How to Initiate a Performance Framework in Budgeting?

Switching from line-item budgeting to program-based budgeting (PBB) – a major step toward establishing a performance framework in budgeting – proves to be a lengthy process that requires to follow a clear sequenced action for reforms. Many African countries are already using Medium Term Expenditure Framework and moving toward a results-based budgeting program.

Initiating a Performance Framework in Budgeting is instrumental to shift the the entire public administration toward Managing for Development Results approaches as it touches upon key management tools and trickles down at all levels of a project or program implementation. A performance framework in budgeting requires performance indicators, a monitoring framework and the use of information to make better decision.

In a recent presentation given at the ICGFM Annual Conference given in Washington, DC, in December 2009, Pokar Khemani of the International Monetary Fund suggests an approach on how best to approach the introduction of a performance framework in budgeting. See his presentation below.