1. bookVolume 15 (2022): Issue 1 (June 2022)
Journal Details
License
Format
Journal
eISSN
1338-4309
First Published
03 Aug 2009
Publication timeframe
2 times per year
Languages
English
access type Open Access

Usability of Municipal Performance-based Budgets within Strategic Planning in Slovakia: Perception of Elected Local Representatives

Published Online: 14 Jun 2022
Volume & Issue: Volume 15 (2022) - Issue 1 (June 2022)
Page range: 17 - 37
Journal Details
License
Format
Journal
eISSN
1338-4309
First Published
03 Aug 2009
Publication timeframe
2 times per year
Languages
English
Abstract

The article aims to present the concept of performance-based budgeting at the local government level with a focus on its importance for strategic management at the local government level. The original intention of introducing programme budgeting, which is clearly linked to performance management and results, was to improve strategic-oriented public management, in particular by focusing on objectives and using performance information as well as performance measures. Much more attention has recently been paid to the importance and use of performance information and performance measures. Based on case studies, the authors analyse the significance of the performance information provided in the newly established performance budgets of municipalities, while the findings were supplemented by a perception of the current situation in the form of semi-structured interviews with elected representatives of selected local governments. The results of the article seek to highlight the advantages of implementing this concept, the appropriate ways and obstacles often encountered, and important recommendations for improving its use, summarised on the basis of more than a decade of experience since the introduction of this budgetary innovation on the basis of legislation as mandatory budgetary policy instruments in Slovakia for all self-governing regions and local governments in municipalities with more than 2,000 inhabitants. This leads to the conclusion of whether PBB, among other approaches, is an option or a real necessity for today’s economic challenges, but at the same time to the actual need for changes in the methodology of this strategic management tool at the local government level.

Keywords

Andika Thio Rahman, R., Irianto, G., & Rosidi, R. (2019). Evaluation of E-Budgeting implementation in provincial government of DKI Jakarta using CIPP model approach. Journal of Accounting and Investment, 20(1), 94–114. https://doi.org/10.18196/jai.200111010.18196/jai.2001110 Search in Google Scholar

Baláži, P. (2010). Programové rozpočtovanie ako jedno z prínosov reformy verejných financií. In: Veřejná správa 2010. Sborník příspěvků z vědecké konference s mezinárodní úcastí: Seč u Chrudimi, 20. – 21. 9. 2010, (pp. 6 – 17). Univerzita Pardubice, Fakulta ekonomicko-správní. Search in Google Scholar

Bleyen, P., Klimovský, D., Bouckaert, G., & Reichard, C. (2016). Linking budgeting to results? Evidence about performance budgets in European municipalities based on a comparative analytical model. Public Management Review, 19(7), 932–953. https://doi.org/10.1080/14719037.2016.124383710.1080/14719037.2016.1243837 Search in Google Scholar

Bryson, J. M., & Bert, G. (2020). Strategic management in public administration. In B. G. Peters & I. Thynne (Eds.), The Oxford Encyclopedia of Public Administration (pp. 1–26). Oxford University Press, https://doi.org/10.1093/acrefore/-9780190228637.013.139 Search in Google Scholar

COFOG - klasifikácia výdavkov verejnej správy \ Ministerstvo školstva, vedy, výskumu a śportu Slovenskej republiky. (2021, July 14). Ministerstvo školstva, vedy, výskumu a športu Slovenskej republiky. https://www.minedu.sk/cofog-klasifikacia-vydavkov-verejnej-spravy/ Search in Google Scholar

Crain, W. M., & O’Roark, J. B. (2004). The impact of performance-based budgeting on state fiscal performance. Economics of Governance, 5(2), 167–186. https://doi.org/10.1007/sl0101-003-0062-6 Search in Google Scholar

Czuma-Imiołczyk, L. (2019). Analysis of the implementation of the assumptions of the budget economy and monetary policy in Poland. World Scientific News, 127, 260–271. Search in Google Scholar

de Vries, M. S., Nemec, J., & Špaček, D. (2019). Performance-Based budgeting in the public sector (governance and public management) (1st ed. 2019 ed.). Palgrave Macmillan, https://doi.org/10.1007/978-3-030-02077-410.1007/978-3-030-02077-4 Search in Google Scholar

