Volume of financing for performance budgets rises every year

The volume of financing for program-based budgets or so-called performance budgets increases from year to year. The number of public authorities that use this budget planning method also rises, director of the Urban Development Institute Veaceslav Bulat, expert in regional and decentralization polices, said in an interview, Info-Prim Neo reports. According to Veaceslav Bulat, the volume of financing for performance budgets in 2007 was 2.88 billion lei, while in 2009 this figure rose to 5.61 billion lei. The number of public authorities that use this budget planning method rose from 12 to 18. Currently, the revenues of performance budgets cover over 30% of the public spending. “Performance-based budgeting allows monitoring how the money allocated from the budget is used and what results are achieved,” the expert said. Within the Joint Integrated Local Development Program implemented by the Government of Moldova with the assistance of UNDP Moldova and UNIFEM and with financial support from the Swedish Government, there was implemented a pilot performance-based budgeting project in Balti, Floresti, Ungheni, Comrat, and Stefan-Voda towns. The project was aimed at increasing the capacities of the public authorities of the given towns. They were familiarized with more efficient instruments for planning budges and involving the population in decision-making. The local public administrations of the five towns devised and implemented projects to improve the services provided for the population, excluding certain costs and saving money for covering other needs. From 2012, performance-based budgeting will be extended to the revenues of the state budget and the local budgets. This transition process will be facilitated by a technical assistance project financed by the Government of Slovakia, which has experience in performance-based budgeting. The Joint Integrated Local Development Program aims to strengthen legal and regulatory frameworks and streamline local administrative procedures and systems. There is an emphasis on developing and implementing a framework for the effective delegation of authority to the local public authorities, fiscal decentralization to deliver essential services, and the promotion of a greater role for women in decision-making bodies.