2

Component A

Long Term

Fiscal Sustainability/

Fiscal Discipline

B1 •Nat Adm Pln

•Strategies

• Agenda …

Component C: Expenditure Analysis

•Budget Preparation Setting

Budget Preparation Process

Expenditure Analysis

Component D

Monitoring and

Performance

Evaluation

Component E

IT Support

Component F

Legal Framework

B2

•Off-Budget

•SOE

•PPP

Component B

Institutional Arrangmts

B3 Localities

3

PEM Objectives TOOLS

Maintain Long-term Aggregate Fiscal Discipline

Strengthen Strategic Allocation of Resources

Increase Operational Efficiency

Enhance Managerial Flexibility

and Accountability

Enhance Fiscal Transparency

• National Strategic Target • Ministerial Strategic Plan & Budget Ceiling • Integrated agenda based Budget Plan

• MTEF Top Down/Bottom up • Fiscal rules • Budget Ceiling • Ratio of Capital/ Operating Budget • Mid-Term Review

•Service Delivery Targets & Public Service Agreement • Output Profile • Performance Indicators • Realignment of Program-Activities-Outputs • PPP & other Public financial innovations • Performance measurement • Increasing roles of front line manager

• GFMIS •Improve Performance and Financial Report • Improve the Format of Budget Documents • Improve Budget Information System

4

1. Maintain Long-term

Aggregate Fiscal Discipline

5

MEDIUM-TERM BUDGET PLANNING FRAMEWORK

National Economic and Social Development Plan

Government Administrative Plan

MTEF (Top-Down)

MTEF (Bottom-Up)

Government Policy National Investment Plan

Annual Budgeting Ceiling Fiscal Policy Formulation

Budget Allocation Strategy

ANNUAL BUDGET PLANNING FRAMEWORK

Annual Budget Preparation

Macro-economic Outlook

Revenue Forecast

Public Debt and Fiscal Risks

Fiscal Rules

Demand of Funds Supply

of Funds

Tools for long-term Fiscal Discipline have been integrated into

the budget Process.

6

1. Ratio of Public Debts to GDP not more than 50%

2. Debt service not exceeding 15%

3. Budget Deficit not more than 2% of GDP

4. Annual borrowing not more than 20% of total

annual budget plus not more than 80% of annual

debt service budget

5. Capital expenditure no less than 25% of total

budget

7

2. Strengthen Strategic

Allocation of Resources

8

8

National Economic and Social Development Plan

Government Administrative Plan Government Policy

Ministry Strategy

Line Agency Strategy

4-year Operational Plan

Annual Operational Plan

4-year Operational Plan

Annual Operational Plan

Function Based

Provincial Cluster Strategy 4-year Operational Plan

Annual Operational Plan

Provincial Strategy 4-year Operational Plan

Annual Operational Plan

Area Based

Government Agenda

Agenda Based

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3. Increase Operational

Efficiency

10

Government National Strategy

Strategic Target

Ministry Ministry Strategy

Service Delivery

Target

Indicators

Department Service Plan

Indicators

ACTIVITY

OUTPUT

Indicators (Q,Q,T,C)

Process Evaluation

WORKPLAN/ PROJECT

11

4. Enhance Managerial

Flexibility and Accountability

12

• Pre evaluation (before budget spending)

• Interim evaluation (during operations)

• Post evaluation (after implementation)

13

5. Enhance Fiscal

Transparency

14

BOB’s ICT

EIS (Executive Information System)

www.bb.go.th

e - Budgeting

Planning

Evaluation

GFMIS

Preparation

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THANK YOU