The Rail Track Analogy

Each side of a set of railroad tracks supports a different wheel of the train

The ties between the tracks keep them coordinated

Track

TrackTies

The Rail Track Analogy

BA’s two tracks are:

Budget Formulation

and

Budget Execution

The Rail Track Analogy

The BA train never runs on only one track

The Rail Track Analogy

The ties of laws and apportionment help execution to follow formulation.

And ties of data help formulation to follow execution.

The Rail Track Analogy

Budget monitoring reports are one link between formulation and execution

Formulation

Execution

The Rail Track Analogy

Monitoring reports compare budget formulation to budget execution

Monitoring Reports

Information Ties These Tracks Together Through the Budget Year

Information Ties:• Treasury Budget

Execution Data• Site Visits• Telephone Contacts• Monitoring Reports• Formal Evaluations• Audits• News Reports

Monitoring Reports

Telephone Calls

 

Visits

Data

Audit

Examples of Formulation Activities performed by Analysts

1. Calculating the Base for an activity or program 2. Preparing and sending clear budget instructions to spending units 3. Answering questions from spending units

More Formulation Activities

4.Transmitting budget allocation ceilings

5.Reviewing formal Budget Requests

6. Analyzing appeals for more money above the allocations

More Formulation Activities

7. Devising spending options

8. Preparing materials and answering questions for Government and Parliament as they enact the new budget

The Fiscal Note Task

• Preparing cost/revenue estimates for new proposals that are made after the budget for the year has been enacted

• Many countries call this a fiscal note, because it is added to the proposal when it is officially introduced

Budget Execution Tasks

For Analysts

Making regular calls to spending units to stay informed

Checking payments system (treasury) releases of appropriated

funds

Reviewing budget change requests

• These are often done on official formats

Monitoring spending unit progress reports

• Many budget execution systems require monthly or quarterly reports of expenditures and results

Studying audits

Following media reports on programs or activities

• From newspapers, magazines, TV and Internet

Devising long term evaluations of that can be used in future years

• The analyst often seeks outside sources for these major reviews, including:

- audit reports- university studies- volunteer researchers- consultants- International

agencies

Making Field Visits