Linking performance indicators to national budgetary processes
The Ministry of Plan Implementation in collaboration with the Ministry of Finance and Planning recently introduced a new concept in the national budgetary process of Sri Lanka. According to the Budget Call 2010 issued by the Treasury to the Secretaries of Ministries, the Ministries are expected to submit their budget requirements and, at the same time, identify their key performance indicators in the Agency Results Framework. Simply put, this means that from now on funding for Ministries will be closely tied to their performance or how well they are meeting their identified targets. Take the Ministry of Agriculture, for instance. The Ministry has identified a number of time-bound targets for the next year. One of the targets includes increase in paddy production. At the end of the 2010 budget year, the Ministry’s performance for that particular goal will be reviewed and the result would impact the funding they receive for the next year.
Dr. Frederick Abeyratne, Senior Programme Analyst at UNDP described the initiative as the start of a long-term performance-based development plan. He said, “Linking performance indicators to national budgetary process will contribute towards achieving the Millennium Development Goals in the long-run”. He also indicated that UNDP is supporting the Ministry to launch similar initiatives at the sectoral level as well. Mr. V. Sivagnanasothy at the Ministry of Plan Implementation said the initiative creates a “culture of ‘accountability for results’ in the Government. It is a new management style which holds public officers to report on results ‘rather than efforts”, he added.