Download Budget Execution and Monitoring

Budget Execution and
Monitoring
Ministry of Finance
Royal Government of Bhutan
(Chening Peldon)
Structure of the Presentation
1.
2.
3.
4.
5.
6.
7.
Legal Framework
Budgeting System
Budget Execution
Monitoring Issues and Challenges
Budget Reforms
Monitoring of Budget
Lessons Learned
Legal Framework
1.
2.
3.
4.
Constitution of Bhutan, 2008
Public Finance Act, 2007
Financial Rules and Regulations, 2001
Budget Call Notification
Budgeting System
 Program based budgeting
 Recorded till Object Code level
 Advantages
 Budget Cycle
 Multi-Year Rolling Budget
 Web-Based System
Budget Execution
 Fiscal transfer system
 Recurrent
 Capital (RGoB)
 External financing
 Budget Execution/Monitoring Issue
 Recurrent expenses
 Capital expenditures
Measures to overcome the
challenges
 Resource based budgeting
 Fiscal balance below 5% of GDP
 Rationalize recurrent expenses
Budget Reforms
 Web-Based System
 Formula based recurrent budgeting
 Financial decentralization/Financial
delegation
 e-release of funds/fiscal transfers
 Spending only through budget
appropriations (Constitution, PFA)
Monitoring of Budget
 Output monitoring- Physical (PFA,
2007)
 Mid-Year Budget Review
 Through expenditure reports
 Grants & Loans- Coordination with
focal agencies
Lesson Learned
 Incremental based budgeting to
resource based budgeting
 Financial monitoring to financial and
output monitoring
 Mid-Term Budget Review
 Coordination with aid coordinating
agencies
THANK YOU