVITY BASED * AGGREGATE CONTROL * GREATER FLEXIBILITY * PERFORMANCE BASED * RESULTS FOCUS * PERFORMANCE TOOLS
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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
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ASSOCIATED PUBLIC SECTOR REFORMS
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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
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ASSOCIATED PUBLIC SECTOR REFORM INITIATIVES
PRODUCTIVITY IMPROVEMENTS
TQM
ISO 9000
QUALITY IMPROVEMENTS
CONTINUOUS IMPROVEMENTS
PERFORMANCE REPORTING
INNOVATIONS IN GOVERNMENT
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ASSOCIATED PUBLIC SECTOR REFORM INITIATIVES
ASSET MANAGEMENT
COSTING OUTPUTS/ACTIVITIES
CLIENT CHARTERS
SERVICE RECOVERY
COUNTER SERVICE
COMPLAINTS HANDLING
PERFORMANCE BUDGETING
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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
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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
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The
Results-Oriented Budgeting
System (MBS/PBS)
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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”
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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
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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
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THE PERFORMANCE MANAGEMENT FRAMEWORK
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THE MISSION & PiL
STRATEGIC PLAN
GOALS & OBJECTIVES
PERFORMANCE PLAN
PERFORMANCE MANAGEMENT ELEMENTS
PERFORMANCE REPORTING
PERFORMANCE EVALUATION
USE OF PROGRAM LOGIC
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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
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BUDGET REFORM IMPLEMENTATON - MISSING LINKS * OWNERSHIP & COMMITMENT FROM ALL LEVELS * PERFORMANCE MEASUREMENT SYSTEM * PERFORMANCE INFORMATION SYSTEM * INTEGRATION WITH OTHER MANAGEMENT REFORMS * INTER-AGENCY COORDINATION
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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
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BUDGETING, FISCAL DISCIPLINE, ALLOCATIVE EFFICIENCY & OPERATIONAL EFFICIENCY
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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
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BUDGETING, FISCAL DISCIPLINE, ALLOCATIVE EFFICIENCY & OPERATIONAL EFFICIENCY * LIMITED ALLOCATIVE EFFICIENCY * Reasonable success at agency levels * Limited success at politiical levels * Room for improvement
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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
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ACCOUNTING REFORMS
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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
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ACCOUNTING REFORMS
CASH ACCOUNTING
MODIFIED CASH ACCOUNTING
SELF-ACCOUNTING AGENCIES
DECENTRALIZATION TO STATES AND AGENCIES
INTEGRATED REPORTING
MICRO-ACCOUNTING
ELECTRONIC GOVERNMENT
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BUDGETING, FISCAL RISKS & CONTINGENT LIABILITIES
SPECIAL CIRCUMSTANCES OF DEVELOPING COUNTRIES
TRANSPARENCY ISSUES IN BUDGETING
COMPLIANCE WITH ACCOUNTING PRINCIPLES
LINKAGE WITH BUDGETING PRACTICES
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TIME FRAMEWORK FOR BUDGETING
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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
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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