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Budgeting for societal goals: Putting it all together - Andrew BLAZEY, OECD

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This presentation was made by Andrew BLAZEY, OECD, at the OECD-MENA meeting dedicated to Budgeting for Societal Outcomes: Gender, Youth and Sustainable Development Goals Budgeting, held in Caserta, Italy, on 18-19 July 2019

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Budgeting for societal goals: Putting it all together - Andrew BLAZEY, OECD

  1. 1. SESSION 6: BUDGETING FOR SOCIETAL GOALS: PUTTING IT ALL TOGETHER Public Governance Directorate OECD Middle East and North Africa Senior Budget Officials’ Network Caserta, Italy 18 – 19 July 2019 Andrew Blazey Public Governance Directorate, OECD
  2. 2. 1. Budgeting for societal goals – Sustainable Development Goals – OECD Better Life Index – Paris Agreement 2. Case study: the New Zealand Wellbeing Budget 3. Concluding observations 2 Introduction
  3. 3. 1. Budgeting For Societal Goals 3 Three examples:  Sustainable Development Goals  OECD Better Life Index  Paris Agreement
  4. 4. 4 Sustainable Development Goals Source: United Nations
  5. 5. 5 OECD Better Life Index Source: OECD Better Life Index 2017 • 11 Domains, measured since 2005 • Since the Global Finance Crisis, income has increased, but other aspects have not kept pace • Examples include: civic engagement; social support; and housing quality • Case study: How’s life in Australia?
  6. 6. 6 Paris Agreement on Climate Change
  7. 7. 7 OECD Performance Budgeting Reflection of SDG targets and indicators in national frameworks (2018)
  8. 8. • Establishing a long-term national plan based on the SDGs • Identifying the estimated cost of achieving the SDGs e.g. the SDG infrastructure gap • Mapping a budget against the SDGs • Establishing data sets to track progress • Implementing evaluation systems to improve policy. • Co-ordinating implementation across the public sector and its stakeholders 8 SDGs and Budgets: An ambitious agenda
  9. 9. • Improves policy coherence – To ensure one budget decision does not negatively impact on another – Make progress towards international commitments • Budgeting to SDGs can increase accountability – Increases awareness of dependencies • Budgets will become more comparable over time – Country circumstances define the character of budgets 9 Assumptions Countries experiences: Identifying the relevance of budgets to policies: − Finland: explain the purpose of the policy − Sweden: identify the link between a policy and the SDGs − Mexico: links budget programmes to SDGs
  10. 10. Challenges • Tools are in the early stages of development • Data gaps and time lags are material • SDGs do not always map to ministry accountabilities • Difficult to allocate resources –policy design is as important as funding • The private sector plays a pivotal role, but the role is not well defined 10 Budgeting challenges and opportunities Opportunities • Increases the profile of SDGs and makes the Goals relevant to political debate, policy and the allocation of public resources • Improves the clarity and purpose of budget proposals • Links outcome and performance information to the budget processes
  11. 11. 11 Core elements across early adopters • National plan or strategy • High-level political support • Nationally-determined priorities • Ministry of Finance co- ordinates, pilots, initiatives • Analysis of challenges and opportunities • National Statistics Office • Audit Institutions • Analytical tools • Ministries use the SDGs to influence resource allocations • Parliament • Non-Governmental Organisations • Academics • International Organisations Leadership Central co-ordination ImplementationStakeholders
  12. 12. 2. Case Study: The New Zealand Wellbeing Budget 12
  13. 13. 13 Wellbeing Budget 1. Taking Mental Health Seriously – Supporting mental wellbeing for all New Zealanders, with a special focus on under 24-year-olds 2. Improving Child Wellbeing – Reducing child poverty and improving child wellbeing, including addressing family violence 3. Supporting Māori and Pasifika Aspirations – Lifting Māori and Pacific incomes, skills and opportunities 4. Building a Productive Nation – Supporting a thriving nation in the digital age through innovation, social and economic opportunities 5. Transforming the Economy – Creating opportunities for productive businesses, regions, iwi and others to transition to a sustainable and low-emissions economy
  14. 14. 14 Building the Living Standards Framework
  15. 15. 15
  16. 16. • Political leadership • Performance outcomes • Ministry co-ordination – Social Investment Board (Welfare, Health, Housing, Education, Justice) – National Science Advisors – Social Investment Agency • Statistical information, analysis, policy reviews • Public reporting (Dashboard, Outcome reports) • Further measures in coming years 16 Key components
  17. 17. 17 Supporting Data Infrastructure
  18. 18. 3. Concluding Observations 18
  19. 19. • An increasing number of countries are using frameworks that set goals beyond macroeconomic variables • Drivers such as political leadership, international commitments, and institutional reform underpin the direction of travel • Budget management implications are significant and involve a multi-year response • Broad-based engagement and targeted capacity building initiatives across ministries are informing the scope and pace of the results achieved. 19 Concluding observations Source: OECD Hub on the Sustainable Development Goals provides comprehensive support and leadership on a multi-disciplinary and cross-sectoral basis.
  20. 20. Andrew Blazey Budgeting & Public Expenditures Public Governance Directorate, OECD
  21. 21. • Hege, E and Brimont L, Integrating SDGs into national budgetary processes, Institute for Sustainable Development and International Relations, 2018. • New Zealand Treasury, Living Standard’s Framework, 2019. • New Zealand Government, 2019 Budget at a Glance. • OECD, How’s Life 2017? Measuring Wellbeing. • OECD, 2018 Survey on Performance Budgeting in OECD Countries. • Statistics New Zealand, Integrated Data Infrastructure Overview 2018. • United Nations, Chapter 3: Budget Processes in Support of SDG Implementation, World Public Sector Report 2019. • United Nations Framework Convention on Climate Change (UNFCCC) Overview October 2018. 21 References