OECD Journal on Budgeting

Frequency :
1681-2336 (online)
1608-7143 (print)
Next Issue: 27 Aug 2014
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The OECD journal on public sector budgeting, published three times per year. It draws on the best of the recent work of the OECD Working Party of Senior Budget Officials (SBO), as well as special contributions from finance ministries, and makes it available to a wider community in an accessible format. The journal provides insight on leading-edge institutional arrangements, systems and instruments for the allocation and management of resources in the public sector. Now published as a part of the OECD Journal subscription package.

Also available in: French

Latest Articles Hide / Show all Abstracts

Mark Number Date Article Volume and Issue Click to Access
  10 July 2014 Budgeting in Albania
Knut Klepsvik, Richard Emery, Brian Finn, Regina Bernhard

The Republic of Albania is located in south-eastern Europe and has a population of 2.8 million (2011 census). It was established as a unitary parliamentary republic in 1991 after 46 years of Communist rule. This review of the budget process of the Republic of Albania was carried out as part of the work programme of the OECD Working Party of Senior Budget Officials. In preparation for the review, a team for the OECD Secretariat led by Knut Klepsvik undertook a mission to Tirana from 29 October to 2 November 2012. The substance of this review is divided into 4 sections which details the budgeting process in Albania and includes an Annex summarising recent budget reviews that have taken place in the country.

JEL classification: H50, H61, H83, O21, O52
Keywords: Annual budget, budgetary process, budget structure, fiscal policy, fiscal rules, parliamentary budget, procurement.

Online first Click to Access: 
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/budgeting-in-albania_budget-13-5jz14bz8n86d
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  10 July 2014 Spending reviews
Marc Robinson

This article focuses on the optimal design of spending review processes. It contents that sending review should be an integral part of the government budget preparation process, in order to support aggregate fiscal discipline and to increase the fiscal space available for essential new spending initiatives. The article discusses the appropriate focus and coverage of spending review, the assignment of roles and responsibilities during the process, and the information base of spending review.

JEL classification: H500, H610.
Keywords: Baseline expenditure, fiscal space, savings options, efficiency reviews, strategic reviews, bottom-up review, joint review, top-down review, comprehensive review, selective review.

Online first Click to Access: 
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/spending-reviews_budget-13-5jz14bz8p2hd
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  17 June 2014 The metamorphoses of performance budgeting
Allen Schick

Performance budgeting (PB) emerged more than 60 years ago as a key driver of budgetary innovation in the United States. Due to its often lofty goals, PB initiatives were rarely successful, but have instead reappeared, in different forms and with new labels.
This article focuses on contemporary PB transformations, explains their rationale and objectives, and assesses their prospects in eight sections. Due to the fact that PB defies standardisation and countries differ in their approaches, the versions discussed here do not fit all venues, nor would all observers agree that they are sufficiently distinguishable from one another to warrant distinctive labels. PB, however, has some basic features that cut across all its mutations, though the way they are framed or applied may differ among the various approaches.

JEL classification: H60, H61, H68
Keywords: Budget allocation, budget framework, expenditures, implementation, line items, performance budgeting

Online first Click to Access: 
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/the-metamorphoses-of-performance-budgeting_budget-13-5jz2jw9szgs8
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  17 June 2014 Budgeting for fiscal space and government performance beyond the great recession
Mario Marcel

In the course of the prolonged economic crisis that started in 2008, fiscal space has become a scarce commodity in OECD countries. This has not only broadened the appeal of a concept originally raised by emerging countries in the early 2000s, but has also extended its meaning to recognise its intertemporal nature and to highlight its endogenous features. Current projections indicate that fiscal consolidation needs and the effect of demographic change on social security may shrink non-pension fiscal space in OECD countries by some 18% between 2011 and 2030, exceeding current consolidation plans in many countries. The response to these needs should take place increasingly through budgets rather than ad hoc consolidation packages. To this end, the quest for fiscal space needs to be mainstreamed into budgeting by developing appropriate tools and procedures; the effort needs to extend beyond the annual budget process both in timeframe and scope; and many actors need to contribute to this effort in addition to ministries of finance and budget offices. In other words, generating fiscal space at the required scale needs not only a substantial revamping of budget practices, but also revisiting the temporal and institutional framework within which budgeting takes place.

JEL classification: H50, H61, H83
Keywords: Budget practices, budget framework, economic crisis, fiscal space, fiscal consolidation, incrementalist, performance, recession

Online first Click to Access: 
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/budgeting-for-fiscal-space-and-government-performance-beyond-the-great-recession_budget-13-5jz2jw9t0pd3
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  23 Dec 2013 The politics of fiscal austerity
Paul L. Posner, Matthew Sommerfeld

The sustainability of national economies will ultimately require a balance between near-term growth and longer-term fiscal consolidation. The question that is now being raised is whether such actions are politically sustainable. As the OECD area begins to emerge from the recession, another question is whether democratic countries can take pro-active leadership before a crisis forces their hand. This article examines the politics of fiscal consolidations in OECD countries in recent years, assessing whether and how leaders attempted to resolve the tensions between the fiscal and electoral imperatives.

JEL classification: H610, H620, H630, H680, P160
Keywords: Fiscal consolidation, sustainability of public finances, deficit, debt, Great Recession, financial crisis, political efficacy, democratic institutions, fiscal austerity, economic growth, role of political institutions, budget cuts, fiscal rules, political outcomes

Volume 13 Issue 1 Click to Access: 
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/the-politics-of-fiscal-austerity_budget-13-5k3w6lk42l33
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  23 Dec 2013 Budgeting levers, strategic agility and the use of performance budgeting in 2011/12
Ian Hawkesworth, Knut Klepsvik

Governments need to be able to quickly and flexibly reallocate resources from one priority to another. This article addresses this dimension of strategic agility in terms of managing the reallocation of resources in the public sector through the use of various budgetary tools. The focus is on recent fiscal consolidation efforts, the use of performance information and spending reviews, and automatic productivity cuts. This article draws on the OECD survey on performance and results that was conducted in 2011/12; the data are accurate as of November 2012.

Volume 13 Issue 1 Click to Access: 
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  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/budgeting-levers-strategic-agility-and-the-use-of-performance-budgeting-in-2011-12_budget-13-5k3ttg15bs31
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  23 Dec 2013 Capital budgeting and procurement practices
Philippe Burger, Ian Hawkesworth

Capital investment is a key function of government. However, for a number of reasons it has proven difficult for governments to ensure that capital investment represents value for money, is affordable, and is budgeted and accounted for in a prudent and transparent manner. This article discusses these challenges facing governments. Using the findings of a survey conducted among OECD countries and enhanced engagement countries in 2012, this article provides an overview of what governments are doing with respect to planning and prioritisation, procurement, construction, operation and management, monitoring and evaluation, and budgeting and accounting for capital projects. The article concludes with a number of recommendations for capital budgeting and procurement.

JEL classification: H400, H540, H570
Keywords: Capital investment, capital budgeting, capital projects, value for money, budgeting systems, accounting systems, transparency, procurement, public-private partnerships, PPPs, TIP, traditional infrastructure procurement

Volume 13 Issue 1 Click to Access: 
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/governance/capital-budgeting-and-procurement-practices_budget-13-5k3w580lh1q7
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