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Establishing a Performance Management Framework for Government

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  • Jack Diamond
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    Abstract

    Based on the experience of budget management reforms that have been introduced over the last two decades in a large number of member countries of the Organization for Economic Cooperation and Development (OECD) it is not uncommon to find emerging market economies moving toward performance-based budgeting where measures of performance play a key role. While it might be tempting for middle income countries to press forward to adopt a full-blown outputs and outcomes framework, there are some risks in the move. Such a change in orientation is only possible once managers have had adequate experience in refining the definition of programs and their objectives, and on this basis developing a comprehensive system of performance measurement. It is argued in this paper that to develop a comprehensive performance measurement system requires resolving a number of issues involved in clearly defining how to measure "performance" as well as overcoming a number of technical issues in the design and use of measures of that "performance." However, perhaps the most critical step is introducing a system whereby performance information can influence resource allocation decisions, i.e., establishing a performance management system. Based on international experience, this paper reviews each of these hurdles in moving toward a performance management framework.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/50.

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    Length: 28
    Date of creation: 01 Mar 2005
    Date of revision:
    Handle: RePEc:imf:imfwpa:05/50

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    Keywords: Fiscal management; Government expenditures; Budgetary policy; Emerging markets; budget management; performance budgeting; budget process; resource allocation; budget systems; ministry of finance; resource allocation decisions; government finance; service delivery; expenditure management; budget system; government policy; service quality; budget officials; budget preparation; budget execution; budget allocations; accountability framework; budget system reform; budget managers; service provision; public finance; government performance; financial management; department of finance; budget documentation; government agencies; agency performance; medium-term budget; managerial autonomy; budget resources; medium-term budget framework; central budget; output budgeting; government service; budget support; government spending; public finances; budget planning; citizen participation; federal government; budget documents; ministry of defence; cash accounting; general budget support; management information systems; budget management process; management in government; financial management information; financial management information systems; budget office; internal audit; allocation of budget resources; budget proposals; budget framework;

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