Performance-Based Program Budgeting in Slovakia: A Lost Opportunity (?)

Abstract

Slovakia, with support from the World Bank, made efforts to link inputs with outputs under the concept of programme budgeting during its public finance reform in 2004. The goal of introducing programme budgeting was to develop a budgetary system that would be transparent to the public and permit judgement of the purpose and resultant effect of resource spending. This chapter evaluates what was really achieved. The findings are not very positive. Based on the analysis of the status of programme budgeting within the Slovak self-government, it can be said that currently no conditions have been created for the real implementation of programme budgeting as a performance enhancer. Most of the indicators that were used were just nominal output indicators; relative output and outcome indicators were very rare. Self-governments do not attach much value to the real monitoring of performance outcomes. If we look at the targets, it is clear that many were inserted to fill a space and are not connected with reality. The core reasons for the non-functionality of programme budgeting in Slovakia are connected with both the administrative complexity of the programme budgeting system used in the country and the lack of human resources to implement the scheme.