Dušek, J. (2020). Rozvoj Jihočeského kraje v kontextu veřejných financí a spolupráce obcí. In V. Klímová & V. Žítek (Eds.), XXIII. mezinárodní kolokvium o regionálních vědách. Sborník příspěvku (pp. 1–5). Masarykova univerzita. https://doi.org/10.5817/CZ.MUNI.P210-9610-2020-2410.5817/CZ.MUNI.P210-9610-2020-24 Search in Google Scholar

Dušek, J. (2021). Finanční stabilita rozpočtů obcí Jihočeského kraje v kontextu meziobecní spolupráce. In V. Klímová & V. Žítek (Eds.), 24th International Colloquium on Regional Sciences. Conference Proceedings, (pp. 190–198). Masarykova univerzita, 2021.10.5817/CZ.MUNI.P210-9896-2021-47 Search in Google Scholar

Emerling, I., & Wojcik-Jurkiewicz, M. (2018). The risk associated with the replacement of traditional budget with performance budgeting in the public finance sector management. Ekonomicko-Manazerske Spektrum, 12(1), 55–63. https://doi.org-/10.26552/ems.2018.1.55-6310.26552/ems.2018.1.55-63 Search in Google Scholar

Fang, C., Guan, X., Lu, S., Zhou, M., & Deng, Y. (2013). Input-Output efficiency of urban agglomerations in China: An application of data envelopment analysis (DEA). Urban Studies, 50(13), 2766–2790. https://doi.org/10.1177/-0042098013477707 Search in Google Scholar

Ferlie, E., & Parrado, S. (2018). Strategic management in public services organizations: developing a European perspective. In E. Ongaro & S. Van Thiel (Eds.), The Palgrave handbook of public administration and management in Europe (pp. 101-119). Palgrave Macmillan, London, https://doi.org/10.1057/978-l-137-55269-3_5 Search in Google Scholar

Garaj, M., & Bardovič, J. (2020). Participatory budgeting – the case of the Slovak Republic. Annates Universitatis Mariae Curie-Skłodowska, Sectio K – Politologia, 27(2), 59. https://doi.org/10.17951/k.2020.27.2.59-7310.17951/k.2020.27.2.59-73 Search in Google Scholar

Grossi, G., Reichard, C., & Ruggiero, P. (2016). Appropriateness and use of performance information in the budgeting process: Some experiences from German and Italian municipalities. Public Performance & Management Review, 39(3), 581–606. https://doi.org/10.1080/15309576.2015.113777010.1080/15309576.2015.1137770 Search in Google Scholar

Hagara, E., Kišš, Š., & Ódor, Ĺ. (2019). Rozpočet 2.0: Ako posunút’ Slovensko do prvej ligy vo verejných financiách. Národná Banka Slovenska. https://www.nbs.sk/_img/Documents/PUBLIK/OP_2_2020_Hagara_Kiss_Odor_Rozpocet_2_0.pdf Search in Google Scholar

Ho, A. T., Jong, D. M., & Zhao, Z. (2019). Performance budgeting reform: Theories and international practices (1st ed.). Routledge.10.4324/9781351055307 Search in Google Scholar

Hronec, Š. (2019). Performance-Based program budgeting in Slovakia: A lost opportunity (?). In: M.S. de Vries, J. Nemec, D. Špaček (Eds.) Performance-Based budgeting in the public sector (governance and public management). Palgrave Macmillan, Cham, https://doi.org/10.1007/978-3-030-02077-4_1010.1007/978-3-030-02077-4_10 Search in Google Scholar

Janjić, D., Maksimović, S., & Veselinović, S. (2017). Povezanost strategijskog planiranja i programskog budžetiranja u oblasti kulture. FBIM Transactions, 5(2), 43–56. https://doi.org/10.12709/fbim.05.05.02.0510.12709/fbim.05.05.02.05 Search in Google Scholar

Jethon, A., & Reichard, C. (2021). Usability and actual use of performance information in German municipal budgets: the perspective of local politicians. Public Money & Management, 1–8. https://doi.org/10.1080/09540962.2021.196619310.1080/09540962.2021.1966193 Search in Google Scholar

Jüptner, P., & Klimovský, D. (2021). Vertical and horizontal intergovernmental relations during the first wave of the COVID-19 crisis: Experience from the extremely fragmented CEE countries. Local Government Studies, 1–19. https://doi.org/10.1080/03003930.2021.194485810.1080/03003930.2021.1944858 Search in Google Scholar

