France’s performance framework: lessons
learned and perspectives
OECD
Bangkok, December 15th 2016
Marine CAMIADE, deputy director of the French budget directorate, Ministry of Economy and Finances
2
1. Characteristics of the new framework
A budget framework organized according to the main public policies
A results-oriented budget
New chain of responsibilities
2. Impact of the performance framework
In the Parliament
Inside the Government and the administration
3. Ways of improvement
Summary
3
Before 2001
A budget framework organized according to the main public policies
31 missions
122 programmes according to the main public policies
The framework set up in 2001
30 ministries
850 chapters according to the nature of appropriations
4
12 décembre 2016
Example : mission Justice
A budget framework organized according to the main public policies
Judicial system
Before: 30 chapters
- Staff expenditure
- Social contributions
- Staff allowances
-Operating expenditure
-Real estate cost
-IT cost
-Procurements...
- Capital expenditure for prisons
- Capital expenditure for the
judicial system
- Subsidies to associations
-Subsidies to the judicial training
college -Legal aid
-…
Judicial system
Prisons
Legal protection for under 18s
Access to justice and legal aid
Support for judicial policy and
related organisations
After: 5 programmes
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12 décembre 2016
■ Zero-base budgeting (“first-Euro
justification of appropriations”)
■ Performance targets and indicators
■ Cost analysis of actions
■ More autonomy given to managers
⇨ “asymmetric fungibility”
■ Presentation of achievements
A results-oriented budget
Set up in the
annual budget bill in
october
(blue documents)
Execution -
Management
Reporting (red
documents attached to
the budget review act)
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12 décembre 2016
A results-oriented budget : performance objectives and indicators
Mission
Programme Programme Programme
Action Action Action
The new budget structure
384 objectives
756 indicators
80 objectives
et 90 indicators
8 A results oriented budget : 846 indicators
SOCIAL-ECONOMIC EFFECTIVENESS (citizens’ view)
• Healthcare
• Security
• Economic development
• For example, for justice : rate of recidivism/reoffending
SERVICE QUALITY (users’ view)
•Wait time : For example : wait time to get a judgement •Satisfaction rate •Accessibility
EFFICIENCY (taxpayers’ view)
• Productivity. For example : number of cases dealt with on average by a judge.
• Unit cost.
• Administrative charges (IT, real estate, procurements…)
46%
35%
19%
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1. Characteristics of the new framework
A budget framework organized according to the main public policies
A results oriented budget
New chain of responsibilities
2. Impact of the performance framework
In the Parliament
Inside the Government and the administration
3. Ways of improvement
Summary
11 Impact - In the Parliament
Strenghts
The performance framework and the budget documentation are heavy :
more than 10 000 pages
more than 700 indicators
heavy to produce
sometimes too technical and difficult to understand
Even if poor results are obvious, it is difficult to determine the right response (do you have to increase means or on the contrary to reduce them ?)
Finally, performance results are not much used in the discussion in the Parliament and there is no direct link between them and budgeting.
Twice a year, the Parliament receives a comprehensive documentation for each public policy with :
A “zero base” justification of appropriations
Performance objectives and indicators :
Targets in october
Outturn in april
The quality and accuracy of this documentation is verified :
By the budget directorate
By the national audit office that, each year,
produces a budgetary implementation report
certifies accrual accounts.
Limits
12 Impact– In the Administration
Strenghts
It is sometimes difficult to determine who is responsible for a public policy when it implies various actors/partners.
Little interest of Parliament for public managers’action and results
Few levers to boost public employees’productivity
Performance based remuneration is barely developed (between 0 and 10 % for high civil servants ; none for other public employees)
Automatic career advancement system (connected to seniority only)
It is important to develop non financial recognition and encouragement.
The performance framework reaches all levels of administration, including operational units all over the territory
Performance indicators are used to monitorate local operational services
They can help to determine the distribution of staff or appropriations between different operational units
They can be used in the management of high civil servants
Performance indicators are used in order to set managers’objectives
Limits
13
1. Characteristics of the new framework
A budget framework organized according to the main public policies
A results oriented budget
New chain of responsibilities
2. Impact of the performance framework
In the Parliament
Inside the Government and the administration
3. Ways of improvement
Summary
14 Two main ways of improvement
Make our framework :
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1- More comprehensive = covering all public spending
2-Simple and understandable for MPs and citizens
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central government
26 %
state agencies
6 %
local authorities
20 %
social security system 48 %
1- Make our framework more comprehensive
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French public spending is split into numerous actors
16 1- Make our framework more comprehensive
Harmonizing budget frameworks and
sharing fiscal rules
2001
Central government
and state agencies
2005
Social security
2012
Local Authorities
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2012 : new
fiscal rule
(Golden rule)
17 2- Make the framework simple
■ Streamlining the framework
For the central government for example :
– Reducing the number of programmes : by 10 % over the past 10 years
– Reducing the number of indicators : by a half over the past 10 years
– should performance indicators cover all programs equally or should we take into
account some criteria
Budgetary stake ;
Ability to quantify the notion of « performance »?
■ Strenghtening the link with government priorities
– A dashboard of 10 key national indicators was set up and published for the first time last
september
■ Improving the communication on performance
– A synthesis that focuses on the main results is published every year with the budget review
act, since last year
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18 Conclusion
■ No direct link between performance and budgeting
■ But performance information is necessary
■ One tool can’t do everything : performance framework
should be simple, comprehensive and accompanied by
– Deeper spending reviews
– Binding fiscal rules
THANK YOU FOR YOUR ATTENTION
12/12/2016
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