A new methodology for the planning and execution of the budget – is it applicable in Uzbekistan?
Result-oriented budgeting is a new approach in the planning and execution of the state budget, where budget performance is assessed not in terms of its execution, but in terms of achieving ultimate goals and results - said Botir Pardaev, Head of Treasury of the Ministry of Finance of the Republic of Uzbekistan at the opening of the seminar devoted to the result-oriented budgeting. – Applying this approach not only takes into account the “where”s and “what”s to be spent on the budget funds but rather what the end result will be obtained.
About 40 representatives of various ministries and government agencies attended a 2-day seminar on "Strategic Planning and Budgeting for results: international experience and application opportunities in Uzbekistan". The organizer of the seminar is the "Budget System Reform in Uzbekistan" project.
According to Nina Hajoyan, an international expert, this methodology has been used for many years in the world, and various models of the result-oriented budgeting have been developed so far. In particular, one of these models is the program method of planning and budget execution. The novelty and advantage of this method lies in the fact that the planning and budget allocation is carried out not by type of expenditure, but by the types of programs with respective goals, objectives and measurable indicators. Thus, the program method establishes a relationship between objectives, costs necessary for their implementation and results achieved.
The new method does not allow a rapid direct effect in the form of budgetary resources per se, but rather creates conditions for more efficient and effective use of public funds. In other words, it allows to better manage costs and ensure predictability.
This seminars allow specialists from the Ministry of Finance, line ministries and regional finance departments to be acquainted with international experience in the practical application of the result-oriented budgeting (including programming method), particularly with the experience of Asia, CIS and the Organization of Economic Cooperation and Development. Budget System Reform Project has already held a series of seminars devoted to the result-oriented budgeting, however only a number specialists from the Ministry of Finance and selected line ministries had a chance to get to know the new methodology.
In order to involve a wider range of specialists, along with today's seminar, the second seminar will be held on August 15-17 for professionals of regional financial departments (including regional Treasury departments) and trainers of the Training Center under the Ministry of Finance.
It should be noted that the UNDP "Budget System Reform in Uzbekistan" project is assisting to adapt the new methodology of planning and budget execution, and at this stage, a number of pilots on program budgeting method for several ministries has been developed.