Anda di halaman 1dari 22

Outcome Based

Budgeting
an integrated approach to public
sector performance management in
Malaysia

National Budget Office


Ministry of Finance
Malaysia
28 August 2014

www.themegallery.com

LOGO

Outcome Based
Budgeting
an integrated approach to public
sector performance management

Presentation
outline
1
2
3
4
5

Performance management & budgetary


reforms
Factors taken into consideration under
OBB
Integrated approach to OBB using Logic
Model
OBB implementation journey
Critical Success Factors & Challenges in
implementing OBB
2

Performance Management in Public Sector


Setting National
Priorities &
Goals

Revenue
policy
Macroeconomic
Planning
MTF

Debt
policy

Summative
Evaluation
Formative

Program
Rectification

Program
Delivery

Results
Based
Budget
Formulation

Program
Implementation
Performance
Monitoring
& Reporting

Outcome
planning
Performance
Budgeting

Delegation and
accountability
Expenditure
Management

Budgetary Reforms in Malaysia

l
a
n
o
i
t
Tradi57 19
1969

Detailed
Controls &
Discipline
Incremental
line item
budgeting

P P BS

1969
1990

Programs &
Performanc
e
Program
Performance
ProgramActivities
Performance
Indicators
Monitoring
& Evaluation

MBS-

1990
2013

Accountabili
ty,
flexibility &
delegation
Disaggregat
ed Budget
Budget
Ceilings
Program
Agreements
Exceptions
Reporting
Monitoring
& Evaluation

OBB

a te
d
3
201
Integrated
Approach
Integration
Alignment
Budgeting
for results
Results
Reporting
Monitoring
& Evaluation

Presentation
outline
1

Introduction

Outcome Based Budgeting


Integrated approach to OBB using Logic
Model
OBB implementation journey

Challenges in implementing OBB

Why Change was required??


Greater demand for quality results
Need to rationalise government expenditure &
improve public sector services delivery
Government has identified six transformation
levers:
Systematic
monitoring and
evaluation
system
Accountability
in the public
sector and
authority over
resources

Focus on
outcomes

SIX
LEVE
RS
Coordination
of operating
and
development
budgets

Vertical
alignment of
national
priorities and
ministry
activities
Managing cross
cutting
initiatives

OBB Strategic Cycle


Planning
for
Outcome

Performance
reporting and
policy
formulation

Results
Reporting
Managing
information for
monitoring,
evaluation and
decision support
system

Developing
the strategic
Results
Framework
for the
Ministry

Budgeting
for
Outcome

Monitoring
&
Evaluation

Preparing the
resource
requirements
to drive the
ministry
results

OBB plays a key role in linking the national


transformation pillars from implementation
to RESULTS
TRANFORMATION
PILLARS
Governmen
t
Transforma
tion
Programme

OBB ENVIRONMENT

RESULTS

Planning
Planning for
for
Economic
outcome
outcome
Transformati
on
Budgeting
Budgeting
Results
for
for
Programme
Reporting
Reporting
Outcome
Outcome

Strategic
Reform
M&E
M&E
Initiatives
National Key
Economic
Strategic
Areas
management

tool
for managers at all
levels
Structured
mechanisme linking
national planning to
Malaysias
Medium-term
implementation at
Plan
(10th &
agencies
11th Plan)
Vertical
alignments
Horizontal

VISION 2020

National Results Framework


STR. THRUST 1

Creating the
Environment for
Unleashing
Economic Growth

STR. THRUST 2

Moving towards
Inclusive SocioEconomic
Development

STR. THRUST 3
Developing and
Retaining a FirstWorld Talent Base

TERAS
STR. THRUST 4
STRATEGIK
Building an4
Environment that
Enhances Quality of
Life

TERAS
STR. THRUST 5
STRATEGIK 5

Transforming
Government to
Transform Malaysia

KRA 1
KRA1

KRA 1

KRA 1

KRA2

KRA 2

KRA 2

KRA3

KRA3

KRA3

KRA4

KRA4

KRA 4
KRA 5

KRA5

KRA 1

KRA 2

KRA 2

KRA 3

KRA3

KRA 4

KRA 4

KRA5
KRA 6

5 National
Outcomes

4 National
Outcomes

5 National
Outcomes

6 National
Outcomes

4 National
Outcomes

5 National
Programmes

6 National
Programmes

5 National
Programmes

10 National
Programmes

4 National
Programmes

Source: EPU

Programme-Activity Structure

10th

National
Results
Framework

10th

Strategic
Thrusts
Malaysian Plan
KRAs
Malaysian Plan
Outcomes

National Programmes

Outcome
1
Min. Prog. 1

Activity
1

S/Activi
ty

Activity
2
Proje
ct

Outcome
2

Outcome
3

Min. Prog. 2

Activity
3

Outcome
n

Min. Prog. 3

Activity
5

Activity
4
SubActivity

Activit
yn

Activity
7
Activity
6

Proje
ct

Mini. Prog. n

Activity
8
SubActivity

Proje
ct

Ministry level Results


Framework

Ministry

Integrated approach under OBB


Vertical alignments
Horizontal linkages
Integrated budgets

National level
National Strategic Thrusts
National Outcome
Key Performance Indicator
National Programme

