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Integrating Public Environmental Expenditure within Multi-year Budgetary Frameworks

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  • Nelly Petkova

    (OECD)

Abstract

Medium-term approaches to budgeting are now common in OECD countries and are being adopted increasingly by developing countries. This reflects a realisation that the annual approach to budget making actually undermines budgetary performance, contributing to fiscal instability and, perhaps even more fundamentally, to resource misallocation and the inefficient and ineffective use of resources. The purpose of this study has been to analyse how multi-year budgetary processes work in practice in both high income OECD countries and in aid-receiving countries, with a view to identifying the opportunities for, and limits to, financing environmental management. It also provides suggestions to the donor community on how to make better use of multi-year budgeting when providing general support to the budgets of developing countries in order to ensure that environment is included in this process. In this context, the report may be of interest to various audiences. On the one hand, representatives of the ministries of environment and other relevant government agencies with responsibilities for environmental and natural resource management who struggle to prepare medium-term budgets may find this analysis useful. On the other hand, the report is targeted at experts from the ministries of finance and economy who are charged with assessing environmental programmes and taking decisions for their financing. The third target group are those donors who even if they are moving to direct budget support, may still be concerned that the environment sector is adequately funded. La budgétisation à moyen terme est désormais courante dans les pays de l’OCDE, et les pays en développement y ont de plus en plus recours. On s’est rendu compte, en effet, que la budgétisation annuelle nuisait en réalité à l’exécution du budget, favorisant l’instabilité budgétaire et, de manière peutêtre encore plus fondamentale, une mauvaise allocation et une utilisation inefficace des ressources. La présente étude a pour objet de voir comment la budgétisation pluriannuelle fonctionne concrètement dans les pays de l’OCDE à revenu élevé et dans les pays qui bénéficient d’une aide, afin de déterminer les possibilités et les limites en matière de financement de la gestion environnementale. La communauté des donateurs y trouvera également des propositions quant aux moyens de mieux exploiter la budgétisation pluriannuelle, lors du versement d’une aide budgétaire générale aux pays en développement, pour que l’environnement soit pris en compte dans ce processus. Par conséquent, l’étude est susceptible d’intéresser des publics divers. Tout d’abord, les fonctionnaires chargés d’établir les budgets à moyen terme dans les ministères de l’environnement et autres organismes publics jouant un rôle dans la gestion de l’environnement et des ressources naturelles y trouveront sans doute des informations utiles. Ensuite, l’étude est destinée aux experts des ministères de l’économie et des finances qui s’occupent d’évaluer les programmes de protection de l’environnement et de se prononcer sur leur financement. Enfin, le troisième public visé est celui des donateurs qui, bien que s’orientant vers l’aide budgétaire directe, continuent de veiller à ce que le secteur de l’environnement perçoive un financement suffisant.

Suggested Citation

  • Nelly Petkova, 2009. "Integrating Public Environmental Expenditure within Multi-year Budgetary Frameworks," OECD Environment Working Papers 7, OECD Publishing.
  • Handle: RePEc:oec:envaaa:7-en
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    File URL: http://dx.doi.org/10.1787/224138120533
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    More about this item

    Keywords

    aide budgétaire directe; budget systems; cadres de dépenses à moyen terme; coopération pour le développement; development cooperation; direct budget support; environmental investment programmes; environmental management; environmental public expenditure management; gestion des dépenses publiques de protection de l’environnement; gestion environnementale; medium-term budgeting; medium-term expenditure frameworks; programmes d’investissement en matière d’environnement;

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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