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Sri Lanka to emphasize KPIs in budget preparation: Finance Ministry

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Aug 14, 2017 (LBO) - Sri Lanka's finance ministry will focus on inclusion of key performance indicators (KPIs) for all budget proposals from ministries when preparing the budget for 2018. All proposals by line ministries, provincial ministries and the heads of departments should include details of output of such projects accompanied with KPIs, as the Budget 2018 will be prepared on a "performance basis," Treasury Secretary R.
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H.S Samaratunga has said. "Priority would be given for ongoing and foreign funded projects where KPI-based measurable outcomes are identified for each project," a finance ministry statement said.
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For 2018, macroeconomic assumptions include, real GDP growth of 6 percent, inflation to stabilize at 5 percent level, and overall budget deficit to be contained at 4.
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3 percent of GDP, the finance ministry said.


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The "performance based" macro–fiscal framework for 2018-2020 approved by the Cabinet of Ministers emphasizes the rationalization of recurrent expenditure and prioritization of capital expenditure, while enhancing the government revenue mobilization, public investment and reducing the budget deficit and outstanding government debt. Capital expenditure projects that have been earmarked for implementation by the National Planning Dept for each ministry would also be given priority provided the plans of such projects carry KPIs, Finance and Media Minister Mangala Samaraweera said.
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Samaraweera said such improvements in the performance of public finance management should augur well for realization of medium–term economic growth of around 6 to 7 percent.

"Formulation of Performance based budget (PBB) from 2018 has been built on the experience of implementing the zero-based budgeting approach adopted in the preceding years.
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" "Therefore, identifying the scope of the projects, defining the intended measurable outcomes and assessing the socio-economic impact on the projects, comprise the major elements of the performance based budget preparations approach." Feasibility assessments of projects forwarded by various ministries are being conducted at the finance ministry with the participation of the secretaries of the respective ministries and the treasury secretary. The treasury secretary has requested all line ministry secretaries, provincial secretaries, heads of departments and heads of state-owned enterprises to submit their proposal without delay. Minister Samaraweera is expected to present the 2018 Budget in Parliament in November.
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