Ministry level
Ministrys Outcome
Key Perf. Indicator
Programme
Programme level
Prog. Outcome
KPI
Activity

Programme level
Prog. Outcome
KPI
Activity

NRF

Ministry level
Ministrys Outcome
MES Key Perf. Indicator
Programme
Programme level
Programme level
Prog. Outcome
Prog. Outcome
KPI
KPI
PPM
Activity
Activity
F

Activity level
Activity level
Activity
Activity level
re level
e level
a
r
Activity
level
Activity
Activity
level
Activity
level
s
Activity Outcome
Activity
Outcome
Activity Outcome
tActivity
s a Outcome
e
t
Activity
level
Outcome
Outcome udg ilActivity
Outcome
Activity
Outcome
t
Activity

ge Activity
KPI
KPI
KPI
KPI
t
d
l
B
APM Activity
Outcome
buActivity
ui KPI Output
KPI Output
KPI Output
Activity
KPI Output
Bu b
Activity
Activity
KPI Output
F Activity
Output
Output
Output
Activity
Activity
Activity
PI
PI
PI
PI
Output
PI
PI
PI
Activity
PI
PI
1

Presentation
outline
1

Introduction

Outcome Based Budgeting


Integrated approach to OBB using Logic
Model
OBB implementation journey

Challenges in implementing OBB

Linear Logic Model

Implementation
Outcomes are the
changes we bring to a
problem or need
situation

INPUT
We have a
tendency to
focus on
Inputs

PROCESS

OUTPUT

and outputs
are
assembled
based on
inputs

OUTCOME
The focus
should be
on
Outcomes

When Planning
1

Outcome Needs/Problem Triangulation

NEEDS &
PROBLEMS
ANALYSIS

OUTCOMES

Addressing Needs and


Problems
1

FEDERAL TREASURY
(NATIONAL BUDGET OFFICE)

NOVEMBER
Determination of ET by Treasury

JANUARY
Call Circular
for New Year
Estimates

BUDGET CYCLE

March

Receive submissions
and BRO makes
Individual Study

Agencies Prepare
and Submit New
Year Estimates

MAY-JULY
Budget
examination

APRIL
Preliminary
Analysis

JULY - AUGUST
Approval of New Year
Estimates by the Minister of
Finance and Cabinet

SEPTEMBER
Budget Document
Printed and submitted
to Parliament

Disbursement/Reporting
by Accountant General

Budget Execution
by Agencies

END OF DECEMBER
Minister of Finance issues
Warrant of Expenditure

SEPTEMBER-DECEMBER
Parliament Debates and
Approves New Year Budget

Presentation
outline

Performance management & budgetary


reforms
Factors taken into consideration under
OBB
Integrated approach to OBB using Logic
Model
OBB implementation journey

Challenges in Implementing OBB

1
2
3

OBB Implementation Journey


2014 - 2015
Continuous data
quality
2012-2013
refinement
OBB Policy
Focus on
Circular
2010 - 2011
monitoring &
Roll out of OBB
performance
Developed OBB to all ministries
reporting
Conceptual
(Parallel in 2012) Initiate COE &
Framework
evaluation cycle
Data validation
Awareness
to be
& refinement
operational
Programs
(selected Min
Budget prep. for
Capacity
initiative)
2016 to be fully
Building
Strengthening
OBB compliant
(Trainers and
the role of MOIC
Integrated
RLs)
in Planning
performance
Developed
monitoring &
Initial Results
PHASE 1
reporting to be

Framework for

2016 >
Full
implementation
of OBB
recommendation
s including full
systems and
institutions

PHASE 2

Presentation
outline
1
2
3
4
5

Performance management & budgetary


reforms
Factors taken into consideration under
OBB
Integrated approach to OBB using Logic
Model
OBB implementation journey
Critical Success Factors & Challenges in
Implementing OBB

Critical Success Factors


OUTCOMES

Performance information must


be demand driven by
stakeholders
OUTPUTS
Leaders must empower their
team and execute strategy
BROs must focus on program
performance and accountability
PROCESS
Sustainable capacity building
Report on performance through
effective monitoring and
INPUTS
evaluation
1

Challenges in implementing OBB


Understanding the concepts
Role of management in strategy
building
Quality of information in the results
framework
Culturalising performance
Redefining the roles of budget review
officers focus on performance &
accountability
Sustainable capacity building and
frequent movement of OBB trainers
Identifying the right IT solution and
translating business requirements into
an IT system
2

MyResults: Performance Management


System
Ministry/Agency

Planning
Budget
ing
Monitorin
g
Evaluat
ion
Reportin
g

Demand
Analysis
2

thank you
terima kasih

myresults@treasury.gov.my