Restructuring public sector and enhancing the efficiency of regional and local budgets’ expenditures
Since 2004, under the contract with the Nonprofit Fund for Enterprise Restructuring and Development of Financial Institutions the Institute for the Economy in Transition participates in the implementation of the project “Restructuring the budget sphere and enhancing the efficiency of regional and local budgets’ expenditures” in Vologda and Chelyabinsk regions, and in the Chuvashi Republic (then – participating regions). In each participating region the administration of the region assigned three representative municipal formations for conducting research.
The objective of the project is to render consulting services to the participating regions and representative municipalities, being part of them, in enhancing the efficiency of regional and local budgets’ expenditures, developing recommendations on cost management, improving activities of the government institutions and restructuring public sector (the sector of unitary enterprises), developing legal base to evaluate the efficiency of expenditures, cost management and restructuring the budget sphere (including the sector of unitary enterprises), developing practical recommendations and public sector restructuring mechanisms (including the sector of unitary enterprises), developing the Best Practice Code in the sphere of cost management and restructuring the social sector (including the sector of unitary enterprises) at the level of Federation’s subjects and municipal formations, training officers of the sector of public and municipal government and the unitary enterprises’ personnel.
In the participating regions and representative municipal formations activities are performed on:
1) examination of the existing practice and legal base, estimating the efficiency of budget expenditures in different industries, managing budget expenditures and restructuring government and municipal sector (including the sector of unitary enterprises);
2) analysis of the rules and practices of management in the public sector, necessary for enhancing the quality of management, based on generalization of diagnostic materials of the financial state and quality of management of regional finances, reviews of sectoral expenditures of the budgets of Russian Federation’s subjects and municipal formations, and other materials prepared under the project of technical assistance to the reform at regional level concerning estimating the efficiency and control of budget expenditures;
3) assistance to public authorities and local government of the Russian Federation’s subjects in practical implementation of the programs (plans, concepts etc.) of reforming the cost management, their adaptation and correction;
4) development and introduction at the regional and municipal levels of the mechanisms (including the development and support in the course of reviewing legal acts and methodological recommendations, detailed requirements to program, human and material resources, as well as proposals for the support of these mechanisms at the federal level):
5) development of the Best Practice Code in the field of expenditure management of the budgets of the Russian Federation’s subjects and municipal formations;
6) dissemination of project results.
Basic results of the Project will be:
1. A restructuring concept for public and municipal sectors and enhancing the efficiency of budget expenditures at the regional and local levels (which also provides for the sectoral situation) and its introduction in the participating regions and representative municipalities;
2. development of proposals for changing the existing legislation in the form of draft amendments to concrete legal acts of federal and regional level (for each participating region), introducing a new legal base in the form of drafts legal acts of federal and regional level (for each participating region).
Detailed project description
The objective of the project is to render consulting services to the participating regions and representative municipalities, being part of them, in enhancing the efficiency of regional and local budgets’ expenditures, developing recommendations on cost management, improving activities of the government institutions and restructuring public sector (the sector of unitary enterprises), developing legal base to evaluate the efficiency of expenditures, cost management and restructuring the budget sphere (including the sector of unitary enterprises), developing practical recommendations and public sector restructuring mechanisms (including the sector of unitary enterprises), developing the Best Practice Code in the sphere of cost management and restructuring the social sector (including the sector of unitary enterprises) at the level of Federation’s subjects and municipal formations, training officers of the sector of public and municipal government and the unitary enterprises’ personnel.
In the participating regions and representative municipal formations activities are performed on:
1) examination of the existing practice and legal base, estimating the efficiency of budget expenditures in different industries, managing budget expenditures and restructuring government and municipal sector (including the sector of unitary enterprises);
2) analysis of the rules and practices of management in the public sector, necessary for enhancing the quality of management, based on generalization of diagnostic materials of the financial state and quality of management of regional finances, reviews of sectoral expenditures of the budgets of Russian Federation’s subjects and municipal formations, and other materials prepared under the project of technical assistance to the reform at regional level concerning estimating the efficiency and control of budget expenditures;
3) assistance to public authorities and local government of the Russian Federation’s subjects in practical implementation of the programs (plans, concepts etc.) of reforming the cost management, their adaptation and correction;
4) development and introduction at the regional and municipal levels of the mechanisms (including the development and support in the course of reviewing legal acts and methodological recommendations, detailed requirements to program, human and material resources, as well as proposals for the support of these mechanisms at the federal level):
- stimulating the bodies of power to independent conducting of reforming and restructuring in industries;
- stimulating the structural subdivisions of regional and local government to pursue reforms in the subordinate sectors and enhancing the efficiency of budget expenditures;
- stimulating organizations that receive funding from subnational budgets to their more effective use and enhancing the quality of budgetary services (including the specification of questions related to interaction of organizations with managers of the funds of regional and local budgets, quality indices and “performance budgeting”, organizations’ legal status, degree of their self-sufficiency, etc);
- implementing an optimal pattern of interbudgetary relations (region-municipality);
5) development of the Best Practice Code in the field of expenditure management of the budgets of the Russian Federation’s subjects and municipal formations;
6) dissemination of project results.
Basic results of the Project will be:
1. A restructuring concept for public and municipal sectors and enhancing the efficiency of budget expenditures at the regional and local levels (which also provides for the sectoral situation) and its introduction in the participating regions and representative municipalities;
2. development of proposals for changing the existing legislation in the form of draft amendments to concrete legal acts of federal and regional level (for each participating region), introducing a new legal base in the form of drafts legal acts of federal and regional level (for each participating region).
Detailed project description