IntroductiontoProgramBudgeting.pptVIP

Introduction to Program Budgeting Outline What is program budgeting and what is it good for? Program budgeting in Korea: a case study of the Ministry of Environment Some general considerations for successful implementation What is program budgeting and what is it good for? Defining Program Budgeting Resource allocation based on priorities Allocating budgetary resources according to government policy objectives and priorities Focus on organizational objectives Focus on outputs/outcomes Allocate expenditure by program Assess results based on objectives Applicable for cost-benefit analysis Key Elements of Program Budgeting Sets programs as the basis for budget appropriations Focus shifts from line items to programs Basis for facilitating a cost allocation system Prompts line ministries to define objectives and match activities and resources to achieving them Usually tied to their legal mandate Tool for granting greater autonomy and responsibility In line with transparency and accountability Benefits of Program Budgeting Basis for supporting enhanced fiscal discipline Facilitates decision-making for resource allocation Organizes budget around government policy priorities Acts as a mechanism for focusing on operational efficiency and performance Enhances transparency and is user friendly for legislature and general public Enhances control and accountability for the CBO Affords greater autonomy and flexibility to spending agencies Program Budgeting in Korea A Case Study of the Ministry of Environment MoE’s Organizational Structure General Principles (1) Align the budget classification with that of the NFMP Integrate a mid-term perspective into the annual budget Keep programs within the organizational structure Clarify lines of accountability and program management Combine all activities according to program objectives Regardless of revenue source General Principles (2) Determine appropriate scope and number of programs Reflect ministry’s role and areas of responsibilit