“The Role of Programs and Performance Budget in Implementing Palestinian Strategic Plans رسالة ماجستير

Abstract

The Role of Programs and Performance Budget in Implementing Palestinian Strategic Plans Palestinian Ministry of Finance prepares state budget according to organic public budget law, which was enacted in 1998. Since 2010, Ministry of Finance was shifted from items budget to programs and performance budget. According to programs budget, State public budget is prepared in harmony with National Development Plans and Ministries strategic plans. This study investigates the role of programs and performance budget in implementing Palestinian strategic plans. For this purpose, data collected from primary resources such as interviews with senior management in Public budget department and line ministries while secondary resources were annual public budgets; Ministry of Finance reports; Palestinian national development plans; Ministries strategic plans. The Study reviewed public budgets from 2014-2017 and their compatibility with strategic plans and conducting interviews with senior management from public budget department and line ministries who are involved in preparing budget. The study sample was Ministry of Health, Ministry of Education, Ministry of Labor and Ministry of National Economy. The most important results of this study are: (1) Public budget analysis and interviews show that programs and performance budget is not an effective tool for implementing strategic plans, Ministry of Finance and line Ministries prepare programs budget while implement items budget, (2) there is no match between strategic objectives in national development plan and Ministries strategies objectives, (3) there is no correspondence in classifying Ministries in related sectors between national development plan and public budget, (4) estimated budgets in national development plans do not match with estimated budgets in Ministries strategies and public budgets, (5) programs and objectives outlined in programs budget do not reflect all strategic VI objectives in ministries strategies and national development plan, (6) implementing part of strategy through donors directly, without reflecting this in ministries public budget reduce the role of programs budget as an important tool for implementing strategic plans, (7) organizational structures of ministries are not compatible with program budget structure, (9) old and unclear financial and administrative laws are the biggest obstacle faced in implementing programs budget. The most important recommendations of this study are: (1) the difficult situation for state of Palestine leads to prepare emergency budgets during the last years, depending on external revenue sources from donors, Ministry of finance and line ministries are not ready yet to implement this kinds of budgets, so comprehensive reviews must be done to evaluate ministries efficiency in implementing this budgets, at the end if conditions not suitable to implement programs and performance budget, state of Palestine and Ministry of Finance should implement more easer budgets such as items budget, (2) importance of match in strategic objectives, activities, key performance indicators, financial resources and duration of implementation between national development plans, ministries strategic plans, budget plan, and programs budget to increase efficiency of programs budget in implementing strategic plans, (3) importance of having achievement reports while implementing national development plans, ministries strategies, and program budget, until now Ministry of Finance is preparing financial and progress reports in accordance with items concept, (3) the necessity of transferring all funds from donors to Ministry of Finance. Donors, however, were implementing part of strategic plans directly with ministries without reflecting this impact on programs budget and that limits ability of programs budget in implementing strategic plans, (4) reformulate comprehensive strategies and develop realistic strategies according to available financial resources.