State Performance-Based Planning and Budgeting System in Kazakhstan

State Performance-Based Planning and Budgeting System in Kazakhstan Shanghai, 2011

Republic of Kazakhstan

Republic of Kazakhstan Ministry of Economic Development and Trade is the central executive agency, carrying out inter -sector and regional coordination of developing main socio-economic government policies

Ministry of Finance Of the Republic of Kazakhstan is central executive agency carrying out inter -sectors and regional coordination of developing and implementing budget and budget planning

President of the Republic of the Kazakhstan N. А. Nazarbaev (2008) «… first in the history of our country, 3 year budget will become base for the new state budget planning system. In order to do this already this year Government should: - Develop new Budget Codex; - Facilitate updating and improvement of the planning system, increase use of budget resources effectiveness…» - …Increase budget efficiency. Should reduce all expenditures not in line with social welfare of the population» .

Basic State Planning Methods Improving quality of the public services Final results of Strategic planning – reaching actual people’s needs Government agencies evaluation institutes Government agencies internal control procedures Monitoring, evaluation and control of Government agencies effectiveness via strategic plan

Basic State Planning Methods Increase Government agencies independence in decision making and their responsibility in reaching final results (targeted goals). Developing government planning logical framework: State goals (impacts) – Government agencies objectives (outcomes) – outputs - activities - inputs - budget. Transparency and accountability Improving statistics system, in particular monitoring efficiency to achieve State goals.

Republic of Kazakhstan Planning System Strategy until 2030 Стратегический план до 2020 г. Прогноз социально–экономического развития (на 5 лет) Стратегические планы государственных органов (на 5 лет) Программы (государственные, отраслевые, территориальные) Республиканский и местные бюджеты (на 3 года)

Development and Implementation of the Plans … Government Development and implementation of the plans Gov agencies – ministries, departments Local authorities – akimates discussions NGO (associations), population implementation monitoring

Republic of Kazahstan Planning System Harmonization Gov agencies strategic plan Socio-economic development framework Экономическое планирование Стратегическое планирование Бюджетное планирование Budget (national, local)

Budget inicators Socio-economic development framework compliance GA strategic plan mission financial Development plans sectors, regions control Fiscal plan Operational plan vision goals and tasks indicators Action plan Budget programes strategy Organization al structure Actual implementaion Budget planning m o n it o ri n g

Monitoring v Monitoring objective of strategic and program documents, agencies” strategic plans is implementation improvement to ensure due and timely achievement of expected results. v What is monitoring following: 1. Plan implementation process; 2. Effective use of material, labor and financial resources; 3. Achievement of the projected goals and indicators; 4. Plan implementation impacts on socio-economic development of the country v Monitoring accountability

Evaluation ØDetermining level of efficiency and effectiveness in implementation of strategic and program documents, government agencies strategic plans; ØEvaluation report. Results ØAchieving strategic plans, goals, objectives and projected indicators

In Republic of Kazakhstan Budget Codex base for performance-based budgeting (shortly PBB)is laid out.

PBB Mechanism Planning Stages Ensuing agencies activities as provision of public services to the citizens, legal entities, Government, Parliament and informal implementation of its functions Planning of agencies final results with clearly specified indicators of achieving quality services and indicators Budget resources allocations on targeted strategic goals and objectives of the agencies, disbursement of budget allocations on achieving specific impacts, indicated in strategic government agencies plans

PBB Mechanism Implementation Stages and Accountability During budget implementation stage (national and local) providing specified independence to budget program officials and increasing their responsibility in achieving projected results consistent with budget allocations Strategic plans and resultsbased budget programs reports, taking into consideration achievement of indicators During budget implementation stage (national and local) introducing internal and external results- based monitoringв system Based on the budget implementation (national and local) carrying out internal and external evaluation of government agencies performance via monitoring and analysis of indicators being achieved

Условный пример: Улучшение траспортного сообщения между регионами Цели Показатели цели (конечный результат) Развитие современной транспортной инфраструктуры Повышение доли грузовых автоперевозок Повышение конкурентоспособности автомобильного транспорта Увеличение объемов перевозок грузов Уменьшение времени в пути Задачи Показатели задач (прямые результаты) Увеличение объемов грузовых автомобильных перевозок Увеличение протяженности дорог Километраж введенных в действие дорог Программы Строительство многополосных дорог 17

Условный пример: Укрепление здоровья граждан Цель Показатели цели (конечный результат) Снижение материнской и младенческой смертности Снижение показателя материнской смертности с 46, 8 на 100 000 живорожденных в 2007 г. до 38 к 2011 году Снижение показателя младенческой смертности с 24 на 1000 родившихся живыми в 2007 г. до 14, 5 к 2011 году Задачи Показатели задач (прямые результаты) Внедрение программ, рекомендованных ВОЗ (система аудита материнской и младенческой смертности и пр. ) Программа (указать год) Разработать межведомственный план мероприятий по снижению материнской и младенческой смертности План (указать год) Выявление заболевания на ранних стадиях Увеличения показателя выявления заболевания на ранних стадиях Подготовка специалистов в области менеджмента здравоохранения Не менее 400 подготовленных специалистов в области менеджмента здравоохранения 18

Performance-Based Strategic Planning and Budgeting What is done? ü ü Strategic planning in the Government agencies Medium term budget planning Results-based monitoring Results-based evaluation What is achieved? ü Strategic, economic and budget planning harmonization ü Повышение эффективности towards «results management» , meaning ü Shift from «cost management» государственных расходов restructuring of the Government agencies activities from formal use of budget resources to achieving specific final results ü ü Improved quality of government services Improve effectiveness of budget expenditures

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