IMF国际货币组织全球-Chile_Technical-Assistance-Report_75页_1mb

Summary of the Technical Assistance Report: Introducing and Institutionalizing Spending Reviews in Chile

Core Content

This technical assistance report outlines the process and recommendations for introducing and institutionalizing spending reviews (SRs) in Chile, as requested by the Ministry of Finance. The report is prepared by the IMF Fiscal Affairs Department (FAD) and is based on information available as of May 2019. It provides a framework for conducting SRs, based on international experiences, and includes specific recommendations for the Chilean government to meet its fiscal consolidation goals and improve public financial management (PFM) efficiency.

Main Objectives of Spending Reviews

Spending reviews are institutionalized processes aimed at:

• Identifying options to reduce or redirect public expenditures
• Improving value for money
• Supporting fiscal consolidation
• Creating fiscal space for new priorities
• Reprioritizing expenditures from less to more important areas

These reviews are flexible and can be used to address a variety of fiscal and efficiency goals.

International Experience

Overview

Over two-thirds of OECD countries have implemented SRs, either annually or periodically. These reviews have proven to be an effective tool for fiscal consolidation and improving efficiency in government spending.

Key Lessons

• SRs are adaptable and should be a core part of the fiscal management toolkit.
• Regular use of SRs increases the efficiency and effectiveness of government spending over time.
• SRs help governments achieve their fiscal targets and improve public services by focusing on value for money and efficiency.

Proposed Framework for Chile

Current Situation

Chile has an established fiscal rule and a credible budget process, and has been conducting performance monitoring and evaluations for 20 years. These are key enablers for implementing SRs.

Proposed Approach

The report recommends a hybrid model combining:

• Targeted reviews conducted annually (initially two to three per year)
• Comprehensive reviews conducted every four years at most

Organizational Structure

• The Spending Review Unit (SRU) is established within DIPRES and is essential for coordination and oversight.
• A Steering Committee, chaired by the Minister of Finance, will oversee the SR process.
• A Joint Working Group will be formed for each SR, including representatives from DIPRES, SRU, and relevant spending ministries.

Process for Conducting a Spending Review

The report outlines a four-stage process for conducting SRs:

1. Prepare Review Parameters: Define the scope, objectives, and criteria for the review.
2. Analyze Spending and Develop Policy Options: Conduct in-depth analysis of expenditures and identify savings and efficiency improvements.
3. Decision-Making: The President and steering committee will approve the saving targets and final decisions.
4. Implementation: Ensure that the identified savings are incorporated into subsequent budgets and that reforms are carried out effectively.

Institutionalizing Spending Reviews

To make SRs a permanent feature of the PFM system, the following steps are recommended:

• Legislative Integration: Amend the Public Finance Law to include SR framework and MTBF.
• Annual Budget Integration: Align SRs with the annual budget process to ensure policy options are ready for the exploratory budget phase.
• Capacity Building: Develop the SRU and DIPRES to monitor and implement multiyear saving measures.
• Evaluation Framework Alignment: Integrate SRs with the evaluation framework to use ex-post evaluations and PMG for follow-up on implementation.

Key Recommendations

Next Steps

1. Develop a Concept Note: This should outline the SR framework, including objectives, process, and organizational structure. It should be approved by the President and enacted by decree.
2. Resource the SRU: Strengthen the unit with a team of six to eight people to support the SR process.
3. Select and Announce Pilot Review: A limited or pilot SR is recommended for the 2020 budget, focusing on areas with existing work and potential for savings.
4. Conduct First Full Targeted SR: The first full targeted SR should be announced to Congress in September 2019, with final decisions expected in April 2020.
5. Prepare for Comprehensive SR: The government should consider conducting a comprehensive SR in 2021 or 2022, depending on capacity and policy alignment.

Conclusion

The introduction and institutionalization of spending reviews in Chile are critical to achieving fiscal consolidation goals and improving the efficiency of public spending. The report highlights the importance of political commitment, institutional support, and alignment with the broader PFM system. By adopting a structured approach and integrating SRs with existing processes, Chile can effectively manage its fiscal challenges and enhance the value for money of its public expenditures.