LOGOwww.themegallery.comOutcome Based Budgetingan integrated approach to public sector performance managementin Malaysia National Budget OfceMinistry of Finance Malaysia28 August 2014 Presentation outline1Performance management & udgetary reforms2Factors ta!en into consideration under OBB"#ntegrated a$$roac% to OBB using &ogic Model4 OBB im$lementation 'ourney()ritical *uccess Factors& )%allenges in im$lementing OBB2Outcome Based Budgetingan integrated approach to public sector performance managementMacroeconomic PlanningM+F,esultsBasedBudget FormulationProgram #m$lementationProgram -eli.ery/.aluation,e.enue $olicy,e.enue $olicy-et $olicy-et $olicyFormati.eFormati.eOutcome$lanningOutcome$lanning*ummati.e*ummati.e*etting National Priorities & 0oals*etting National Priorities & 0oalsProgram ,ecti1cationProgram ,ecti1cation/2$enditure Management/2$enditure Management-elegation and accountaility-elegation and accountailityPerformance BudgetingPerformance BudgetingPerformanceMonitoring & ,e$ortingPerformanceMonitoring & ,e$ortingPerformance Management in Public SectorPerformance Management in Public Sector3Budgetary Reforms in Malaysia Budgetary Reforms in Malaysia 4-etailed )ontrols & -isci$line Incremental line item budgetingPrograms & Performance Program Performance Program-Activities Performance Indicators Monitoring & EvaluationAccountaility34e2iility & delegation Disaggregated Budget Budget Ceilings ProgramAgreements Ece!tions "e!orting Monitoring & Evaluation#ntegrated A$$roac% Integration Alignment Budgeting for results "esults "e!orting Monitoring & Evaluation +raditionalPPB*MB*OBB15(6 7 15851585 7 15501550 7 201"201" 7 date Presentation outline1 #ntroduction2 Outcome Based Budgeting"#ntegrated a$$roac% to OBB using &ogic Model4 OBB im$lementation 'ourney( )%allenges in im$lementing OBB#*#9 &/:/,*:ertical alignment of national $riorities and ministry acti.itiesManaging cross cutting initiati.es)oordination of o$erating and de.elo$ment udgetsAccountaility in t%e $ulic sector and aut%ority o.er resources*ystematic monitoring and e.aluation systemFocus on outcomesWhy Change was required??Why Change was required??$0reater demand for ;uality results Need to rationalise go.ernment e2$enditure & im$ro.e $ulic sector ser.ices deli.ery 0o.ernment %as identi1ed si2 transformation le.ersori?ontal lin!ages#ntegrated udgeting+,ANFO,MA+#ON P#&&A,*OBB /N:#,ONM/N+.BB plays a /ey role in lin/ing the national transformation pillars from implementation to RES01S2%,/*@&+*Planning for outcomePlanning for outcomeBudgeting for &utcome Budgeting for &utcome M&EM&E"esults "e!orting"esults "e!orting5 National Programmes6 National Programmes10 National Programmes4 National Programmes5 National Programmes 9)reating t%e /n.ironment for @nleas%ing /conomic 0ro=t%Mo.ing to=ards #nclusi.e *ocio7/conomic -e.elo$mentKRA3-e.elo$ing and ,etaining a First7Aorld +alent BaseKRA3KRA3KRA4KRA 1KRA5KRA2KRA4KRA1KRA 1KRA 2KRA 3KRA 4 KRA 6KRA 2KRA 4KRA3KRA 1 KRA 2KRA 2KRA 1KRA 4KRA 55 National Outcomes4 National Outcomes4 National Outcomes5 National Outcomes6 National OutcomesTERAS STRATEGI 4TERAS STRATEGI 5KRA5Source! EP"Building an /n.ironment t%at /n%ances Buality of &ife+ransforming 0o.ernment to +ransform MalaysiaSTR# T$R"ST 5 STR# T$R"ST 1 STR# T$R"ST 2 STR# T$R"ST % STR# T$R"ST 45National ,esults Frame=or!*trategic +%rusts10t% Malaysian Plan C,As10t% Malaysian Plan OutcomesNational ProgrammesMiniD ProgD n MinD ProgD "Acti.ity1Acti.ity2Acti.ity "Acti.ity4Acti.ity(Acti.ity 8Acti.ity 6Acti.ity nNational ,esults Frame=or! EN,FFMinistry le.el ,esults Frame=or!Outcome "Outcome nOutcome 2MinD ProgD 1 MinD ProgD 2Outcome 1MinistryActi.ity 8Programme7Acti.ity *tructure*GActi.ityPro'ect*u7Acti.ityPro'ect*u7Acti.ityPro'ect10Activity levelActivity Outcome KPIActivity Output PIActivity levelActivity Outcome KPIActivity Output PINational levelNatioal !trategic "hru#t#National Outcome Key Performance Indicator Natioal $rogrammeMinistry levelMinistrys Outcome Key Perf. Indicator $rogrammeMinistry levelMinistrys Outcome Key Perf. Indicator $rogrammeProgramme levelProg. Outcome KPIActivityProgramme levelProg. Outcome KPIActivityProgramme levelProg. Outcome KPIActivityProgramme levelProg. Outcome KPIActivityActivity levelActivity Outcome KPIActivity Output PIVertical alignmentsHorizontal linkagesIntegrated budgetsActivity levelActivity Outcome KPIActivity Output PIActivity levelActivity Outcome KPIActivity Output PIActivity levelActivity Outcome KPIActivity Output PIBudgets are

