EUROsociAL supports improving the quality of public spending in Paraguay through the implementation of results-based budgeting

Handbook on application of evaluation results in the budget formulation process

Within the framework of the inclusive and sustainable tax systems action of the EUROsociAL Programme, financed by the European Union, there was an expert advisory mission to Paraguay in November 2015 to prepare a handbook on application of evaluation results for programmes and sub-programmes and/or projects in the budget formulation process.

Paraguay has been working since 2011 on gradual implementation of results-based budgeting with the aim of improving the way public entities deliver goods and services to citizens so as to afford them greater transparency in how the collected taxes are used.

Since approval of the Fiscal Responsibility Act in 2013, Paraguay has been obliged to follow a series of fiscal rules, create a multi-annual budget through establishment of a medium-term fiscal framework, and evaluate the efficiency and impact of public spending.

In this context, the Ministry of Finance, through the Directorate-General of Budget, assumed the commitment of implementing results-based budgeting with regard to the formulation of budgetary programmes, performance indicators and their targets, and programme evaluation. 

Definition of a handbook of recommendations regarding this entire process and for systematically incorporating evaluation results into the programming and formulation stages of budgetary programmes is a necessary condition for establishing a continuous improvement cycle in the budgetary process and coordinating it with planning, and therefore fits naturally into the framework of results-based budgeting.

The activity took place in Asunción over the week of 16th to 20th November 2015 with the advising of two experts from Spain's Institute for Tax Studies, and included the participation of representatives of the following Paraguayan institutions: Ministry of Finance; Ministry of Public Health and Social Welfare; Ministry of Public Works and Communications; Ministry of Agriculture and Livestock; Ministry of Labour, Employment and Social Security; Ministry of Education and Culture; Technical Secretariat of Economic Development and Social Planning; and the Directorate-General of Statistics, Surveys, and Censuses.

As part of the activity, on 19th November the Director-General of Public Budget held a press conference with the two IEF experts to explain the purpose of the technical assistance in the framework of the EUROsociAL II Programme and the importance of creation of the handbook for institutionally strengthening evaluation in Paraguay. He also remarked on the commitment of the leadership of Paraguay's Ministry of Finance to further improving the efficiency and effectiveness of public spending by implementing processes aimed at both public policy evaluation and results-based budgeting and fiscal responsibility. 

This activity is part of the Budget-Plan Link action of the EUROsociAL Programme, financed by the European Union and coordinated by FIIAPP, with the Spanish Institute for Tax Studies (IEF) acting as an operational partner.

Further information on the activity can be consulted at the following links: