decision making and performance management in public finance kamu maliyesinde karar alma ve...

Decision Making and Performance Management in Public Finance Kamu Maliyesinde Karar Alma ve Performans Yönetimi TR08IBFI03

Day 1:Government´s strategy instruments in

Finland

Virpi Einola-Pekkinen10.1.2011


Government structure in Finland

There are 12 ministries in Finland. Each ministry is, within its mandate, responsible for

the preparation of issues that fall within the scope of the Government and also for the proper functioning of administration.

Ministries’ mandates are laid down in the Government Rules of Procedure and their duties in decrees issued on the ministries.

The ministries together employ about 5,000 people.


Ministries

Prime Minister's Officewww.vnk.fi/english

Ministry for Foreign Affairsformin.finland.fi/english

Ministry of Justicewww.om.fi/en

Ministry of the Interiorwww.intermin.fi/en

Ministry of Defencewww.defmin.fi/english

Ministry of Financewww.ministryoffinance.fi

Ministry of Education and Culturewww.minedu.fi

Ministry of Agriculture and Forestrywww.mmm.fi/en Ministry of Transport andCommunicationswww.lvm.fi/web/en

Ministry of Employment andthe Economywww.tem.fi Ministry of Social Affairs and Healthwww.stm.fi/en/ Ministry of the Environmentwww.environment.fi/ym


The Government’s Employees per Administrative Branch, April 2010

04/2010

President’s office 88

Prime Minister’s office 271

Ministry for Foreign Affairs 1 573

Ministry of Justice 9 646

Ministry of the Interior 15 841

Ministry of Defence 16 071

Ministry of Finance 13 180

Ministry of Education and Culture 3 561

Ministry of Agriculture and Forestry 5 323

Ministry of Transport and Communications 2 334

Ministry of Employment and the Economy 13 143

Ministry of Social Affairs and Health 3 882

Ministry of the Environment 1 022

In total 85 935


The Government’s policy in Finland is based on the Government Programme, the tool whereby the Government

strives to meet the great challenges facing Finland

The cornerstones of the Programme are: an economic strategy taking account of the requirements set by

1. Global competition and the ageing population2. Reforms of social security and publicly funded welfare services that improve

people’s social security and well-being and3. Responsible climate and energy policy.

The objective of economic policy is to accelerate the growth of productivity and to increase employment.


Government Programme and the Budget

The constitution requires the Government to establish the Government Programme and to present it to the Parliament as a report.

The Government Programme defines the main lines of fiscal policy.

In the Government Programme are included the fiscal policy rules and targets and spending limits for the electoral period. The budget proposal is drawn up in accordance with these guidelines.


The Finnish programme management reform

Programme management is a new policy coordination method at the centre of

the Government and consists of three main elements:

1. a limited number of intersectoral Government policy programmes2. the Government Strategy Document process and 3. the Government’s mid-term policy-review sessions.

aims at more horizontal and strategic policymaking and ensuring effective implementation of the Government’s political agenda.


The Government´s strategic tools


Intersectoral policy programmes agreed in the Government

1. Policy programme for employment, entrepreneurship and worklife2. Policy programme for health promotion3. Policy programme for the well-being of children, youth and families.

In addition a number of subject areas under special monitoring: climate and energy know-how and innovations revision of administration restructuring of local government and services social security, social exclusion and social security reform preparing for ageing security and Finland’s international position.


The main objective of programme management reform

was to strengthen the strategic capacity of the central government by concentrating on the horizontal political priorities.

The reform aims at more strategic and horizontal policymaking and stronger political steering as well as simultaneously ensuring an effective horizontal implementation of the Government’s political agenda.

As part of programme management reform it has been of utmost importance to closely link the Government Programme monitoring process to the Government budgetary process. The most important issue is that the schedules of the two main processes of the Government are annually linked together.


These overall objectives can be broken down into more specific objectives as follows

• To improve the Prime Minister’s possibilities to manage and monitor horizontal Government policies and actions.

• To strengthen individual ministers’ possibilities to participate in the collective work of the Government.

• To enhance effective and well-functioning coordination within the central administration.

• To profit from modern management tools, based on networking, both administratively and politically.


Management structure of policy programmes

Each policy programme is led by a coordinating minister, and ministerial groups have been appointed to plan the programme and to monitor its implementation.

The ministerial groups consist of ministers whose mandates are linked with the programme themes. The coordinating ministers are assisted by full-time programme directors in the coordinating minister’s ministry.

For more detailed preparation and monitoring, each programme has a management group consisting of civil servants from the ministries that are relevant in view of the programme objectives. The management group supports and assists the programme director.


Government Strategy Document

the Government issued a Resolution on 5 December 2007

enhances the means available to the Government for promoting, steering and monitoring the implementation of the Government Programme

especially in matters requiring intersectoral cooperation

emphasises the indicators used in monitoring the implementation of the Government Programme.


One example:POLICY PROGRAMME FOR EMPLOYMENT,

ENTREPRENEURSHIP AND WORKLIFE

The main objectives of the programme are to ensure that people’s work input is utilised as fully as

possiblethat substantial improvements can be achieved in the

productivity of work and in the quality of worklife at Finnish workplaces during the coming decades, and

that entrepreneurship and enterprise growth gain more appeal.


Some examples of objectives and indicators

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