The fundamental changes in budget management that have been introduced in the OECD countries - characterized here under the rubric of performance budgeting - have caught the attention of many middle-income and emerging countries, who now seek to adopt similar reforms. The result has been that the Fiscal Affairs Department of the International Monetary Fund, as a provider of technical assistance (TA) in this area, has increasingly faced demands arising from this source. The experience has been that while it is not too difficult to design budget reform measures, and specify detailed implementation plans one generally faces an important constraint. Namely, the management skills required by the reform process are often underestimated. This paper explores, from the perspective of recent country experiences, such problems when introducing performance-based budget management reforms.
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