Posted by Jordi Baños-Rovira
In recent years, Barcelona City Council has introduced a range of budget reforms to improve the efficiency of resource allocation and operational management. In particular, a performance-based budgeting system (called the “Executive Budget’) has been developed, linked to the goals set in the Government’s Development Plan.
A key element of this new budget preparation process is the development of baseline projections of expenditure, which estimate the spending required to maintain current policies (or levels of service) for the next year, and to comply with already approved multi-year commitments. Budget requests by departments thus comprise two elements: the spending baselines, and additional resources required to finance new projects and services, and other policy changes.