OECD Public Governance Reviews: Paraguay

Pursuing National Development through Integrated Public Governance

image of OECD Public Governance Reviews: Paraguay

Paraguay has identified public governance reform as an important tool for achieving sustainable and inclusive growth. This review examines areas of public governance such as co-ordination across administrative silos, strengthening links between budgeting and planning, and enhancing the decentralisation process to improve development outcomes in all regions of the country. It also assesses the management of the civil service, as well as the implementation of open government strategies and initiatives to involve citizens and businesses in the policy cycle. This review provides concrete recommendations to support public governance reform in Paraguay.

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Linking strategic planning to budgeting

Paraguay has developed interesting practices for ensuring alignment of annual budgets and capital expenditure with strategic policy objectives, such as the formulation of a national development plan with a long term planning horizon, reforming the budget structure and setting annual targets at the institutional level. Despite these improvements, the country faces challenges respecting the sustainability of such reforms and the need to complement these efforts with more developed performance-budgeting and robust medium-term budgeting frameworks.

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