Government budgeting guide highlights strategic financial management in Oman
Published: 02:07 PM,Jul 10,2024 | EDITED : 03:07 PM,Jul 18,2024
This budgeting method serves as a vital tool for organising budgetary information and aiding decision-makers in selecting the best service delivery options.
MUSCAT: The Ministry of Finance (MoF) has recently unveiled its Programme and Performance Budgeting Guide, emphasising a strategic approach to financial management. This budgeting method serves as a vital tool for organising budgetary information and aiding decision-makers in selecting the best service delivery options.
Sultan bin Salim al Habsi, Minister of Finance, stated, 'Programme and Performance Budgeting represents a new foundation in public financial administration, aimed at enhancing the efficiency of public spending and achieving desired outcomes through the allocation of budgets to government units.'
This guide aims to align governmental expenditures with strategic priorities, ensuring optimal resource allocation and fostering sustainable development.
It details various methodologies for preparing detailed justifications within programme and performance budgets. Most budget models require descriptions of services, long-term programme objectives, and short-term goal specifications (typically expected achievements in the next year). Some guidelines also necessitate referencing government mandates or laws upon which the programmes are based, describing significant concerns and issues, and providing concise descriptions of implementation plans.
The integration of economic classifications in Programme and Performance Budgeting is crucial. This classification, based on economic categories and expenditure items, forms the basis for budget segmentation after allocation, focusing on government units designated in the expenditure budget. This structural foundation of programs and activities guides allocation in Programme and Performance Budgeting.
Furthermore, Programme and Performance Budgeting embodies an integrated budgeting framework, combining both development and current budget structures within a unified approach. This integration ensures that both types of expenditures (current and developmental) are planned based on programmatic activities, rather than separately. Thus, the budget aligns expenditures with the specific goals of each programme, prioritising their achievement.
In subsequent sections, the guide elaborates on methodologies for implementing programme and performance budgeting, highlighting its potential impact on both governmental and private educational institutions in Oman.
Sultan bin Salim al Habsi, Minister of Finance, stated, 'Programme and Performance Budgeting represents a new foundation in public financial administration, aimed at enhancing the efficiency of public spending and achieving desired outcomes through the allocation of budgets to government units.'
This guide aims to align governmental expenditures with strategic priorities, ensuring optimal resource allocation and fostering sustainable development.
It details various methodologies for preparing detailed justifications within programme and performance budgets. Most budget models require descriptions of services, long-term programme objectives, and short-term goal specifications (typically expected achievements in the next year). Some guidelines also necessitate referencing government mandates or laws upon which the programmes are based, describing significant concerns and issues, and providing concise descriptions of implementation plans.
The integration of economic classifications in Programme and Performance Budgeting is crucial. This classification, based on economic categories and expenditure items, forms the basis for budget segmentation after allocation, focusing on government units designated in the expenditure budget. This structural foundation of programs and activities guides allocation in Programme and Performance Budgeting.
Furthermore, Programme and Performance Budgeting embodies an integrated budgeting framework, combining both development and current budget structures within a unified approach. This integration ensures that both types of expenditures (current and developmental) are planned based on programmatic activities, rather than separately. Thus, the budget aligns expenditures with the specific goals of each programme, prioritising their achievement.
In subsequent sections, the guide elaborates on methodologies for implementing programme and performance budgeting, highlighting its potential impact on both governmental and private educational institutions in Oman.