The government is set to monitor and evaluate different ministries/divisions' Key Performance Indicators (KPIs) aiming to increase efficiency further in budgetary spending.
Under the move, the cabinet division will sign a performance agreement with ministries/ divisions soon.
Presently, every ministry/division has KPIs under the Medium Term Budgetary Framework (MTBF). There was no system to monitor or evaluate the indicators. The cabinet division is going to sign a performance agreement with ministries-divisions on the basis of existing KPIs to to this effect, Md. Mahiuddin Khan, joint secretary, ministry of finance (MoF) told the FE Sunday.
The evaluation will be conducted at the end of every fiscal year to ascertain the volume of work and number of projects completed under the KPIs, he said.
He, however, said the performance agreement would not be completed with ministries-divisions if any inconsistency remains in their KPIs. But agreement will be completed after removing inconsistency, he added.
An eight-member core committee was formed in November last to formulate a policy in this connection. Secretary (reform and coordination) of the cabinet division is the head of the committee, he further said.
The committee will prepare draft procedures aiming to introduce those in government's different divisions after reviewing the best practices of other countries of the globe, a cabinet division official said.
The evaluation of KPIs of different ministries/divisions will start from January to June of the current fiscal year, Md. Mahiuddin Khan said.
The MoF introduced the MTBF for all the ministries/divisions to empower the line ministries through delegating more responsibilities and authority, institutionalise a system for measuring output from the resources allocated, improve budget discipline and predictability and increase efficiency in budgetary spending through establishing performance indicators, a high official of the MoF said.
Although MTBF of ministries/divisions determined their KPIs, activities and target, it was confined within annual budgetary framework/system. It did not reflect the overall performance of those organisations. The government is pledge-bound to transform Bangladesh into a middle- income country through implementing its Vision-2021, he said.
Presently, The 59 ministries/divisions prepared their KPIs under the MTBF. But there are no effective measures to monitor and evaluate the KPIs, the ministry of finance data showed.
The Prime minister's office (PMO) has taken an initiative to fix under its ministries/divisions KPIs and a move is underway to sign a memorandum of understanding (MoU) with the ministries/divisions.
The government has been preparing budget under MTBF since 2005-06. Under the MTBF, the government has been providing resource allocation to the ministries/divisions on the basis of their policy documents and strategic objective and priority, sources said.
Generally, KPIs are outcome indicators of the ministries/divisions and are a set of quantifiable measures that an organisation or agency uses to compare performance in terms of meeting their strategic and operational goals, sources said.
KPIs reflect the critical success factors of an organisation. A KPI is the measurement that is used to track the overall success and abilities of an agency when it comes to achieving its strategic goals. KPI reflects how well an organisation achieves its stated goals and objectives, they said.
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