Professional Documents
Culture Documents
On Governance Reforms
Ministry of Finance
Government of Mongolia
Attached Table-1 presents in a tabular form the budget planning, preparation, approval, execution
and evaluation systems and procedures by the Government of Thailand as compared to those by
the Government of Mongolia. It may be observed from the Table that the Government of
Mongolia adopts almost similar systems and procedures for budget preparation, approval by the
Parliament, and execution by the Agencies. However, the systems in Thailand appear to be much
more developed than those in Mongolia in the following respects:
(a) Thailand has a Government Administrative Plan for 4 years (Item 10.1 in the Table-1)
which guides the preparation of the Strategic Plans for Agencies. Mongolian Parliament
is yet to approve a National Development Plan.
(b) Thailand has a very elaborate and detailed Program Assessment Rating Tool (PART)
(Items 8.4, 13, 38). Mongolia is yet to develop such a model.
(c) Thailand has a very elaborate and detailed EVMIS (Evaluation Management
Information System) (Item 8.4, 37). Mongolia is yet to develop such a model.
(d) Thailand has well established system and procedures for a Mid-year budget review
(Item 8.2, 17, 36). Mongolia can also establish such a system.
(e) Thailand also produces an Annual Thailand Performance Report (Item 10.5).
Mongolia can also produce such a consolidated report.
(f) Thailand has well developed E-Budgeting System (Item 14): an automated budget
information link between line agencies and the Bureau of the Budget (BOB). It also
provides support for the strategic management and performance evaluation of the
Agencies, and the Annual Evaluation and Monitoring Information System.
(g) Thailand has well developed system for estimation of Output Cost (Items 21, 24) and
also Budget Allocation Guidelines (Item 30).
Government of Mongolia can learn from the government of Thailand on the following aspects:
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TABLE-1
Comparative analysis of budget systems and planning in Mongolia and Thailand
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Items Thailand Mongolia
1
Mongolia has a Contingent Fund which is technically different from a Contingency Fund. Mongolian
Contingent Fund is bacsically a Contingent Liabilility Fund which is used for financing government
expenditure for unforeseen events. But, the Thailand Contingency Fund is used to finance expenditure
overruns during the year subject to certain rules and procedures, and every budgetary entity is allowed to
have some contingency fund as a part of its annual budget.
3
Items Thailand Mongolia
5. Thailand Performance No
Report
11. Correlations between Identify inputs/ resources Yes for selected ministries
planning and outcomes
Determine processes/ Yes for selected ministries
activities
Specify outputs or objectives Yes for selected ministries
Define outcomes or goals Yes for selected ministries
4
Items Thailand Mongolia
5
Items Thailand Mongolia
6
Items Thailand Mongolia
2
Rather, Mongolia Budget for 2008 specifies the following targets:
Macro-economic and budgetary parametersMTBF2008 budget 1. Minimum real GDP growth rate,
percent8.710.12. Ceiling on inflation, percent5.05.53. Ceiling on total budget revenue40.244.04. Ceiling on
total budget expenditure43.247.05. Floor on current balance 7.97.76. Ceiling on budget deficit-3.0-3.07.
Floor on capital expenditure8.08.8
7
Items Thailand Mongolia
3
Strategic Framework
Government⇒National strategy⇒Strategy targets←Indicators↑⇓⇑ ⇓↓Ministry⇒Ministry strategy⇒
Service delivery targets←Indicators↑⇓⇑ ⇓↓Department⇒Service plan⇒Outputs←Indicators ↑⇓⇑ ⇓↓
Work plan/
Project⇒Activity⇒ProcessesProgress evaluation
8
Items Thailand Mongolia
32. Budget structure Expenditure- Yes
- Current expenditure
- Capital expenditure
- Principal repayment
4
The Red Book provides details of Expenditure classified by departments, and contains Section-A on
Linkage between national strategic goals and departmental structure; and Section-B on the Linkage
between strategic delivery target and department target output.
5
The Yellow Book provides details of Expenditure classified by Programs and contains Section-A on
Overview of the Annual Budget and Allocation Strategy; Section-B on the Linkage among strategy,
program, delivery target and output; and Section-C on Expenditure classified by strategy and integrated
budget plan.
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Items Thailand Mongolia
6
Examples of mid-year adjustments in the Budget;
Examples of adjustmentDept HeadBOBCabinetLegislatureA. Within a Department1. Between items within
the same expenditure head√2. Between items/ expenditure objects across programs√√3. Between recurrent
and large capital expenditure√√B. Across Departments√
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Monitoring and Evaluation System
Ministry
BOB Departmental Performance
CGD Financial Performance
Auditor General Ex-post Audit⇓ ⇑Agency Performance Monitoring Evaluation and Reporting⇒⇓⇓⇓⇓
Parliament⇒CABINET
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Annex-1 - State and Local Budget Planning Schedule in Mongolia
Deadline
Actions
1. Medium term budgeting- MOF delivers general financial 1 March
categories limits to general budget managers.
2. General budget governors prepare and submit to the MOF
20 March
the Operational plan for the next 3 years
3. Ministry of Finance discusses with each general manager
10 April
their Operational plan and budget
4. MOF finalizes and submits to the Cabinet the draft MTBF
20 April
and relevant calculations
5. The draft MTBF and MT economic and financial policy
30 April
discussed and approved by the Cabinet session
6. The draft Medium term budget framework and draft
1 May
Parliament resolution are submitted to the Parliament
7. Estimates reflected in the Parliament approved Budget
10 June
framework delivered to the general budget managers
8. Budget entity managers deliver proposals for the next year
1 July
budget to the general budget managers
9. General budget managers submit to the MOF proposal for
15 August
the next year’s draft budget and operational plan
10. MOF reviews the draft budget, and reach an agreement
1 September
with each general budget manager
11. Draft budget, medium term economic and financial policy
15 September
are finalized and submitted to the Cabinet
12. Next year’s draft budget, medium term economic and
30 September
financial policy are discussed by the Cabinet
13. Socio-economic development policy, draft state and
1 October
Agency budgets submitted to the Parliament
14. Budget approved by Parliament
1 December
15. Parliament approved budget is delivered to budget general
10 December
managers (GMs) in detailed estimates
16. GMs enter into output delivery and result- based contract
25 December
with each aimag and capital city GM
17. Citizen’s Representative Khural approved aimag and capital
15 January
city budgets submitted to MOF
18. Budget GMs approve monthly, quarterly budget financing 5 January
schedule and deliver to the MOF
19. Approved by the order of the MOF the monthly, quarterly
budget financing schedule for the current budget year is 20 January
delivered to the GMs.
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