Posted by Benoit Chevauchez
The role of performance information (PI) in budget management has grown hugely in advanced economies and is likely to increase in the future. PI is quantitative data on the actual or expected results of government policies and programs, associated with information on incurred costs.PI on activities, results, outputs or outcomes are non-financial data, while PI on inputs and costs are mostly financial data. Non-financial PI may take different forms such as indicators, benchmarks, ratings, rankings, league tables or scores.Such information allows the effectiveness and efficiency of public policies to be assessed, and may be used in a vast array of budget or non-budget environments.More than 80 percent of OECD countries are now using PI to support budget management. This rapid growth has gone hand in hand with the development of program and multiyear budgeting as well as with public policy evaluations and spending reviews. The present worldwide focus on fiscal consolidation, with shrinking fiscal space, demands a larger use of PI in order to strengthen the allocation process.