Question 47

Does the Executive’s Budget Proposal or any supporting budget documentation present information on how the proposed budget (both new proposals and existing policies) is linked to government’s policy goals for the budget year?
 * a. Yes, estimates that show how the proposed budget is linked to all the government’s policy goals for the budget year are presented, along with a narrative discussion.
 * b. Yes, estimates that show how the proposed budget is linked to all the government’s policy goals for the budget year are presented, but a narrative discussion is not included.
 * c. Yes, information that shows how the proposed budget is linked to some but not all of the government’s policy goals for the budget year is presented.
 * d. No, information on the link between the budget and the government’s stated policy goals for the budget year is not presented.
 * e. Not applicable/other (please comment).

Guidelines
Questions 47 and 48 ask about information that shows how the budget (both new proposals and existing policies) is linked to the government’s policy goals. The budget is the executive’s main policy document, the culmination of the executive’s planning and budgeting processes. Therefore, it should include a clear description of the link between policy goals and the budget — that is, an explicit explanation of how the government’s policy goals are reflected in its budget choices. For an example of a discussion of a government’s policy goals in the budget, see pages 13-18 of New Zealand’s 2011 Statement of Intent, one of the many documents supporting its budget. In some countries the government prepares strategic/development plans. These plans include all the policies the government is planning to implement for the budget year and very often cover a multi-year perspective. In some cases, these plans do not match the budget documentation, and it is possible that they are completely disconnected from the Executive’s Budget Proposal. So the question is examining whether government policy plans are “translated” into revenue and expenditure figures in the actual budget documents.

Question 47 asks about the information covering the budget year, and Question 48 asks about the period at least two years beyond the budget year. To answer “a,” the Executive’s Budget Proposal or supporting documentation must present both estimates of how the budget is linked to government’s policy goals for the budget year (for Question 47) or for a multi-year period beyond the budget year (for Question 48) and a narrative discussion of how these policy goals are reflected in the budget. To answer “b” for either question, the Executive’s Budget Proposal or supporting documentation must present estimates that show how the budget is linked to government’s policy goals, but no narrative discussion is included. A “c” response applies if the presentation includes only a narrative discussion, or if it includes estimates that show how the budget is linked to some, but not all, of the government’s policy goals (regardless of whether it also includes a narrative discussion). Answer “d” applies if no information is presented on how the budget is linked to government’s policy goals.

1) What level of detail is needed?
The bar for a “c” response to this question is very low; there just needs to be some reference to a policy and what the government is doing because of that policy. A “c” response is appropriate if there is a discussion of policy intentions, but that discussion is not comprehensive (partners would need to explain why it is NOT comprehensive).

For a country with a program budget, an “a” answer is not automatic; there would need to be explanation of each policy to merit an “a” response.

For an “a” or “b” response, policy goals/objectives should be linked to estimates. This does not have to be at the line item-level, sector- or program-level is fine.

External References

 * New Zealand’s 2011 Statement of Intent