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CHAPTER 3 BUDGETING IN PUBLIC SECTOR (EVOLUTION - OBB) - Coggle Diagram
CHAPTER 3
BUDGETING IN PUBLIC SECTOR
(EVOLUTION - OBB)
INTRODUCTION
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Outcome Based Budgeting (OBB)
is a continuous process underOutcome Based Approach (OBA)
with the objectives to achieve the results determined under National Result Framework (NRF).
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Key enhancement of OBB
from MBS
program approach,
focusing on outcomes,
addressing issues of horizontal and vertical integration at all levels of implementation,
improved monitoring and evaluation framework,
better reporting formats.
OBJECTIVES
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Provide structural mechanism to translate policy and concept of National Transformation Programme (NTP) to outcome & results.
Empowering Controlling Officer to manage resources under their control.
Increase accountability at all levels through strengthening of governance framework.
Ensure gov will achieve the concept of value for money for budget expenditure mgt.
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BENEFITS OF OBB
Set clear priorities at national, ministry and activity level
Remove duplication and better manage
Provides a framework for eliminating overlapping programmes
Provides a basis for better integration of M& E systems
Better focus on results especially on outcomes
Allow online budget preparation and submission
Provide availability of audit trail
Allow analytical on budget utilisation and results
8 PRINCIPLES OF DESIGNING OBB
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Planning and constructing of budget is based on Programme Based Approach.
Roles and responsibility of MOF, EPU and PSD in examining ministry’s budget.
Ministry’s programmes aligned to the NRF.
Medium-term perspectives in planning and budgeting.
Strengthen performance management.
Empowering Controlling Officer.
Incentives for results achievements.
Continuous development of ability.
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CHALLENGES OF OBB
The level of acceptance and understanding still low
Requires commitment from the top level mgt of ministries and agencies
Quality of info in the results framework need to be improved.
The gov need to review the existing structure of programmes and activities to adapt to OBB.
The structure of OBB requires more work and more commitment from the officer; increases workload.
IMPLEMENTATION STRUCTURE OF OBB
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Main Committees
National OBB Steering Committee (NOSC)
Central Performance Management Committee (CPMC)
Programme Rationalisation Committee (PRC)
Ministry OBB Implementation Committee (MOIC)
Sub-Committees
Programme Performance Management Committee (PPMC)
Activity Performance Management Committee (APMC)
STRATEGIC PROCESS OF IMPLEMENTING OBB
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1. Outcome Based Planning
each program can be executed by multiple ministries
while each ministry will be
responsible for a component of program.
Program Agreement
is an;
Agreement on which ministry is responsible for the program component,
the activities needed for that component, and
resources needed for these activities.
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2. Budget Preparation
Top-Down Approach for Budget Planning
Bottom-Up Approach for Budget Preparation
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3. Monitoring & Evaluation
Performance Monitoring & Evaluation Framework
INPUT
- Resources used by programme/ activities to generate output & achieve outcome
PROCESS
- Operation/ work process where input is utilised to produce specific output
OUTPUT
- Direct product & services produces from activities under programs
OUTCOME
- Effect & result from programme output
IMPACT
- The final outcomes as the results of program
Emphasis on the
following issues;
Appropriateness
Effectiveness
Efficiency
Economy
Method of evaluation;
Formative
Summative
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4. Reporting of Results
RESPONSIBILITY OF CENTRAL AGENCIES UNDER OBB :lock:
Economic Planning Unit (EPU)
Prepare policy and strategy framework
Ministry of Finance (MOF)
Coordinate, evaluate and approved Ministry’s budget proposal to be presented in Parliament
Public Service Department (PSD)
Look at the improvement of human resource management aspect
Implementation Coordination Unit (ICU)
Coordinate, monitor and evaluate performance of projects development
Malaysian Administrative Modernisation and Management Planning Unit (MAMPU)
Act as driving force and consultancy expert
National Audit Department (NAD)
Perform audit on identified Ministry’s Programmes or Activities from time to time
Accountant General Department (AGD)
Continue to develop, manage, control and improve the gov accounting system
Quarterly and Annual Ministry’s Performance Report
Quarterly and Annual Projected Cash Flow
MOIC Report [Ministry OBB implementation committee]
Quarterly and Annual Monitoring of OBB Programme or
Activities Report
Formative Assessment of OBB Programme or Activities
Report
Summative Assessment of OBB Programme or Activities
Report
STRATEGIC TEMPLATE
(PERFORMANCE AGREEMENT)
OF OBB
PURPOSES
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To show clearly alignment and relation btwn MRF & NRF.
To identify other programmes that coincides.
To give holistic view on integrated budget preparations.
STRATEGIC TEMPLATE
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Ministry Executive Summary
Programme Performance Management Framework
Activity Performance Management Framework