Performance-Based Budgeting and Medium-Term Expenditure Frameworks in Emerging Europe

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In recent years, governments in many regions have adopted a wide range of reforms to make fiscal policies more consistent and effective over the medium-term and emphasize the impact of policies and spending. Two reforms - performance budgeting (PBB) and medium-term expenditure frameworks (MTEF) - have been central elements in improving the management of public finances. Both of these budget reforms have been on the agenda of most new European Union (EU) Member States and candidate countries. Six of these countries have been selected for this study: Bulgaria, Croatia, Latvia, Poland, Slovakia, and Turkey (Emerging Europe). The main purposes of this study were to (1) compile a comprehensive stock-take of the implementation of major budget reforms, including MTEF and PBB in particular; (2) identify the lessons from these experiences, including the constraints faced by these countries and some of their major challenges for the future; and (3) enable these and other countries in the region to better understand and compare these experiences and to identify some of the good practices and ideas they have developed in implementing PBB and MTEF reforms. The country reports and analysis contained in this study were based on responses to a questionnaire filled out by World Bank experts, mostly in close consultation with the relevant national authorities. Finally, the study recognizes that although the MTEF and PBB reforms adopted in these in six countries are far from complete, however, these Emerging Europe countries are, to varying degrees, now taking significant steps down a worthwhile path.
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Kąsek, Leszek; Webber, David. 2009. Performance-Based Budgeting and Medium-Term Expenditure Frameworks in Emerging Europe. © Washington, DC. License: CC BY 3.0 IGO.
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