France’s performance framework: lessons

learned and perspectives

OECD

Bangkok, December 15th 2016

Marine CAMIADE, deputy director of the French budget directorate, Ministry of Economy and Finances

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1. Characteristics of the new framework

A budget framework organized according to the main public policies

A results-oriented budget

New chain of responsibilities

2. Impact of the performance framework

In the Parliament

Inside the Government and the administration

3. Ways of improvement

Summary

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Before 2001

A budget framework organized according to the main public policies

31 missions

122 programmes according to the main public policies

The framework set up in 2001

30 ministries

850 chapters according to the nature of appropriations

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12 décembre 2016

Example : mission Justice

A budget framework organized according to the main public policies

Judicial system

Before: 30 chapters

- Staff expenditure

- Social contributions

- Staff allowances

-Operating expenditure

-Real estate cost

-IT cost

-Procurements...

- Capital expenditure for prisons

- Capital expenditure for the

judicial system

- Subsidies to associations

-Subsidies to the judicial training

college -Legal aid

-…

Judicial system

Prisons

Legal protection for under 18s

Access to justice and legal aid

Support for judicial policy and

related organisations

After: 5 programmes

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■ Zero-base budgeting (“first-Euro

justification of appropriations”)

■ Performance targets and indicators

■ Cost analysis of actions

■ More autonomy given to managers

⇨ “asymmetric fungibility”

■ Presentation of achievements

A results-oriented budget

Set up in the

annual budget bill in

october

(blue documents)

Execution -

Management

Reporting (red

documents attached to

the budget review act)

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The blue (october) and the red (april) documents

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A results-oriented budget : performance objectives and indicators

Mission

Programme Programme Programme

Action Action Action

The new budget structure

384 objectives

756 indicators

80 objectives

et 90 indicators

8 A results oriented budget : 846 indicators

SOCIAL-ECONOMIC EFFECTIVENESS (citizens’ view)

• Healthcare

• Security

• Economic development

• For example, for justice : rate of recidivism/reoffending

SERVICE QUALITY (users’ view)

•Wait time : For example : wait time to get a judgement •Satisfaction rate •Accessibility

EFFICIENCY (taxpayers’ view)

• Productivity. For example : number of cases dealt with on average by a judge.

• Unit cost.

• Administrative charges (IT, real estate, procurements…)

46%

35%

19%

9 A new chain of responsibilities

Parliament

National audit office

Government

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1. Characteristics of the new framework

A budget framework organized according to the main public policies

A results oriented budget

New chain of responsibilities

2. Impact of the performance framework

In the Parliament

Inside the Government and the administration

3. Ways of improvement

Summary

11 Impact - In the Parliament

Strenghts

The performance framework and the budget documentation are heavy :

more than 10 000 pages

more than 700 indicators

heavy to produce

sometimes too technical and difficult to understand

Even if poor results are obvious, it is difficult to determine the right response (do you have to increase means or on the contrary to reduce them ?)

Finally, performance results are not much used in the discussion in the Parliament and there is no direct link between them and budgeting.

Twice a year, the Parliament receives a comprehensive documentation for each public policy with :

A “zero base” justification of appropriations

Performance objectives and indicators :

Targets in october

Outturn in april

The quality and accuracy of this documentation is verified :

By the budget directorate

By the national audit office that, each year,

produces a budgetary implementation report

certifies accrual accounts.

Limits

12 Impact– In the Administration

Strenghts

It is sometimes difficult to determine who is responsible for a public policy when it implies various actors/partners.

Little interest of Parliament for public managers’action and results

Few levers to boost public employees’productivity

Performance based remuneration is barely developed (between 0 and 10 % for high civil servants ; none for other public employees)

Automatic career advancement system (connected to seniority only)

It is important to develop non financial recognition and encouragement.

The performance framework reaches all levels of administration, including operational units all over the territory

Performance indicators are used to monitorate local operational services

They can help to determine the distribution of staff or appropriations between different operational units

They can be used in the management of high civil servants

Performance indicators are used in order to set managers’objectives

Limits

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1. Characteristics of the new framework

A budget framework organized according to the main public policies

A results oriented budget

New chain of responsibilities

2. Impact of the performance framework

In the Parliament

Inside the Government and the administration

3. Ways of improvement

Summary

14 Two main ways of improvement

Make our framework :

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1- More comprehensive = covering all public spending

2-Simple and understandable for MPs and citizens

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central government

26 %

state agencies

6 %

local authorities

20 %

social security system 48 %

1- Make our framework more comprehensive

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French public spending is split into numerous actors

16 1- Make our framework more comprehensive

Harmonizing budget frameworks and

sharing fiscal rules

2001

Central government

and state agencies

2005

Social security

2012

Local Authorities

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2012 : new

fiscal rule

(Golden rule)

17 2- Make the framework simple

■ Streamlining the framework

For the central government for example :

– Reducing the number of programmes : by 10 % over the past 10 years

– Reducing the number of indicators : by a half over the past 10 years

– should performance indicators cover all programs equally or should we take into

account some criteria

Budgetary stake ;

Ability to quantify the notion of « performance »?

■ Strenghtening the link with government priorities

– A dashboard of 10 key national indicators was set up and published for the first time last

september

■ Improving the communication on performance

– A synthesis that focuses on the main results is published every year with the budget review

act, since last year

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18 Conclusion

■ No direct link between performance and budgeting

■ But performance information is necessary

■ One tool can’t do everything : performance framework

should be simple, comprehensive and accompanied by

– Deeper spending reviews

– Binding fiscal rules

THANK YOU FOR YOUR ATTENTION

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