Observations on the 2023 national progress report

• Three times less financial resources are planned to meet the national progress targets than would be needed to achieve the objectives of the National Progress Plan.
• Changes in strategic management and budgeting are still ongoing: not all programmes have been approved, not all progress measures are planned.
•  Progress monitoring lacks the tools and data to periodically measure the achievement of indicators, to assess progress in the mid-term period.

As part of the implementation of the recommendations of previous National Audit Office’s audits, the government is undergoing a transformation of strategic management and budgeting from 2021. The three-year budget for 2025-2027 is now being formulated, the evaluation of follow-up activities and progress measures is being organised, and a monitoring system is being developed. Around EUR 18 billion is planned to achieve the ten objectives of the National Progress Plan 2021-2030, which are implemented by 14 ministries (around 10% of the state budget appropriations each year). The Plan sets out the main changes to be achieved in the country to ensure progress in the social, economic, environmental and security fields. However, there is still a lack of action to assess the planned objectives for national progress and to align them with financial possibilities. This is the result of the National Audit Office's audit "Changes in strategic management and budgeting".

"To create reasonable expectations, the progress planned and implemented must be in line with the country's financial capacity. So far, the financial resources planned to achieve the national progress targets are three times lower than those needed to achieve the objectives of the National Progress Plan, and there is a lack of objective data to measure progress. The practical weaknesses of the strategic management system have also been highlighted by the results of our other audits and assessments, such as the balance between the needs for modernisation of the penal enforcement system and the resources allocated, and the planning of state border security needs", - stated Mindaugas Macijauskas, Auditor General.

As the audit shows, some important changes in strategic management and budgeting are still in progress: the Civil Protection Strengthening Development Programme has not been approved, 44 out of 180 (24%) progress measures have not been designed and some of them have been approved only partially. The failure to approve all actions, and to align the approved actions with the State's financial capacity, has not created the conditions to address the challenges in the areas of State's activity expeditiously with progress funds. Also, the Plan for the Evaluation of the 2024-2027 Progress Measures has not been approved, the systematic review of the funds for follow-up has not been completed and the first triennial State budget has not been finalised. 

According to the auditors, there is a lack of data and tools to periodically assess progress: the Strategic Management Information System (SIS) is not adapted to the new strategic management system and the new system (SVIS) is still under development. Data for monitoring is collected from reports rather than from the system, thus reducing the effectiveness of the planning, monitoring and reporting processes.

In order to achieve effective progress in the country, linked to the state's financial capacity, we recommended that the Office of the Government set out the principles for the preparation of the National Progress Plan (scope, indicators). To implement the recommendation, the Office of the Government planned to develop a model for setting the Plan's indicators and to take decisions on updating the Plan in line with the alignment of progress planning with financial resources.