uiltActivity levelActivity Outcome KPIActivity Output PIActivity levelActivity Outcome KPIActivity Output PIActivity levelActivity Outcome KPIActivity Output PI!ntegrated approach under .BB!ntegrated approach under .BBBudgets are

uilt''N,FM/*PPMFAPMF Presentation outline1 #ntroduction2 Outcome Based Budgeting"#ntegrated a$$roac% to OBB using &ogic Model4 OBB im$lementation 'ourney( )%allenges in im$lementing OBB'2#m$lementation #m$lementation A%en Planning A%en Planning 1inear 1ogic Model#NP@+#NP@+P,O)/**P,O)/**O@+P@+O@+P@+Hand out$uts are assemled ased on in$uts Hand out$uts are assemled ased on in$uts Ae %a.e a tendency to focus on #n$uts Ae %a.e a tendency to focus on #n$uts O@+)OM/O@+)OM/+%e focus s%ould e on Outcomes+%e focus s%ould e on OutcomesOutcomes are t%e c%anges =e ring to a $rolem or need situationOutcomes are t%e c%anges =e ring to a $rolem or need situation'3N//-* & P,OB&/M*ANA&I*#*N//-* & P,OB&/M*ANA&I*#*O@+)OM/*O@+)OM/*Addressing Needs and Prolems .utcome #eeds3Problem riangulation'4JANUARYCall Circularfor New Year EstimatesJANUARYCall Circularfor New Year EstimatesMarchReceive submissionsand BRO makesIndividual StudyMarchReceive submissionsand BRO makesIndividual StudyAPRIL Preliminary AnalysisAPRIL Preliminary AnalysisAencies Pre!areand Submit NewYear EstimatesAencies Pre!areand Submit NewYear EstimatesMAY-JULYBudet e"aminationMAY-JULYBudet e"aminationNOVEMBER#etermination of E$ by $reasury

NOVEMBER#etermination of E$ by $reasury

SEPTEMBERBudet #ocumentPrinted and submittedto ParliamentSEPTEMBERBudet #ocumentPrinted and submittedto ParliamentFEDERAL TREASURY(NATIONAL BUDGET OFFICE) FEDERAL TREASURY(NATIONAL BUDGET OFFICE)BUDGET CYCLE

BUDGET CYCLE

SEPTEMBER-DECEMBERParliament #ebates andA!!roves New Year BudetSEPTEMBER-DECEMBERParliament #ebates andA!!roves New Year BudetBudet E"ecutionby AenciesBudet E"ecutionby AenciesEND OF DECEMBER%inister of &inance issues'arrant of E"!enditureEND OF DECEMBER%inister of &inance issues'arrant of E"!enditureJULY - AUGUSTA!!roval of New Year Estimates by t(e %inister of&inance and CabinetJULY - AUGUSTA!!roval of New Year Estimates by t(e %inister of&inance and Cabinet#isbursement)Re!ortinby Accountant *eneral#isbursement)Re!ortinby Accountant *eneral Presentation outline1Performance management & udgetary reforms2Factors ta!en into consideration under OBB"#ntegrated a$$roac% to OBB using &ogic Model4 OBB im$lementation 'ourney( )%allenges in #m$lementing OBB'$16Develo!ed &BB Conce!tual (rame)or*A)areness ProgramsCa!acit+ Building ,-rainers and ".s/ Develo!ed Initial "esults (rame)or* for all MinistriesContinuous data 0ualit+ re1nement(ocus on monitoring & !erformance re!ortingInitiate C&E & evaluation c+cle to be o!erationalBudget !re!2 for 23'$ to be full+ &BB com!liantIntegrated !erformance monitoring & re!orting to be(ull im!lementation of&BB recommendations including full s+stems and institutions2010 & 20112012&201%2014 & 20152016 '&BB Polic+ Circular"oll out of &BB to all ministries ,Parallel in 23'2/Data validation & re1nement ,selected Min initiative/4trengt5ening t5e role of M&IC in PlanningP$ASE 1.BB !mplementation 4ourneyP$ASE 2 Presentation outline1Performance management & udgetary reforms2Factors ta!en into consideration under OBB"#ntegrated a$$roac% to OBB using &ogic Model4 OBB im$lementation 'ourney()ritical *uccess Factors & )%allenges in #m$lementing OBB'%)ritical *uccess FactorsPerformance information must e demand dri.en y sta!e%olders&eaders must em$o=er t%eir team and e2ecute strategy B,Os must focus on $rogram $erformance and accountaility *ustainale ca$acity uilding,e$ort on $erformance t%roug% eJecti.e monitoring and e.aluationO@+P@+*#NP@+*P,O)/** O@+)OM/*156nderstanding t5e conce!ts "ole of management in strateg+ building 7ualit+ of information in t5e results frame)or*Culturalising !erformance"ede1ning t5e roles of budget revie) o8cers 9 focus on !erformance & accountabilit+4ustainable ca!acit+ building and fre0uent movement of &BB trainers Identif+ing t5e rig5t I- solution and translating business re0uirements into an I- s+stemChallenges in implementing .BBChallenges in implementing .BB23MyResults5 Performance Management *ystemMinistryGAgencyPlanningBudgetingMonitoring/.aluation,e$orting-emand Analysis21than/ youterima /asihmyresults6treasury7go"7my