Implementing budgetary reforms in Greece

Annex A. Detailed assessment of the Greek performance budgeting framework

Table A A.1. Performance budgeting framework in Greece

Tools and methods for developing performance information	Sequencing performance information	In development	Performance information is set at the programme level. Performance information includes performance objectives, a description of the main outputs and main activities, as well as performance indicators. Efforts have been made to link performance indicators to performance objectives. However, stronger linkages are needed to ensure that performance indicators are not stand-alone but measure the progress towards achieving performance objectives. Performance targets are set for the budget year and do not have a medium-term perspective.
	Avoiding overload of performance information	In development	There is a formal limit on the number of performance indicators to be included in the budget documentation. The explanatory texts pertaining to outcomes, outputs and activities are lengthy.
	Criteria for developing performance information	Established	The Ministry of Economy and Finance defines standards and criteria for developing performance information. These criteria are outlined in the budget circular and the performance budgeting manual. Performance information is required to reflect the priorities of the government, be outcome-oriented, be clear and specific, and follow SMART logic. The quality of performance information should be further enhanced to ensure relevance to budgetary decision-making and improve linkages between objectives and indicators.
	Quality assurance process	Established	The Directorate for the Evaluations of the Directorate-General for Fiscal Policy and Budget within the Ministry of Economy and Finance conducts a quality assurance process. After reviewing the submissions of the line ministries, the Directorate engages with line ministries on the improvements of performance information. Any remarks are discussed within a working group on Performance Budgeting and Spending Reviews.
Accountability and transparency	Managerial flexibility and accountability	In development	The rules governing transfers within and across the programmes are being established. Secretary-generals of line ministries sign-off on performance information put forth as part of performance budget.
	Reporting practices	In development	Performance reporting mechanism is being established, and the description of the reporting practices is included in the circular for the budget execution.
	Roles and responsibilities	In development	Well-established roles where the Ministry of Economy and Finance sets the overall framework and line ministries develop their own performance information. Parliamentary Budget Office (PBO) has shown interest in scrutinising performance information; however, their role should be further defined. The Supreme Audit Institution has shown interest in the oversight of the overall performance framework; however, their role should be further defined.
	Public access to performance information	In development	Performance information is published as part of the budget documentation on the dedicated page on the website of the Ministry of Economy and Finance. Performance information is not published in open-source formats, instead included in the Performance Budget which is published in PDF format. Performance information is not embedded within the websites of spending ministries. No dashboards that include performance information are available.
An enabling environment	Budget structured around programmes	In development	The budget that is voted on by Parliament is prepared on a line-item basis. The Performance Budget is prepared on the programme basis in parallel, however, Parliament does not vote on the programme basis. The Performance Budget is structured around policy sectors and programmes, and the sub-programme level is being developed. The programmes and sub-programmes are currently used only for informational and reporting purposes.
	Centrally issued guidelines and templates	Established	The Ministry of Economy and Finance issued Performance Budgeting Manual which aims to guide the line ministries in implementing performance budgeting. Additional guidance is provided annually in budget circulars. The Ministry of Economy and Finance provides standardised templates for collecting performance information. Performance information is presented in standardised manner in the Performance Budget.
	Capacity-building efforts	In development	The Ministry of Economy and Finance conducted training sessions for all line ministries on how to develop performance information. The Ministry of Economy and Finance organised workshops for Parliament and other key stakeholders to present the key features of performance budgeting reform. Additional training sessions are provided on ad-hoc basis.
	Supporting IT environment	Not yet established	The current IT system does not support performance information. Currently, performance information is collected through spreadsheets, however, the updates to the IT systems to incorporate performance information and support the implementation of programme budgeting are currently prepared.
	Incentive mechanisms	Not yet established	No formal incentive mechanisms are put in place.
Use of performance information to inform decisions around budget	Role of the Parliament	Not yet established	Parliament is aware of the performance information presented in budget documents, however, its involvement with this information is limited.
	Role of sectoral committees in the Parliament	Not yet established	Sectoral committees do not have a formal role in assessing performance information.
	Presentation of relevant information in budget documents	In development	Limited number of performance indicators are presented in the Performance Budget, however, some indicators presented in the budget are relevant for managerial decision-making and less relevant for decisions around budget. The outline of the Performance Budget can be further improved to increase its readability and accessibility.