Paraguay improves the effectiveness of public spending

Within the framework of the EUROsociAL II Program, Paraguay received specialized advice between June 29 and July 3 for the preparation of a multi-year results-based budget to improve the effectiveness of public spending.

This budget model links the allocation and use of resources with the management results of institutions, systematically using performance information and incorporating planning, budgeting, and evaluation functions as a way to improve public management. Paraguay has been implementing it since 2011.

The consultation, which took place in the Paraguayan capital, Asunción, included the participation of the Deputy Director General of Organization, Planning, and Resource Management of the General Directorate of Budgets, and the Director of the Office of the Secretariat of State for Finance and Budgets, both from the Ministry of Finance and Public Administrations of Spain, as well as more than twenty officials and technicians from the Ministry of Finance of Paraguay.

Theoretical explanations, practical cases, and workshops were the main tools of the consultancy, where the Spanish experience in budget preparation and its approach to multi-year budget planning were shared.

Results

As a result of this activity, methodological recommendations were developed for the effective implementation of the multi-year budget in accordance with the criteria established in Paraguay’s Fiscal Responsibility Law and its implementing regulations. This will allow those responsible for budget preparation to define multi-year budgets more efficiently, in accordance with the requirements to which they are legally bound.

This activity is part of the Budget Plan linkage action of the EUROsociAL II Program, funded by the European Union, coordinated by the FIAP, and in which the Spanish Institute of Fiscal Studies acts as an operating partner.