Performance framework in Austria: Opportunities and challenges

As of 2013 the Austrian federal government will be managed according to the principle of outcome-orientation. This reform element is integrated in a holistic financial management framework, comprising a legally binding medium expenditure framework with a relaxed budget system giving high carry-forward and shifting possibilities (as of 2009), accrual budgeting and accounting, a modified form of programme budgeting and the creation of the Federal Performance Office in the Federal Chancellery and a Budget Office in Parliament (e.g. Seiwald, Meyer, Hammerschmid, Egger-Peitler, & Höllerer, 2013; Seiwald/Geppl 2012; Steger, 2007). The relaxed budget rules, since 2009 in effect, have created an accountability gap, which will be closed by the Performance Framework.

The performance framework consists of a performance budgeting model with the obligatory definition of objectives and performance indicators for each line ministry, a performance management system with obligatory performance mandates for state bodies and organisations with budgetary responsibility as well as a performance reporting system, for both Parliament and within the government and ministries. The performance measurement systems will have been established and reorganised in order to fulfil the demands of the new performance management regime. The Performance Management Office, established in 2010, supports and advises ministries in this process, provides quality assurance to objectives and indicators and prepares the performance reports to Parliament.

Our paper will describe the key elements of the Austrian performance framework. It explains the implementation strategy and highlights opportunities, tensions as well as challenges from a practical point of view.