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Performance Budgeting in France and Public Service Delivery

Presupuesto basado en resultados en Francia y prestación de servicios publicos

Frédéric BobayGeneral Directorate of the Treasury and Economic Policy

Ministry of Economy, France

Conferencia Internacional México 2008Presupuesto basado en resultados

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LOLF“Loi Organique sur les Lois de Finances”

La reforma francesa de ley constitucional en materiapresupuestarra en el 2001

The 2001 French Constitutional Bylaw on Budget Acts

Outline:1 - Performance budgeting in France

Presupuesto basado en resultados en Francia

2 - Performance information process Proceso de información da desempeño

3 - Performance and service deliveryDesempeño y prestación de servicios

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1 - Performance budgeting in France

Presupuesto basado en resultados en Francia

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General contextContexto general

Deep underlying constraints: Principales desafios :

(1) Demographic challenge: `papy boom` and PF sustainabililty(2) Limited economic policy tools: EU integration, euro, SGP

Focus on : public productivity (efficiency), PF impact on growth(effectiveness), fiscal allocation (decision making) Focus on fiscal consolidation: Fiscal rule (zero volume)

Presentation focus on Government budget, not general government (excludes Soc. Sec., Local authorities budget)Budget reform is followed by structural reforms, a spending review process, multi-year budget reform

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Challenges to performance budgetingRetos de la presupuestación de desempeño

Limited financial power of the Parliament

Rigidities in public finances management

Administrative-based budgeting: ministerial struct.

Administrative bargaining: spending incentive

Fragmentation of public accounts (848 chap.)

Fragmentation of management information (eg HR)

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Constitutional politicsPoliticas constitucionales

Mix const. regime: Presidential/Parliamentarian Directly elected Pdt + PM & Majority MPAlways a Majority MP for PM’s Budget ActThe crisis

Consequence of the crisis: new MF, new dynamic

Global consensus: Multi-partisan, Inter-institutions, political leadership (mature/pragmatic individuals)

Writing the new constitutional Bylaw on budget acts: Voted in August 2001 for implementation in 2006

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Budget structured by public policyEstructura de presupuesto par politicas publicas

Mission

Programme Programme Programme

ActionAction ActionActionManagement

Discussion and vote in Parliament

AuthorisationExecution

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MISSIONS: PROGRAMMES:

34 Missions 132 Programmes

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Greater appropriation role for Parliament Greater implementation responsibility for Government

The Mission is the voting unit for Parliament appropriations Parliament may reallocate appropriations between Programmes, within a Mission. The Mission may be ministerial / inter-ministerial

The Programme is the implementation unit for Government Under a single ministry. Tied with explicit performance goals and indicators. A dedicated Programme Manager in charge of implementation with individualized responsibility. Fungible credit lines within a Programme for a more flexible management

Missions/Programmes :

Rebalancing budget powersRebalanceando los poderes de presupuestación

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Up to 2005

A first-euro appropriation processProceso de aprobación en el

parlamento desde el primer euro

94% of appropriations are renewed virtually automatically from one year to the next (current services appropriation) without being brought into question.Most of the debates focus on just 6% of the general budget.

100% of the appropriations are debated in Parliament, for each mission.

Since 2006

New measures for each ministry: 97 passed in 2003

Current services appropriation: a single vote

47 missions, 47 votes

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2 - Performance information process

Proceso de información da desempeño

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Documenting performance: goals and indicatorsDocumentando el desempeño : metas e indicadores

The performance budgeting cyclePAPs: Annual performance programmeBudget document in the budget act: defines goals and performance indicators for future yearRAPs: Annual performance reportBudget document in the budget cloture act: report on performance achievements of previous year

In the PAPs and RAPs, for each Programme:On average 5 goals per ProgrammeOn average 2 Indicators per goalAdjustment of goals and indicators over the years

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Performance incentive: spending flexibility and steeringIncentivos de desempeño :

flexibilidad y responsabilidad del gasto

Increased flexibility for the Government in implementing the budget

Within a Programme: ex-ante credit structure of each Action is non-binding for the managerDedicated reporting system for spending management and performance follow-up (Actions within the Programme)

Performance steering: the Programme ManagerFollowing decision by the Director of Financial AffairsHe is granted appropriations, which he distributes for internal management needs,He is accountable to Parliament for performance: the Annual Performance Plan (appended to the budget act)He reports to Parliament: the Annual Performance Report (appended to the budget review act)

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Incentive: asymetric fungibilityIncentivos : asignación libre asimetrica

Command, training and logistics

Criminal investigation police and assistance to the judicial system

Immigration administration and international transport safety

Road safety

Public security

Public order and protection of sovereignty

Actions:

ClassSubsidies

ClassInvestment

ClassCurrent services

ClassPersonnel

Programme “National police”

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Controlling performance informationControlando la información de desempeño

Performance reliability:The performance audit committee (CIAP)

Supervises the relevance and methodology of performance indicators. Provides quality control of the performance documents (PAPsand RAPs) before their submission to the Parliament.Provides assistance to line ministries on technical difficultiesassociated with performance methodology and data relevance and accuracy.Members: internal auditors from lines ministries. Chairman: internal auditor from the ministry of finance.

A single “Performance assessment manual” jointly used by the Government, the Parliament and the National Audit Office

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Performance indicator taxonomyTaxonomia de indicadores de desempeño

The 3 types of indicators:

Standpoint Goal Sample of goals Sample of indicators

1 - Citizen

2 - User

3 - Taxpayer

Socio-economiceffectiveness

Quality ofservicesprovided

Managementefficiency

Improve theemployability ofyoung graduates

% of graduates witha job six monthsafter graduating

Speed upjudicial decisions

Reduce the taxmanagement cost

Average decisionlead time; averagehearing time

Tax cost pertaxpayer

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Parliament involvement in performanceInvolucración del parlamento en el

desempeño

Enhanced appropriation processAppropriations on a “first euro” basis.Increased appropriations powers (between Programs, within Missions)Performance-based appropriations: assessment of previous spending achievements (with goals and target indicators: PAPs)A new moment in the budget cycle: the spring performance assessment (RAPs)

Improved control over government actionGreater investigative and hearing powersStronger links between budget execution and parliamentary authorisation

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3 - Performance and service delivery

Desempeño y prestación de servicios

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Goal: Improve the safety and service quality of the national road network

Mission: Ecology, sustainable development and infrastructuresProgramme: National road networkIndicator No 1.2: Users satisfaction

Case: the road network serviceCaso : el servicio de red de carreteras

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Goal: Provide judicial decisions of civil court in a reasonable time Mission: Justice systemProgramme: Judicial justiceIndicator No 1.1: Average time for processing legal cases, by types of

jurisdiction

Case: the civil justice serviceCaso : servicio de justicia civil

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Goal: Provide integrated management of water ressourcesMission: Ecology, sustainable development and infrastructuresProgramme: Environmental protection and risks preventionIndicator No 2.4: Water resources preservation

Case: water management serviceCaso : servicio de administración de agua

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Goal: Increase tax easiness Mission: Management of public finances and human resourcesProgramme: Fiscal and financial management of the State and

local public administration Indicator No 2.1: Degree of implementation of the commitments

in the tax easiness program

Case: the tax serviceCaso : el servicio de impuestos

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Goal: Increase tax easiness Mission: Management of public finances and human resourcesProgramme: Fiscal and financial management of the State and

local public administration Indicator No 2.2: Degree of dematerialisation of tax processes

Case: the tax serviceCaso : el servicio de impuestos