Improving costing in government policy making and strategic planning processes

Costing, as an integral part of strategic planning process and as a building block of the fiscal impact assessment, unlocks the potential for synergy between the strategic planning and budget planning.

The project served to establish a comprehensive, methodologically sound framework for the costing of government policies and to improve administrative capacity and legislative framework in the strategic planning processes.

Context

Poor linkages among strategic planning and budgeting are hindering the development management in Croatia, as these processes are being perceived and are being performed as separate actions.

Croatia is faced with an opportunity to accelerate recovery and development by using EU funding while implementing strategies, reforms and policies, but this can be done efficiently only if the proper synergy between strategic planning and budgeting is created.

Sound framework for costing of strategies, reforms and policies is needed to support this approach, while continuously building capacities within the public administration through establishment of common methodology and costing practices.

Support delivered

The European Commission provided support for carrying out the project for the Ministry of Development and EU Funds in Croatia.

Pilot costing exercise was conducted for 22 selected reform measures of 5 institutions, followed with a fiscal and macroeconomic assessment. Guidance for costing was developed along with an excel tool for cost calculation. The capacity building workshop and an e-learning module was created and distributed for further use. A proposal for introducing costing into the legislation was drafted to create sustained outcome for the beneficiary.

Results achieved

The project resulted with a basis (guidelines, methods, tools) for the beneficiary to continue efforts in introducing proper costing practices.

Close cooperation with the beneficiary institutions in costing of reform measures resulted in knowledge transfer, deepened with the capacity building and materials to be used in the dissemination of knowledge across the public administration.

The project has facilitated considerations of introducing costing into the legislation, shaping possible solutions that could lead to the sustainability of the reform being implemented.