Specialists in finance trained to employ performance-based operations
The Business Consulting Institute (BCI) and the Polish foundation PAUCI are holding training seminars for specialists of the Chisinau financial divisions, representatives of mayors' offices of the settlements that form part of the municipality of Chisinau and accountants on the switch from linear budgetary operations to performance-based operations, Info-Prim Neo reports.
BCI consultant and project coordinator Veaceslav Bulat said the performance-based budgetary operations differ from the traditional ones. Special attention is paid to efficiency by comparing the resources with the results. Measurable parameters are defined for every budgetary task, every program or service financed from the budget, like the cost per unit of time.
“The linear budgetary operations lay emphasis on revenues, while the performance-based ones focus on what is obtained from the invested money. For example, if we allocate a sum of money for cleaning a street, we must report what section of street was cleaned, how many persons were involved and if the set performance objectives were achieved,” Bulat said.
According to the expert, Poland has an experience of 10 years as regards the implementation by the local public authorities of the strategy for planning the budget on the basis of performance. Another five pilot-projects are implemented in Moldova in parallel with this project – in the districts Floresti and Stefan Voda and in Ungheni, Comrat and Balti towns. A project was selected in Floresti that will be implemented under the local development strategy. The budget will be planned basing on performance.
The authorities in Chisinau plan to make the switch from linear budgetary operations to performance-based operations starting with 2011. According to the Ministry of Finance, from 2012 this method will be implemented in all the mayors' offices of Moldova.
The seminars in the municipality of Chisinau will take place throughout this week.