From Program to Performance Budgeting The Challenge for Emerging Market Economies

28 Pages Posted: 3 Feb 2006

See all articles by Jack Diamond

Jack Diamond

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: June 2003

Abstract

Many emerging market economies are trying to improve their budget processes and move to performance-based budgeting. This paper first reviews the evolution of the "new" performance budgeting model, increasingly being applied in industrial countries. By identifying its main components, the tasks faced by emerging market economies when converting their present budget systems to this model are determined. It is recognized that this conversion will not be easy and wall require four major reform elements. First, any existing program structure must be set in the wider context of strategic budget planning and medium-term budget frameworks. Second, this typically involves redesigning and refining existing program structures. Third, existing budget-costing systems and associated skills will probably need to be improved. Fourth, and perhaps most difficult, a new system of accountability and budget incentives needs to be introduced. For emerging market economies, these should be viewed as the prerequisites for a successful introduction of the new performance-budgeting model.

Keywords: Program budgeting performance budgeting budget reform

JEL Classification: M4 E6 D7 P2

Suggested Citation

Diamond, Jack, From Program to Performance Budgeting The Challenge for Emerging Market Economies (June 2003). IMF Working Paper, Vol. , pp. 1-28, 2003. Available at SSRN: https://ssrn.com/abstract=880208

Jack Diamond (Contact Author)

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

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