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Strategy and policy
Reform Support

Alignment of current budgetary expenditure with policy objectives

Supporting reforms to ensure efficient and effective revenue administration and public financial management

Funding Programme
Year
  • 2021

Alignment of current budgetary expenditure with policy objectives

The Commission provided proposals for an improved Public Spending Code especially for Current Expenditure, in line with best international standards and linking expenditure to Government spending and well-being goals.

Context

The Department for Public Expenditure and Reform in Ireland requested technical support to update the Government’s Public Spending Code, specifically, the sections referring to the ex-ante evaluation of current expenditure proposals. The Code in this area was introduced in 2013 and would benefit from recommendations to update the frameworks in the Code and the Code’s application. The Department has identified the importance of implementing international examples of practice from comparable countries following the crisis that began due to the economic impact of the coronavirus (CO VID-19) pandemic.

In parallel, the 2020 Programme for Government refers to the development of a national wellbeing budget framework to help guide budgeting and resource allocation. This project aimed to highlight new ex-ante evaluation methods and processes stemming from the new framework.

Support Delivered

OECD in cooperation with the Irish Department of Public Expenditure and Reform delivered: 

  1. Recommendations on updating the Public Spending Code for ex ante evaluation of current expenditure, integrating findings from case studies and wellbeing frameworks.
  2. A technical note comparing ex ante evaluation practices in Ireland and five peer countries.
  3. A guidance note linking current spending proposals to Ireland’s wellbeing framework, providing practical recommendations for government agencies.
  4. Capacity-building workshops for stakeholders, aimed at increasing awareness of the proposed changes to the Public Spending Code and enhancing understanding of the budget process.

Results achieved

The project successfully improved and standardized the ex-ante assessment process for current spending proposals, as outlined in the Public Spending Code. The new process is now rapid, efficient, easy to apply, and robust, ensuring a streamlined approach to evaluating future spending. Additionally, the process has been integrated with the national well-being framework, enabling spending proposals to be better aligned with high-level objectives. This alignment has ultimately led to more focused budget allocations and more strategic, goal-oriented spending.