Performance Budgeting: Managing the Reform Process

February 1, 2003

Preview Citation

Format: Chicago

Jack Diamond. Performance Budgeting: Managing the Reform Process, (USA: International Monetary Fund, 2003) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper reviews the role of accounting in budget system reform from the perspective of emerging economies who wish to adopt the OECD's performance budgeting reforms. While many OECD countries, pursuing the reforms associated with the New Public Management, have moved their accounting systems from a cash to an accrual basis, this paper argues that given the costs involved, such a move is perhaps only worthwhile in the context of adopting much wider public sector management reforms. Moreover, while recognizing that accrual accounting does support public expenditure management best practices, it is also argued that many of the objectives of performance-oriented budgeting can be attained by less than full accrual accounting, and that unless certain preconditions are met it is safer for countries to remain with, and improve, their cash-based accounting systems. For those countries with sound enough cash-based systems the paper describes a possible phased approach to the introduction of accruals, as well as the parallel stages of adopting the new international GFSM 2001 reporting requirements.

Subject: Budget execution and treasury management, Budget planning and preparation, Central government spending, Fiscal accounting and reporting, Performance-based budgeting, Public financial management (PFM)

Keywords: Agency management, Australia and New Zealand, Budget execution and treasury management, Budget office, Budget planning and preparation, Budget reform, Budget system, Caribbean, Central government spending, Emerging economies, Fiscal accounting and reporting, Fiscal transparency, Global, Management model, Management system, Management tool, Medium-term budget planning, Performance budgeting, Performance-based budgeting, WP

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2003/033
Stock No:

WPIEA0332003
ISBN:

9781451845204
ISSN:

1018-5941

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