You are on page 1of 10

The views expressed in this presentation are the views of the author and do not necessarily reflect the

views
or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board
of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included
in this paper and accepts no responsibility for any consequences of their use. Terminology used may not
necessarily be consistent with ADB official terms.

Budgeting for SDGs in Mongolia:

INTEGRATING SUSTAINABLE
DEVELOPMENT GOALS IN BUDGET

Batsukh Tumurtulga: Senior Consultant, Fiscal Policy & Planning


Department, Ministry of Finance

Efficient Fiscal Governance for Sustainable Economic Growth in Asia


Bangkok, Thailand, 25 April 2019
BUDGETING FOR SDGS SCOPE AND
STRATEGIC SEQUENCE FOR THE BSDG
REFORMS IN MONGOLIA
WE ARE HERE

UNDP/ADB SUPPORT MOF UPDATES MTFF MOF COMMITS TO HAVE ALL MINISTRIES ALIGN
ACTION PLAN AND BUDGET ADDITIONAL THEIR BUDGET ANNEX
INSTRUCTIONS TO SUPPORT DISCUSSIONS ON FISCAL 1 INDICATORS WITH
SDV-2030 AND SDGS
NEW PROCESSES SPACE WITH PILOT/S

Marginal Budget
Analysis for SDG X.1
(programme 1)

Marginal Budget INTERNAL


MTFF, GGSED AND MTFF, GGSED AND
Analysis for SDG X.2 DISCUSSION AND
ALL POLICY AREAS OF A LINE MINISTRY

BUDGET CEILINGS DRAFT ANNUAL


(programme 2) ANALSYSIS OF
FOR PILOT BUDGET PRESENTS
MARGINAL
SECTORS’ SDG TARGETS AS
BUDGETS BY EACH
ADDITIONAL BUDGET
Marginal Budget SDG/POLICY AREA
FUNDING ARE OUTCOME
Analysis for SDG X.3 AT THE PILOT
SDG-BASED TARGETS
(programme 3) MINISTRY

Marginal Budget
Analysis for SDG X.4

LINE MINISTRY INTERNAL


Marginal Budget BUDGETING PROCESSES
Analysis for SDG X.5 ADAPTED
WHAT IS DONE SO FAR
• New SDG Budgeting templates for marginal
budgeting developed.

• SDG targets mapping for health sector


completed. Same exercise for environment
sector is being implemented.

• Expenditure trends analysis as means to


SDG-informed budgeting for health sector
completed. Expenditure trend analysis for
environment and tourism sector will be
carried out in spring 2019.

• Methodology Pack for Mongolia-specific


short- and long-term reforms is developed
and agreed.

