Dr. John Antony Xavier

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Programme and Performance Budgeting (PPBS)

• Dr. John Antony Xavier
• Ministry of Planning Kuwait
• June 2002

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What are we going to do?
1- Understand the usefulness of the current
budgeting system
2- See how PPBS makes the system better
3- Understand the key elements of PPBS
4- Outline the steps to introduce PPBS
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Current Budgeting System

• Allows us to

• budget our resource requirements

• account for expenditure

• prepare closing accounts

• carry out economic stabilisation

• carry out income redistribution

• It is a good system for operational budgeting
  and financial accountability

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Current Budgeting System

• Current system cannot

• allocate resources according to
• priorities and objectives

• - identify results from expenditure

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How does PPBS improve the existing system?

• Budgeting takes place within programme
• and activities

• Budgeting is guided by objectives, programme
  priorities and desired results (rational and
  strategic management)

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How does PPBS improve the existing system?

• Majlis, managers and the public can assess the
  results of the MoP operations value for money,
  objectives achievement under each activity

• Accountability for results outputs and
• outcomes by programmes and activities

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PPBS
Strategic management of resources
Focus on results
Outputs
Outcomes
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Output Quantity Quality
Timeliness
PERFORMANCE INDICATION
Cost
Outcomes/Impact
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Measuring Results
INPUTS
OUTPUTS
IMPACTS
EFFICIENCY
EFFECTIVENESS
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How does PPBS improve resource allocation?

• By dividing the MoP operations into
• programmes and activities

• Setting objectives, strategies and expected
• results

• Allocating by programme priorities and
• results outputs and outcomes

• Budgeting within programmes to onnect inputs
  with results

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How does PPBS help assess results?

• Developing performance indicators

• Setting performance targets

• Monitoring target achievements

• Measuring results - efficiency and
• effectiveness

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PPBS improves accountability

• Accountability
• Financial Results
• (Outputs Outcomes)

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How does PPBS improve accountability for results?

• Whether targeted outputs have been achieved and
  how the outputs achieve the objectives (outcomes)

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PPBS Key Elements
1- Programme-activity structure and Programme
Statement
2- Objective setting
3- Performance indicators and measurement
4- Programme evaluation

• 5- Management information systems

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1. Programme Structure - Benefits

• Promotes strategic management

• A more rational system of budgeting and
• management on the basis of programme
• objectives and priorities

• Connects resources to specific results

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2. Objective Setting - Benefits

• Identifies what is to be achieved

• Gives purpose to what the staff is doing

• Rallies the staff to what is to be achieved

• Helps develop indicators to measure
• results outputs and outcomes

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3. Performance Indicators - Benefits

• Measure performance by setting targets

• Accountability for results

• Improve programme performance

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4. Programme Evaluation Plan - Benefits

• Basis for long-term resource allocation

• Acknowledges that cost of evaluation. Hence
• a five-year cycle of evaluations

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5. Management Information System - Benefits

• To gather data to measure the achievement of
  results from programme operations

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PPBS - Benefits

• Strategic management of resources

• Focus on results

• Accountability for results

• Improves programme performance

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Thank You