Sequencing and Pacing of the Austrian Federal Budget

Sequencing and Pacing of the Austrian Federal Budget Reform Veronika Meszarits Advisor Budget Reform veronika. meszarits@bmf. gv. at OECD Network on Performance and Results, Paris, 27 Oct. 2008

A comprehensive reform implemented in 2 stages As As of of 20 20 13 09 –m • MTEF (legally binding medium term expenditure framework) ac ro icr lev ol el ev el Result-oriented –m management of state bodies • Full carry-forward possibilities for line ministries without earmarking Performance Budgeting New budget structure: „global budgeting“ Accrual accounting and budgeting 2

Sequencing and pacing of the reform • Time dimension: “big bang” 2009 & 2013 with sufficient phasing-in • Conceptual dimension: legal framework no way back! • Strategic dimension: getting key players on board, particularly political level OECD Network on Performance and Results, Paris, 27 Oct. 2008 3

The conceptual dimension – “no way back” • Both stages of the Budget Reform require an amendment of the legal framework Necessary Legal Amendments Adoption 1 st stage as of 2009 Constitution Dec. 2007: Unanimous decision Budget Law Dec. 2007: Unanimous decision 2 nd stage as of 2013 Constitution Budget Law Dec. 2007: Unanimous decision Planned for 2010 OECD Network on Performance and Results, Paris, 27 Oct. 2008 4

The strategic dimension – getting key players on board • Mo. F = Director(ate) General Budget: Reform driver and standard setter • Politics and Parliament: - “Advisory Council Budget Reform” with parlamentarians of all political parties - Regular information/meetings Mo. F with Council - Keeping the reform out of the political debate • Court of Audit: Evaluations included in budget documents • Line Ministries: Continuous involvement, pilot projects 2011, parallel operation 2013 Cultural change takes time, continuous communication is important OECD Network on Performance and Results, Paris, 27 Oct. 2008 5