• SDG Budgeting pilot process is now


extending to the environment sector.
Annex 1 submitted by MOH
SDG INDICATOR ANNEX 1 AVAILAB
LE
3.1.1 Maternal mortality ratio YES YES
3.1.2 Proportion of births attended by skilled health personnel NO YES
3.2.1 Under-five mortality rate YES YES
3.2.2 Neonatal mortality rate YES YES
3.3.1 Number of new HIV infections per 1,000 uninfected population, by sex, age and key NO YES
populations
3.3.2 Tuberculosis incidence per 1,000 population YES YES
3.3.3 Malaria incidence per 1,000 population NO YES
3.3.4 Hepatitis B incidence per 100,000 population YES YES
3.3.5 Number of people requiring interventions against neglected tropical diseases NO YES
3.4.1 Mortality rate attributed to cardiovascular disease, cancer, diabetes or chronic respiratory YES YES
disease
3.4.2 Suicide mortality rate NO YES
3.5.1 Coverage of treatment interventions (pharmacological, psychosocial and rehabilitation and NO NO
aftercare services) for substance use disorders
3.5.2 Harmful use of alcohol, defined according to the national context as alcohol per capita NO NO
consumption (aged 15 years and older) within a calendar year in liters of pure alcohol
3.6.1 Death rate due to road traffic injuries NO YES
3.7.1 Proportion of women of reproductive age (aged 15-49 years) who have their need for YES YES
family planning satisfied with modern methods
3.7.2 Adolescent birth rate (aged 10-14 years; aged 15-19 years) per 1,000 women in that age NO YES
group
3.8.1 Coverage of essential health services (defined as the average coverage of essential services NO NO
based on tracer interventions that include reproductive, maternal, newborn and child health,
infectious diseases, non-communicable diseases and service capacity and access, among the
general and the most disadvantaged population)
3.8.2 Number of people covered by health insurance or a public health system per 1,000 NO YES
population
3.9.1 Mortality rate attributed to household and ambient air pollution NO NO
3.9.2 Mortality rate attributed to unsafe water, unsafe sanitation and lack of hygiene (exposure NO NO
to unsafe Water, Sanitation and Hygiene for All (WASH) services)
3.9.3 Mortality rate attributed to unintentional poisoning NO YES
3.A.1 Age-standardized prevalence of current tobacco use among persons aged 15 years and NO YES
older
3.B.1 Proportion of the population with access to affordable medicines and vaccines on a YES NO
sustainable basis
3.B.2 Total net official development assistance to medical research and basic health sectors NO NO
3.B.3. Proportion of health facilities that have a core set of relevant essential medicines available NO NO
and affordable on a sustainable basis
3.C.1 Health worker density and distribution NO YES
3.D.1 International Health Regulations (IHR) capacity and health emergency preparedness NO YES
Budget Annex 1 in All Sectors

Sector/Ministry Related SDGs Number of Nature of indicators


(our assessment) indicators
Environment SDG 15, SDG 13, SDG 6, 10 mostly outputs
SDG 7, SDG 12
Tourism SDG 8 2 only outputs
Foreign relation SDG 10 10 mix of outputs and
inputs
Finance SDG 8, SDG 17, SDG 1 14 mix of outputs and
inputs
Justice and internal affairs SDG 5, SDG 16, SDG 10 73 mix of outputs and
inputs
Construction and urban SDG 6, SDG 11 10 mostly outputs
development
Education SDG 4 19 mostly outputs
Science SDG 9 3 mostly outputs
Culture and art 5 mostly outputs
Sport 2 only outputs
Road and transport SDG 9 21 mostly outputs
development
Mining and heavy 17 mostly outputs
industry
Labour and social welfare SDG 1, SDG 2, SDG 5, 25 mostly mix of outputs
SDG 8 and outcomes
Agriculture SDG 2, SDG 9 12 mostly outputs
Health SDG 3, SDG 2, SDG 11 18 mostly outcomes
Energy SDG 7 4 only outputs
National Human Rights SDG 10, SDG 16 5 only outputs
commission
National Statistics Office SDG 17 5 only outputs
Civil Service Council SDG 10, SDG 16 6 mostly outputs
Independent Authority SDG 10, SDG 16 5 mostly outputs
against corruption
TOTAL 266
Recommended Process for the
MOH for better integration of SDGs
into the MTFF, GGSED and budget
formulation
CRITICAL DECISIONS TAKEN FOR 2019
DECISION AREA MIN MID MAX
1. Number of pilot One (Ministry of Health) Adding SDG priority ministries as Rolling-out of new
ministries for BSDG pilots approaches to all ministries
(application of new SDG
templates, adjusted Ministry of Environment and
MTFF/GGSED/budget Tourism
formulation timetable,
ensuring budget ceilings
are SDG-based, etc.)
2. BSDG Horizontal No rolling-out to other Limited approach – use SDG Rolling-out of SDG
Reforms line ministries of any targets in 2020 Budget Annex 1 templates for Additional
BSDG reforms solely for information purposes Budget Requests to other
but no bridging with budget ministries (few or even all)
appropriations
3.BSDG Vertical Reforms No change to 2019 MOH internal process Expand the application of
budget process (limited adjustments to fully own the BSDG templates to all
use of BSGD templates process of development of SDG- sectors during the MTFF
driven by Development based justification of MTFF, and budget formulation
Partners) GGSED and 2020 budget processes.
proposal for Additional Budget
Requests
4. Adjusting 2020 Budget No change to 2020 No formal/legal changes to the Budget Calendar is adjusted
Calendar to host SDG Budget Calendar 2020 Budget Calendar but MOF bringing budget
related processes adjust its internal timelines to negotiations earlier in the
host health sector SDG-based process and allocating
negotiations on SDG policies, more time for SDG-based
targets and budget ceilings. This negotiations prior to
process adjustment is reflected budget ceilings
in the Budget Instructions to development
inform the MOH.

