Author Topic: Improving the Management of Public Expenditures: Evidence from India  (Read 512 times)

Anand

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I am Anand P Gupta, Director, Economic Management Institute, New Delhi, and Member, Board of Directors, IC Centre for Governance, New Delhi.  A former Professor of Economics and Chairman, Economics Area, Indian Institute of Management, Ahmedabad, Public Finance and Fiscal Policy Specialist at The World Bank, Guest Scholar at the Brookings Institution and Visiting Scholar at the George Mason University's Center for Study of Public Choice, I have published the attached article in the July 2015 issue of The Journal of Governance.  I will greatly appreciate your advice and comments.

Napodano

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Re: Improving the Management of Public Expenditures: Evidence from India
« Reply #1 on: November 05, 2015, 08:44:43 GMT »
Hi, Anand;

Welcome to the PFM Board. I read your article with interest.

On the aspects of Performance Budgeting, it takes time to make it work as it requires a cultural shift in civil servants. What is essential is a continuous commitment by the Prime Minister Office (PMO) to request quality information out of the outcome targeting (better saying ‘forecasting) and the M&E of those outcomes . This information needs to be debated in dedicated meetings of the Council of Ministers or other Central Economic Committees , which the Prime Minister attends in person and where he makes an alliance with the Minister of Finance to ensure the credibility of the performance system. A dedicated service in the Prime Minister Office  should work hand-in-hand with the MoF Budget Dept. to meaningfully review and use this information for future planning and expenditure allocations. In this way Line Ministers will take notice.

For a good practice on Performance Budgeting and the link to planning you could have a look at the experience in Albania. Attached to this post you have a short presentation about the institutional set-up in Albania PMO. You could also read the professional diaries of Gordon Evans at http://pfmboard.com/index.php?topic=7363.0

Let’s see what other PFM Board members have to say.

Cheers, Mauro



« Last Edit: November 05, 2015, 08:49:54 GMT by Napodano »

Napodano

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Re: Improving the Management of Public Expenditures: Evidence from India
« Reply #2 on: November 05, 2015, 15:48:54 GMT »
Another example of a program budget, from a large country this time, is Brazil.
From http://www.planejamento.gov.br/assuntos/planejamento-e-investimentos/plano-plurianual/o-ppa you can download the Brazilian MTEF (PPA). It is in Portuguese only, though.


John Short

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Re: Improving the Management of Public Expenditures: Evidence from India
« Reply #3 on: November 05, 2015, 17:14:47 GMT »
As well as the Fireside Chat with Gord Evans there is the Fireside Chat with Marc Robinson with a good interplay Q&A and comments.

FitzFord

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Re: Improving the Management of Public Expenditures: Evidence from India
« Reply #4 on: November 18, 2015, 21:19:06 GMT »
Anand,

I tried earlier in this discussion to respond to well known but frustrating designing and management financial programs in India. I am glad that you have taken on the task, with your knowledge of both the subject and the country. I have been thinking about whether the types of problems and barriers may be addressed by a radical approach (not just in India). In précis, it is making use of the technology that can convey realities of performance and results  essentially immediately. Health delivery may be observed in any part of the country to any other part, the effect of floods similarly including projecting the likely consequence on roads, disease and loss of agricultural production. The list is, as you know, of much of meaningful performance in almost all spheres public services is substantial and can be made transparent. There are, of course, cultural differences that would determine responding, interpretation and reaction (Francis Fukuyama...) but opening these gates may (most likely?) open the society as a whole, to changes, hopefully, more in positive directions, rather crashing into the same walls.

If this approach seems useful to your direction, please let me know.

Fitz.

Anand

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Re: Improving the Management of Public Expenditures: Evidence from India
« Reply #5 on: November 20, 2015, 11:52:19 GMT »
Hi, Mauro:

Thank you very much for your comments on my article.  I totally agree with you that it takes time to make an initiative like the Government of India’s Outcome Budget (OB) work as “it requires a cultural shift in civil servants.”  The question is: how much time? As I said in the article, OB was launched on February 28, 2005.

As suggested by you, I have read with a great interest the Government of Albania’s Integrated Planning System Manual, which provides “a broad planning framework within which the Government’s core policy and financial planning processes function in a coherent, efficient and
integrated manner....The fundamental assumption of IPS is that the quality and coherence of these technical processes significantly affect the government’s ability to achieve its policy goals/objectives and keep its promises to the public.” (Page 7.)  This is good but the question is: how good and coherent have these processes turned out to be? In case you know the answer to this question, I will greatly appreciate your sharing it with me.

As regards the Brazilian MTEF (PPA), I would love to go through it.  But as it is in Portuguese, I cannot do that.  The loss is entirely mine.

Regards.

Anand.

Anand

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Re: Improving the Management of Public Expenditures: Evidence from India
« Reply #6 on: November 20, 2015, 12:11:59 GMT »
Hi, John:

Many thanks for introducing me to the Fireside Chats with Gord Evans and Marc Robinson.  I have read with a great interest some of Gord’s professional diaries, in which he has shared his insights on PFM issues.  I will look forward to reading his remaining diaries.

Where do I find Marc’s diaries?

Regards.

Anand.

Anand

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Re: Improving the Management of Public Expenditures: Evidence from India
« Reply #7 on: November 20, 2015, 12:21:46 GMT »
Hi, Fitz:

Yes, I will be interested in the details of your approach.

Regards.

Anand.

John Short

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