Principles Budgetary Governance Book

Principles Budgetary Governance Book
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    @OECDgov DRAFT RECOMMENDATION OF THE OECD COUNCIL ON THE PRINCIPLES OF BUDGETARY GOVERNANCEPUBLIC GOVERNANCE AND TERRITORIAL DEVELOPMENTOECD, Paris www.oecd.org/govOECD Paris2, rue André-Pascal, 75775 Paris Cedex 16Tel.: +33 (0) 1 45 24 82 00

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    OECD PRINCIPLES OF BUDGETARY GOVERNANCE OECD Senior Budget Officials July 2014

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    Introductory note The objective of these Principles is to draw together the lessons of a decade and more of work by the OECD Working Party of Senior Budget Officials (SBO) and its associated Networks, along with the contributions and insights from other areas of the OECD and of the internatio...

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    1 OECD PRINCIPLES OF BUDGETARY GOVERNANCE Introduction: The fundamental national role of the budget and the budgeting process The budget is a central policy document of government, showing how it will prioritise and achieve its annual and multi-annual objectives. Apart from financing new and ...

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    2 1. Budgets should be managed within clear, credible and predictable limits for fiscal policy.  A sound fiscal policy is one which avoids the build-up of large, unsustainable debts, and which uses favourable economic times to build up resilience and buffers against more difficult times. Th...

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    3 3. The capital budgeting framework should be designed to meet national development needs in a cost-effective and coherent manner.  Capital investment plans, which by their nature have an impact beyond the annual budget, should be grounded in objective appraisal of economic capacity gaps, i...

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    4 5. Debate on budgetary choices should be inclusive, participative and realistic.  As well as having access to budget documents and data, parliament and citizens should be able to engage with and influence the discussion about budgetary policy options, according to their democratic mandate,...

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    5 7. Budget execution should be actively planned, managed and monitored.  Once authorised by parliament, the budget allocations should be implemented fully and faithfully by the agencies of government, with oversight throughout the year by the CBA and line ministries as appropriate.  Ca...

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    6 9. Longer-term sustainability and other fiscal risks should be identified, assessed and managed prudently  To promote a stable development of public finances, mechanisms should be applied to promote the resilience of budgetary plans and to mitigate the potential impact of fiscal risks. Fi...

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    7 Select bibliography Anderson, B. and J. Sheppard (2009), “Fiscal futures, institutional budget reforms, and their effects: What can be learned?”, OECD Journal on Budgeting, 2009/3:7-117, actionURI(http://dx.doi.org/10.1787/budget-9-5kmh6dnl056g):http://dx.doi.org/10.1787/budget-9-5kmh6dn...

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    8 OECD (2014), Budgeting Practices and Procedures in OECD Countries, OECD Publishing, http://dx.doi.org/10.1787/9789264059696-en. OECD/Korea Institute of Public Finance (2012), Institutional and Financial Relations across Levels of Government (OECD Fiscal Federalism Studies), OECD Publishing, a...

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    9 OECD Principles of Budgetary Governance An Overview Budgeting within fiscal objectivesQuality, integrity &independent auditPerformance, Evaluation & VFMComprehensive budget accountingEffective budget executionAlignment with medium-term strategic plans and prioritiesPerformance, evalu...

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    @OECDgov DRAFT RECOMMENDATION OF THE OECD COUNCIL ON THE PRINCIPLES OF BUDGETARY GOVERNANCEPUBLIC GOVERNANCE AND TERRITORIAL DEVELOPMENTOECD, Paris www.oecd.org/govOECD Paris2, rue André-Pascal, 75775 Paris Cedex 16Tel.: +33 (0) 1 45 24 82 00