Sequencing and Pacing of the Austrian Federal Budget Reform

Veronika MeszaritsAdvisor Budget Reformveronika.meszarits@bmf.gv.at

OECD Network on Performance and Results, Paris, 27 Oct. 2008

2

A comprehensive reformimplemented in 2 stages

Result-oriented management of

state bodies

Performance Budgeting

New budget structure: „global

budgeting“

Accrual accounting and

budgeting

As of 2009 – macro level

As of 2013 – micro level

• MTEF (legally binding medium term expenditure framework)

• Full carry-forward possibilities for line ministries without earmarking

3

Sequencing and pacing of the reform

• Time dimension: “big bang” 2009 & 2013 with sufficient phasing-in

• Conceptual dimension: legal framework no way back!

• Strategic dimension: getting key players on board, particularly political level

OECD Network on Performance and Results, Paris, 27 Oct. 2008

4

The conceptual dimension –“no way back”

• Both stages of the Budget Reform require an amendment of the legal framework

Necessary Legal Amendments

Adoption

1st stage as of 2009

ConstitutionDec. 2007: Unanimous decision

Budget LawDec. 2007: Unanimous decision

2nd stage as of 2013

ConstitutionDec. 2007: Unanimous decision

Budget Law Planned for 2010OECD Network on Performance and Results, Paris, 27 Oct. 2008

5

The strategic dimension – getting key players on board

• MoF = Director(ate) General Budget: Reform driver and standard setter

• Politics and Parliament: - “Advisory Council Budget Reform”

with parlamentarians of all political parties- Regular information/meetings MoF with Council- Keeping the reform out of the political debate

• Court of Audit: Evaluations included in budget documents

• Line Ministries: Continuous involvement, pilot projects 2011, parallel operation 2013

Cultural change takes time, continuous communication is important

OECD Network on Performance and Results, Paris, 27 Oct. 2008