Kelly, J. M., & Rivenbark, W. C. (2015). Performance budgeting for state and local government [E-book].10.4324/9781315701813 Search in Google Scholar

Klimovský, D., & Nemec, J. (2021). Local Self-Government in Slovakia. In: B. Brezovnik, I. Hoffman, & J. Kostrubiec (Eds.), Local Self-Government in Europe. Maribor: Institute for Local Self-Government Maribor (pp. 355 – 382). https://doi.org/10.4335/978-961-7124-00-2.11 Search in Google Scholar

Lentner, C., Molnar, P., & Nagy, V. (2020). Accrual accounting and public finance reforms in Hungary: The study of application in the public sector. Economic Annals-XXI, 183(5–6), 89–105. https://doi.org/10.21003/ea.vl83-09 Search in Google Scholar

Lorenz, C. (2011). The impact of performance budgeting on public spending in Germany’s Laender (2012th ed.). Gabler Verlag. Search in Google Scholar

Lu, E. Y., & Willoughby, K. (2019). Public performance budgeting: Principles and practice (1st ed.). Routledge. Search in Google Scholar

Miller, G., Hildreth, B. W., & Rabin, J. (2001). Performance based budgeting (Aspa Classics). Westview Press. Search in Google Scholar

Ministry of Finance of the SR. 2007. Practical and specific manual for creating program structures at the level of local and regional self-government. https://www.mfsr.sk/files/archiv/priloha-stranky/4598/4/manual.pdf Search in Google Scholar

Nemec, J., Klimovský, D., Šagát, V., Plaček, M., & Sedmihradská, L. (2021). The impact of fiscal rules on the financial management of municipalities: A comparative analysis of the Czech Republic and Slovakia. In: R. Geissler, G. Hammerschmid, & C. Raffer (Eds), Local Public Finance (pp. 109-130). Cham: Springer. https://doi.org/10.1007/978-3-030-67466-3_710.1007/978-3-030-67466-3_7 Search in Google Scholar

O’Loughlin, C. T., & Wilson, P. W. (2021). Benchmarking the performance of US municipalities. Empirical Economics, 60(6), 2665–2700. https://doi.org/-10.1007/s00181-021-02026-210.1007/s00181-021-02026-2 Search in Google Scholar

OECD (2019). OECD Good Practices for Performance Budgeting, OECD Publishing, Paris, https://doi.org/10.1787/c90b0305-en.10.1787/c90b0305-en Search in Google Scholar

OECD (2020). Managing and prioritising public finances and budget in support of strategic development in the Slovak Republic: A targeted budget review. (2020). OECD Journal on Budgeting, 20(2). https://doi.org/10.1787/02e650cd-en10.1787/02e650cd-en Search in Google Scholar

Pratolo, S., Sofyani, H., & Anwar, M. (2020). Performance-based budgeting implementation in higher education institutions: Determinants and impact on quality. Cogent Business & Management, 7(1), 1786315. https://doi.org/10.1080/23311975.2020.178631510.1080/23311975.2020.1786315 Search in Google Scholar

Redburn, S. F., Shea, R. J., & Buss, T. F. (2008). Performance management and budgeting: How governments can learn from experience (1st ed.). Routledge. Search in Google Scholar

Robinson, M. (Ed.). (2007). Performance budgeting: linking funding and results. Palgrave Macmillan. Search in Google Scholar

Sagat, V., Krapek, M., & Nemec, J. (2021). Efficiency of control in regional self-government of the Slovak Republic. ADMINISTRATE SI MANAGEMENT PUBLIC, 37, 6–26. https://doi.org/10.24818/amp/2021.37-0110.24818/amp/2021.37-01 Search in Google Scholar

SLOV-LEX (https://www.slov-lex.sk/domov) právny a informačný portál. Search in Google Scholar

Šramel, B., & Mihálik, J. (2019). Constitutional and Legal Foundations for Local Self-Government Law-making: Does the Slovak Republic Need More Precise Legal Regulation? Lex localis - Journal of Local Self-Government.10.4335/17.3.393-415(2019) Search in Google Scholar

Žofčinová, V. (2018). Osobitné kategórie zamestnancov. Košice: Univerzita PJ Šafárika v Košiciach. Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo