results based budgeting (rbb) in australia - evolution and practice
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Results Based Budgeting (RBB) in Australia - Evolution and Practice. John Martin Director Development Initiatives. Results Based Budgeting in Australian Government. Introduction A brief history of Australian government budget reforms: 4 periods 1976 -1983 1983-1996 1996 – 2007 - PowerPoint PPT PresentationTRANSCRIPT
John MartinDirector
Development Initiatives
Sustainable Organization Change
Introduction A brief history of Australian government budget reforms:
4 periods◦ 1976 -1983◦ 1983-1996◦ 1996 – 2007◦ 2007 - present
Evaluation Strategy 1987: led by Dept of Finance (budget agency)
Results based budgeting ◦ introduced in 1999-2000 Australian Government Budget ◦ Outputs, Outcomes and Performance indicators ◦ Accrual accounting introduced at same time
2008: Operation Sunlight review – aims to increase openness, transparency & governance
Evolving “best practice”
Sustainable Organization Change
Personal career as◦ development practitioner◦ aid analyst in AusAID◦ budget reform from a Dept of Finance
perspective Results based budgeting Monitoring and Evaluation strategy
Sustainable Organization Change
Rationale
Accountability Decision making Learning
Sustainable Organization Change
Reform is not new ◦ Been underway since 1976 ◦ 4 key periods◦ Linked to politics and state of economy◦ Not a smooth process◦ Budget reforms part of broader public sector
reforms◦ Paradigm shift arising from global economic crisis
Sustainable Organization Change
1976 Royal (Coombs) Commission
Three themes Responsiveness to the elected government Improved efficiency and effectiveness,
including through more results-based management and less prescription
Community participation
Sustainable Organization Change
1983 Reforming the Australian public service
Difficult economic times From compliance to performance control Program budgeting – specify program
objectives and targets for appropriations Flexibility in public sector budgets 1987 evaluation strategy: centrally
driven by Department of Finance and budget processes
10/10/2009 7
Sustainable Organization Change
1996 – 2006 Results Based Budgeting: Outputs &
Outcomes Accrual based budgeting Less prescriptive processes More private sector engagement and
processes Devolved responsibility to Agencies
10/10/2009 8
Sustainable Organization Change
2006/7 to present Operation sunlight – reform agenda for budget and
financial management June 2008 Murray report – review budget
transparency Dec 2008 Government response to Murray Report Reforms coordinated by Department of Finance and
Deregulation (DOFD); DOFD & Treasury responsible Agency responses underway e.g. 2009-10 Portfolio
Budget Statements introduce Programs 6-pronged Reform agenda is on-going process
10/10/2009 9
Sustainable Organization Change
What is it?◦ Government’s reform agenda to improve the
openness and transparency of public sector budgetary and financial management and to promote good governance practices
Key objectives The Murray report Government response
Sustainable Organization Change
Tightening the outcomes and outputs framework
Changing the Budget Papers to improve their reliability and usefulness
Improving the transparency of Estimates Expanding the reach of budget reporting Improving the inter-generational reporting Improving the financial framework
Sustainable Organization Change
Need to improve transparency and accountability of the Budget
Address problems with Outcomes Need for better targets/results Poor descriptions of appropriations Need better setting out of resource use Need for Program reporting Better treatment of budget implications on
future generations
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Sustainable Organization Change
ImplementingOperation Sunlight
OutcomeFramework
Transparencyof Estimates
BudgetReporting
Long Termand
IG Reporting
Improving the Financial
Framework
SP1.1
Outcomes Review*
SP1.2
Targets / Results*
SP 1.3
Appropriation Descriptions*
SP 1.4
Resource Statement
SP 3.1
Compact of 1965
SP 4.1
Special Accounts
SP 4.3
Contingency Reserve
SP 6.1
Implementing non-cash
SP 6.2
Net Cost of Services
SP 6.3
AFM
ImprovingBudget Papers
SP 2.2
Program Reporting*
SP 2.3
Accounting Harmonisation
Redesign of the PAES / AR
SP 6.4
Other Appropriation
Issues
SP 2.5
Redesign the PAES / Annual Report
Implement AgreedMurray Recommendations
andIG Reporting
Improving the Financial
Framework
Outcomes Review*
Targets / Results*
Appropriation Descriptions*
Resource Statement
Compact of 1965 Special Accounts
Contingency Reserve
Implementing non-cash
Net Cost of Services
AFM
ImprovingBudget Papers
Program Reporting*
Accounting Harmonisation
Redesign of the PAES / AR
Other Appropriation
Issues
Redesign the PAES / Annual Report
Implement AgreedMurray Recommendations
Long Term Modelling
Sustainable Organization Change
Sustainable Organization Change
Education, Employment & Workplace Relations Portfolio (formerly DEST & DEWR)
Outcome 3: Higher education Outcome 3: A growth in skills, qualifications
and productivity through funding to improve teaching quality, learning and tertiary infrastructure, international promotions of Australian education and training sectors, and partnerships with industry
Sustainable Organization Change
RBB is part of integrated measure of reforms Responsive to changes in government and
ideology Single budgetary and reporting system Has champions Flexible Agreement on objectives & performance
information Clever identification of intermediate outcomes
and PI Adequate resourcing Human resource development Carrot and stick