PROGRAMME-BASED BUDGETING WORKSHOP

OPENING REMARKS BY

Y.BHG.DATO’ NORIYAH AHMAD

DIRECTOR GENERAL OF THE ECONOMIC PLANNING UNIT,

PRIME MINISTER’S DEPARTMENT

Putrajaya International Convention Centre

4thMarch 2010

Mr. Jim Brumby

Sector Manager

Public Sector & Governance

World Bank;

Mr. Theo Thomas

Senior Public Sector Specialist

Public Sector & Governance

World Bank;

Mr. Adrian Nye

Senior consultant of Australia;

Dr. Nowook Park

Director at the Centre for Performance Evaluation & Management, Korea Institute of Public Finance;

Distinguished Guests;

Ladies and Gentlemen.

Assalamualaikum and a very good morning to all of you.

1.It gives me great pleasure to be here today to welcome the World Bank and the ministries to this two-day Programme-Based Budgeting Workshop. I would like to commend the World Bank for engaging their experts from four different countries with their vast experience in the public sector managementto conduct this workshop.

2.The objective of this workshop is to provide the participants a better understanding on programme-based budgeting as well as to learn the experiences in implementing programme-based budgeting in other countries, namely South Korea, Australiaand Brazil. We will also find out how some of these countries manage resource management reform.

Ladies and Gentlemen,

3.The Economic Planning Unit is in the midst of preparing the 10th Malaysia Plan, 2011-2015. In order to improve development results under the Tenth Plan, a more specific focus on outcomes of programmes and projects will be emphasised. This will ensure that programmes and projects produce the desired outcomes that will achieve identified national priorities. Towards this end, an outcome-based approach will be adopted in the planning and implementation of the Tenth Plan.

  1. At the planning stage, an integrated planning framework was formulated with the five National Mission Thrusts retained as a basis for planning. For each Thrust, key result areas (KRAs) or national priorities with targeted outcomes were identified to narrow down policy direction at the national level. To ensure that efforts are focussed towards achieving outcomes, programmeswere formulated for each KRA. Outcomes will be measured against key performance indicators (KPIs) to evaluate the effectiveness of programmes and projects implemented by the ministries and agencies.
  1. The framework, which comprises KRAs, outcomes, KPIs and programmes at the national level is systematically cascaded down to the implementation level. This means that KRAs, outcomes, KPIs, and programmes identified at the ministry level are in line with the national level framework. This framework will be adhered to by ministries and agencies when planning and implementing their programmes. These programmes comprise a number of projects and activities to be implemented by one or more ministries. Projects and activities will be approved on the basis of their contribution to programme outcomes and commitment will be made on the basis of priority.Theoutcome-based approach is expected to improve overall performance and enhance public sector service delivery towards achieving the objectives of Vision 2020.
  1. To allocate funding to these programmes and projects, outcome-based budgeting or programme-based budgeting will be implemented. Among others,the programme-based budgeting is expected to:
  • clear alignment of national goal to operational levels;
  • remove cross cutting issues among ministries and agencies;
  • eliminate overlapping and redundant programmes; and
  • integrate monitoring and evaluation system.

Ladies and Gentlemen,

7.For the Tenth Plan, all project submissions are based on programmes. Through these programmes,development expenditure and operating expenditure will be integrated to reflect total budget requirement in implementing projects by one or more ministries.This integration will eliminate redundancy of funding and ensure value-for-moneyas well as ensure policies and resource allocation is better coordinated.Therefore, the adoption of program-based budgeting, as a whole, will result in increased efficiency in the management of government programmes by focusing on performance and improved accountability during the Plan period.

Ladies and Gentlemen,

8.Given the comprehensive nature of this topic and the challenges associated with programme-based budgeting, this workshop will be a unique event to discuss the current trends and efforts to plan and implement programme-based budgeting. This two-day workshop will use a mixture of presentations, discussions and group works to transfer knowledge and to facilitate the process of sharing experiences and mutual learning.

9.I hope that this two-day workshop will be fully utilised by all participants, in sharing knowledge and experiences on programme-based budgeting. In addition, I hope that the participants would take this opportunity to gain deeper understanding of programme-based budgeting so that the knowledge can be applied towards the smooth implementation of the 10th Malaysia Plan. Lastly, I wish to conclude by sincerely recording my thanks and appreciation to the central agencies and ministries for your attendance and the World Bank consultants for sharing their experiences and knowledge on programme-based budgeting in this workshop.

Thank you and Assalamualaikum.

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