The Finance Department of Khyber Pakhtunkhwa (KP) spearheads a transformative shift towards performance-centric budgeting and monitoring. Since adopting Output-Based Budgeting in 2010, significant strides have been made, with the fiscal year 2021-22 witnessing enhanced efforts, in collaboration with the Sub National Governance Programme (SNG-II), to refine the Performance-Based Budget (PBB) structure. The recent enactment of the "Public Financial Management Act 2022" underscores the commitment to transparency and accountability, mandating the Finance Department to present the comprehensive "Performance-Based Budget Report (PBB)" to the provincial assembly.
Challenges and Transformative Endeavors:
Despite successful PBB integration, challenges persist, prompting continuous refinement. The Finance Department, supported by SNG-II, initiated crucial deliberation sessions with key departments.
Deliberation Sessions for Comprehensive Review:
From December 27th to December 29th, 2023, the Finance Department conducted meticulous deliberation sessions covering 80% of the total KP budget. These sessions aimed at evaluating the PBB report, refining Key Performance Indicators (KPIs), and strategically incorporating Responsibility Accounting.
Under the leadership of Mr. Abid Kakakhel, Special Secretary Finance, and the guidance of Mr. Asif Rasheed and Mr. Wasif Rehman, Additional Secretaries of the Finance Department, comprehensive reviews were conducted with representatives from diverse departments.
Deliberations Centered Around:
- Review and enhancement of output quality for precision and relevance.
- Refining Key Performance Indicators (KPIs) related to service delivery.
- Establishing clear linkages between outputs and their respective departments through Responsibility Accounting.
The proposed version of the reviewed PBB report has been shared with the Secretaries of respective departments for their comprehensive review and approval, ensuring senior management's active involvement and commitment to ongoing reforms.
These deliberation sessions mark a pivotal stride towards aligning KP's budgeting and monitoring system with performance-oriented principles. The Finance Department remains steadfast in driving excellence, transparency, and accountability in the public financial management system.
Mr. Abid Kakakhel, Special Secretary Finance, emphasized the collective commitment to excellence, transparency, and accountability in the public financial management system. These deliberation sessions mark a pivotal stride towards aligning KP's budgeting and monitoring system with performance-oriented principles. The Finance Department remains steadfast in driving positive change for the benefit of the people of Khyber Pakhtunkhwa.