5. Budget Instructions to No changes to 2020 2020 Budget instructions have 2020 Budget instructions
host SDG related budget instructions are additional requirements for have additional
requirements made MOH pilot only requirements for MOH pilot
and general requirement
for other ministries for
SDG-friendly 2020 Budget
Annex 1)

6. Adjustments to the GGSED reflects on SDG GGSED reflects on SDG targets GGSED development
General Guidelines fortargets for the health for all sectors process adjusted to host
Social Economicsector (for information SDG-based priority setting
Development only) and development of
guidelines
7. Adjustments to the No changes to MTFF SDG-based budget negotiations MTFF contains SDG policies
MTFF development process in 2019 are brought forward into the and targets-driven budget
MTFF formulation stage. MTEF decisions for all sectors
chapter on health sector
contains decisions on additional
funding using SDG policies and
targets
CRITICAL DECISIONS TAKEN FOR 2019
DECISION AREA MIN MID MAX
8. Budget Proposals are Budget proposal for Budget proposal for MOH Budget proposals for
SDG-based MOH presents SDG- presents SDG-based other ministries present
based justification for justification the whole MOH SDG-based justification
Additional Budget 2020 budget package
Requests only
9. Citizen’s Budget No change in Citizen’s Citizen’s Budget integrates SDG Citizen’s Budget integrates
Budget coverage policies and targets summary SDG policies and targets
for health sector summary for all relevant
SDG sectors
10. Role of the National No specific role on NDA provides necessary inputs NDA provides inputs on
Development Agency SDGs for NDA during (assessments) to the MOF on SDG policies/targets for all
MTFF/budget SDG policies and targets for the sectors; contributes with
formulation health sector in the GGSED analyses for gradual
bridging of the GGSED
with MTFF process
11. Role of the No additional role for Explanatory meetings and Parliament engages on
Parliament parliament on SDG workshops on Budget Annex 1, 2020 budget scrutiny
budgeting for 2020 SDG policies and targets in the using SDG policies and
process budget, new SDG budgeting target
concepts and templates
12. Role of Cabinet No specific role for CSOs are invited to monitor MOF and line ministries
Secretariat Office CSOs on SDG and evaluate SDG-based engage CSOs in both
Budgeting for 2020 budget performance using PFM budget formulation and
budget cycle analytical tools for selected monitoring&evaluation of
pilot areas SDG-based budget
performance using PFM
analytical tools
13. SDG Budgeting No new organizational MOF health sector experts MOF introduces new
organizational and structured introduced (and others) participate in SDG specific organizational
functional adjustments at MOF budgeting workshops and responsibility/functions
introduced at MOF apply new approaches for the directly responsible for
2020 budget process SDG budgeting

14. SDG Budgeting No changes to current MOH internally engages sector MOF centrally facilitates
functions enhanced at practices in line policy units early in the SDG-based MTFF and
line ministries ministries budgeting process so SDG budget formulation
policies and targets form the process in all line
grounds for MTFF and budget ministries via Budget
proposal development Instructions and other
formal channels
15. Introducing new No SDG classification is MOF gradually introduces SDG FMIS integrates SDG
budget classification on introduced for 2020 policy-budget mapping table budget classification and
SDGs budget process (manual process) makes the process
automated (with or
without changes in the
chart of accounts)
Recommended Templates to Use
Template 1: Additional Budget Request Proposal – (see ANNEX A. Template 1) is
designed for a line ministry to use in presentation and justification of individual new
budget initiatives (on new or additional budget requested).
Template 2: Package for Additional Budget Requests per each line ministry - (see ANNEX
B. TEMPLATE 2) is designed to present the whole package of new budget initiatives for a
single line ministry presented with supplemental information on relative prioritization
of individual initiatives, their expected comparative effectiveness and contribution to
SDG targets and geographical distribution of the requested additional funding per
provinces and per sector policy issues (relevant SDG indicators and targets).

