FREQUENTLY ASKED QUESTIONS (FAQ) ON THE PROGRAM AND PERFORMANCE BUDGETING SYSTEM (PPBS)

Q22. How did the Ministry of Planning introduce PPBS?

The following were the key steps that the ministry took in introducing PPBS:

1. It sought consensus among senior managers on the need for budget reform.

2. Senior management decided to reform the budget along performance budgeting lines;

3. It establishing the institutional framework to develop and implement a performance budgeting model. This framework includes the steering committee chaired by the Undersecretary to decide and supervise the development of the reform package and its subsequent implementation. It also includes the project team headed by the Assistant Undersecretary, Administration and Finance that is tasked with implementing the reform;

4. The steering committee decided on the PPBS model that it considered best suited to the Kuwait public service. In this the steering committee was guided by the 2002 IMF Report on “Kuwait: Restructuring the Budget Processes”;

5. An implementation action plan was drafted to implement the steering committee decision (see Box below);

6. The program and activity structure that includes all MOP operations was developed;

7. A program budget in the form of a program statement was prepared for each activity in the program structure;

8. The steering committee reviewed the implementation process to ensure proper implementation according to the action plan; and

9. The program budget is executed and performance is monitored and reported for any follow-up action.

The figure summarises the implementation process.

Figure 1

The Implementation Process

Box

The PPBS Implementation Action Plan

To ensure that the 2003-2004 MOP budget presentation is on the PPBS format, the following activities were carried out:

May – June 2002

· Discussions with the senior officers on:

§ The current budget process and system;

§ IMF recommendations;

§ Mission statements of MOP and the sectors;

§ Suggestions to reform the existing system;

§ Acceptance and commitment to PPBS;

§ Exposure on PPBS to Finance Sector staff; and

§ Preparation of an action plan.

· Circular on PPBS implementation

July – August 2002

· Clarifying the goals and objectives of the MOP;

· Seminars and forums on PPBS; and

· Discussions on the restructuring of the budget on the programme-activity format with the Finance Sector and other sector heads.

· Approval of the SC on the proposed budget structure.

September – October 2002

· Training on the development of program statements;

· Drafting program statements; and

· Approval of the SC to the proposed write-ups.

November – December 2002

· Drafting program statements; and

· Approval of the SC to the proposed write-ups.

January – February 2003

· Training on Strategic Planning

· Training on Performance Measurement

March – April 2003

· Preparation of the Implementation Manual

· Training on Program Evaluation

May – June 2003

· Final Report and recommendations for the continued implementation of PPBS in MOP.

· Budget submission on the PPBS format.

· Completion of the Implementation Manual