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1
Kestutis Rekerta Strategic Planning Division, Government Office of Lithuania
World Bank Workshop, Bratislava, September 6, 2006
STRATEGIC PLANNING IN LITHUANIA
2
Factors that determined the introduction of strategic planning
Poor state financial situation in 1997-1999 current account deficit – 12 % fiscal deficit – 11 % in 1997 Government stock interest rate - 12–14 %
International public sector development trends New Public Management – UK, USA, New Zealand, Canada, Sweden, etc. strategic planning (management) as a way to manage performance and finance
Support of the Canadian Government negotiations regarding Canada-Lithuania Public Administration Reform Project
started in 1997-1998
3
Today‘s situation
The annual government deficit 0, 5 % GDP in 2005 (convergence criteria 3 %)
Government debt 18, 8 % GDP in 2005 (convergence criteria 60 %)
Inflation rate 2, 7 % in April 2006 (convergence criteria 2, 6 %) Government long-term interest rates 3, 8 % (convergence
criteria 6 %) Participation in new exchange-rate mechanism (ERM II) from
2004 Country’s credit rating is A (Standard and Poor’s 15 June 2006)
4
Canada-Lithuania PAR project (1998-2003)
Project objectives:1. To introduce a strategic planning model across government 2. To improve the Government’s decision-making system
Canadian project participants:Ontario Cabinet Office, Prime Minister’s Office,Ontario Public Service, Canadian Institute of Public Administration
Lithuanian project participants Government Office, Prime Minister’s Advisers, ministries, Government Agencies and other public sector organisations
5
Reform stages
1999-2002: implementation of strategic planning 1999 – pilot projects in 5 ministries 2000 and later – budgeting process follows the principles of strategic
planning and program budgeting acros all public institutions
2003-2004: implementation of impact assessment up to 2003 – positive and negative impacts on the society is assessed of
only those proposals submitted to the Strategic Planning Committee since 2003 – impact of all Government proposals is assessed following
the recommendations of the impact assessment manual
6
Main accomplishments (1)
Strategic planning as a planning and management tool is institutionalised in the following documents: Law on Government
Law on budget
Procedures for the preparation and implementation of state and local government budgets
Annual budget formation calendar
Strategic planning manual
7
Main accomplishments (2)
Cabinet Strategic Planning Committee established and functioning
Strategic planning manual approved in 2000 (revised in 2002 and 2004), obligatory for all appropriation managers and recommended to the municipalities
Ministry and Government Agency strategic activity plans approved by the Government beginning 2001
Ministry strategic activity plans published (on the Internet) and available to society
Procedures for the monitoring of program implementation approved in 2001; institutions report for the implementation of tasks foreseen in the plans
8
New reporting requirements approved in 2002; institutions report on the progress achieved implementing strategic activity plans
2002 budget accounts report submitted together with performance measures and allowed to compare planned and achieved results Strategic planning working group established and headed by the Government Chancellor; its mandate is to improve strategic planning process
Long-term state development strategy approved by Parliament in 2002
Commission for the monitoring of the implementation of Long-term state development strategy established in 2003
Impact assessment manual approved in 2003; obligatory for all proposals submitted to the Government
Main accomplishments (3)
9
Ministries, Government Agencies and counties established Internal audit units; Internal audit guidelines approved by the minister of finance
Since 2004 Internal audit units are being established in municipalities
Municipalities started to implement strategic planning into their activity and apply the approved manual
Main accomplishments (4)
10
The Structure:Integrated Planning and Budgeting
Strategic PlanningCommittee
Cabinet
Ministry ofFinance
Chancellery: Planning Unit
Line Ministries
new
new
Ministry strategic planning group, internal auditors
Ministry strategies
achieve mission and goals, and
address potential risks
Government’s strategic priorities
contribute to ministry mission
and goals
Achieving Results:Performance Measures
ministry mission
ministry strategic goals
programs
program goals
objectives
activities
Ministry Planning
Ministry Strategic Planning Process
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The Model: Integrated Planning and Budgeting
Set Government Strategic Priorities
Evaluate Results,Review Strategies & Environmental Scan
Set Fiscal Strategy,Set Ministry
Planning Allocations
Monitor Legislation& Budgets; Adjust If
Required
Ongoing:Review Macroeconomic &
Fiscal Indicators;Update Fiscal Plan
Approve MinistryStrategic Activity
Plans
Approve Draft Budget,Approve Legislative
Program
13
Integrated Planning Model
Strategic Activity Plan
Pro
gra
m
No
.1
Pro
gra
m
No
…
Strategic Activity Plan
Pro
gra
m
No
.1
Pro
gra
m
No
…Strategic
Activity Plan
Pro
gra
m
No
.1
Pro
gra
m
No
…
Long-Term Goals (vision)
(more than 6 years)
Mid-Term Goals
(3 to 6 years)
Short-Term Goals
(1 to 3 years)
Strategic Framework Documents:
• Economic Strategy• Regions’ development plans• EU accession & NATO Documents
(NDP, NPAA, NNIP, PEP)
Fiscal Strategy and Ministry Ceilings
Government’s Strategic Priorities
Sec
tor S
trategy
Sec
tor S
trategy
Sec
tor S
trategy
Long-Term State Development
Strategy
Geopolitical situationLong-term prioritiesLong-term vision for sectors
14
Factors Stimulating the Reform
Strong political will Standing body to lead and review the reform Qualified civil servants Aspiration for European integration Institutionalisation of reform results Attitude of the society towards public administration Poor financial situation of the state
15
On-going improvement and challenges for the future
Integration of different planning processes:- Single Programming Document (integrate into existing programs)- Plan for the Enhancement of Administrative Capacities- Integration of the information society development
Better performance measures
Improved quality of strategic activity plans
Decreased number of strategic business plans (i.e. to decrease the number of appropriations managers)
16
On-going improvement and challenges for the future
Coordination of subordinate agencies’ performance (ministries approve their subordinate agencies’ plans)
Alignment of institutional goals, objectives and performance measures with departmental and individual performance measures
Alignment of individual performance appraisal with motivation of public servants
Alignment of individual performance appraisal with improvement of competencies and qualifications
17
Possible ways to improve
Recommendations on how to devise performance measures
Training of civil servants
Departmental and individual plans with expected targets; reporting on the progress
Performance contracts between heads of units and their subordinates