Analytical Steps and Required Expertise

Step Template to use Primary Expertise required


1. Problem Definition and Policy-Based Prioritization
1.1. Cross-mapping of various national policy targets Template 1 and 2 policy and M&E expertise
1.2. Budget Priority Policy Targets Template 2 policy and M&E expertise
1.3. Regional Breakdown of the Budget Policy Targets Template 1 and 2 policy and M&E expertise
(optional)
2. Development of Additional Budget Request Proposals
2.1. New Budget Initiative for each Priority Policy Target Template 1 policy and finance expertise
2.1.1. Problem tree Template 1 policy expertise
2.1.2. Suggested budget intervention mix Template 1 policy expertise
2.1.3. Assessment of the expected impact Template 1 and 2 policy expertise
2.1.4. Costing of the initiative per proposed outputs Template 1 finance expertise
2.1.5. Cost Effectiveness Analysis Template 1 and 2 policy and finance expertise
2.1.6. Justification of the targeting Template 1 and 2 policy expertise
2.2. Development of the Budget Allocation Package Template 2 finance expertise
2.3. Sensitivity Analysis by SDG targets Template 2 policy and finance expertise
3. Budget Negotiations with the MOF on the package policy and finance expertise

The new templates are designed as part of the following sequence of steps:
Sequence of Analytical Steps in Application of the ABR templates

Problem Developme Budget


Definition nt of Negotiations
and Policy- Additional with the
Based Funding MOF and
Prioritization Requests decisions
(by SDGs)
RECOMMENDED STRATEGY
Continuing the pilot with the Ministries of Health and
Environment and Tourism and to focus on four main outputs for
2020:
A. Pilot new budgeting processes at the pilot ministries so SDGs
and related budget allocations are negotiated with the Ministry
of Finance during the MTFF process (in April 2019).
B. Use New SDG Budgeting Templates for all new or additional
funding requests of the pilot ministries
C. Introduce in the Budget Instructions the need for using SDG
targets during budget formulation
D. Align 2020 Budget Annex 1 indicators with SDG targets

NEXT STEPS DURING 2019


1. MOF develops required guidance and methodology support to
drive the Budgeting for SDGs reforms.
2. MOF communicates to MOH and MOET the agreed approach and
requirements for GGSED, MTFF, budget ceilings and budget
proposal development stages
3. MOF health and environment experts work on health and
environment sector expenditure analyses (with UNDP support)
and prepare SDG-driven policy and budget expectations to the
MOH and MOET from the MOF perspective for the MTFF and
budget formulation stages.
4. MOH and MOET policy units engage in MTFF proposal
development using new templates based on SDGs. As a result,
MOH and MOET develop MTFF proposal using new SDG
templates on Additional Budget Request.
5. MOH and MOET present SDG policies and indicators to the MOF
during GGSED development.
6. MOH and MOET develop recommendations on improving budget
revenue and expenditure allocation effectiveness and efficiency.
7. MOF negotiate with MOH and MOET on Additional Budget
Requests using SDGs for decision-making (April 2019).
8. Budget Ceilings incorporate the decisions on pilot SDG areas.
9. Budget Instructions revised to request ministries to adjust their
inputs for the Budget Annex 1 to make their sectoral
performance indicators more SDG-linked.
10. MOH and MOET budget proposals are developed using SDG
information and the SDG-3 and SDG-15 related information is
part of the draft budget submitted to the Great State Khural.
11. Decision on including SDG targets (SDG 3, SDG 15 and selected
other sectors or all) in the next round of the Citizen’s Budget
development.