New Opportunity to Finance PEFA-related Research Through SAFE Grants

Posted by the PEFA Secretariat

The PEFA Secretariat is pleased to inform that applications are invited for grants to support eligible public financial management reform projects in countries that are intended beneficiaries under the SAFE Trust Fund. The deadline for proposals is 31 July 2012.

The SAFE trust fund group seeks to improve the status of PFM across countries in the Europe and Central Asia region and includes two pools of funds to provide support for activities led by governments under 3 pillars: 1) to assess public financial management (PFM) performance; 2) to identify and implement actions to achieve improvements in public financial management; and 3) to share knowledge and good practices. The selection criteria for SAFE funded projects emphasize the links to the PEFA performance measurement framework as a diagnostic and analytical tool for PFM reform.

IMF Weighs in on Health Care Reform

Previously published on IMF Survey

Economies the world over will be hit with rising health care costs at a time when many of them need to undertake large fiscal adjustments to reduce deficits and debt.

According to IMF analysis released earlier this week, reforming health care systems should be high on the list of priorities of governments as they continue to work on cutting deficits and debt.

Health care costs have skyrocketed over the past few decades with the introduction of new and very expensive technologies to treat patients. Aging populations are also contributing to cost increases.

Faced with uncertainty regarding longer-term recovery prospects for the global economy, governments may soon be in a difficult spot if they fail to make the necessary reforms to health care systems.

“We enjoy a higher quality of health care today, but we have to find a way to finance it,” said IMF Deputy Managing Director Min Zhu. Zhu addressed officials, journalists, and academics gathered at a special seminar to discuss the findings in a new book The Economics of Public Health Care Reform in Advanced and Emerging Economies.

“This new book brings forward a lot of the challenges we face today. Across the world, countries are seeing aging populations, rising costs of health care, or both. We have to take action today in a clear, strong, determined way on a global basis to address these issues,” said Zhu.

New Zealand to Legislate an Expenditure Rule

Posted by Ian Lienert

Euro-zone countries are being admonished by the EU to strengthen their fiscal frameworks, including by introducing a legislated budget balance rule in national legislation. On the other side of the globe, the New Zealand Government has announced that its fiscal framework will be strengthened, by introducing a spending fiscal rule in amended legislation. The similarity of the EU and New Zealand actions is striking, given the large differences in fiscal consolidation needs. For example, Euro area gross general government debt was nearly 90 percent of GDP in 2011, in contrast to New Zealand’s relatively low ratio of 44 percent. [1]

The New Zealand Government’s announcement was preceded by considerable analysis and strong criticism by some commentators. The Government’s advisor, the Treasury (New Zealand’s “ministry of finance”), while supporting self-imposed limits on new spending as a means of controlling growth in expenses, does not support a legislatively embedded formula-based spending limit.[2] However, because of the Government’s agreement with a minor political party there is a proposal to amend the Public Finance Act, which, if enacted, would make the new fiscal rule permanent, unless a future government initiates its repeal.

NewsFlash: Una nueva herramienta para los evaluadores PEFA: la guía práctica o “PEFA Fieldguide”

No.18
9 Mayo 2012

La Secretaría del PEFA se complace en lanzar su nuevo Fieldguide para evaluadores. Concebido como un e-documento que se puede imprimir como un documento de hojas sueltas y que se puede actualizar de forma regular, el Fieldguide es el resultado de la recopilación de toda la orientación y notas técnicas existentes, actualizadas y elaboradas por la Secretaría del PEFA para facilitar el trabajo técnico de los evaluadores del PEFA. Esa guía incluye todos los consejos obtenidos a partir de los siguientes documentos (disponibles en nuestra página web: www.pefa.org ) y organizados por cada dimensión:

-  El Marco de medición del desempeño de las gestiones de finanzas públicas (junio de 2005)

-  Buenas prácticas en la aplicación del marco de medición del desempeño de la GFP (marzo de 2009)

-  Aclaraciones sobre el Marco de medición del desempeño de la GFP de junio de 2005 (actualizadas a marzo de 2012 en ingles)

- Orientación sobre las pruebas y las fuentes de información para respaldar el puntaje de los indicadores (actualizada en febrero de 2007)

- Cuestionario para la aplicación sobre el terreno del marco de referencia para la medición del desempeño en materia de GFP del Programa PEFA (diciembre de 2007)

-  Preguntas más frecuentes en la página Web del PEFA.

Ese documento es actualmente ingles. Las traducciones al francés y en español estarán disponibles en breve.

Envíenos sus comentarios a: services@pefa.org

La Secretaría del PEFA.

 

Note: The posts on the IMF PFM Blog should not be reported as representing the views of the IMF. The views expressed are those of the authors and do not necessarily represent those of the IMF or IMF policy.

NewsFlash: Un nouvel outil pour les évaluateurs du PEFA: le guide pratique ou « Fieldguide »

No.18
9 Mai 2012

Le Secrétariat du Programme d’examen  des dépenses  publiques et d’évaluation de la responsabilité financière (PEFA) a le plaisir d’annoncer le lancement de son nouveau guide de terrain (« Fieldguide ») pour évaluateurs PEFA. Conçu comme un e-document à imprimer ou un document à feuillets mobiles pouvant être mis à jour, ce guide est le résultat de la compilation de toutes les orientations et notes techniques existantes et mises à jour, produites par le Secrétariat du PEFA afin de faciliter le travail technique des évaluateurs PEFA. Cette information couvre tous les conseils extraits des documents suivants (tous disponibles sur notre site Web: www.pefa.org ) et organisés par dimension:

- Le Cadre de mesure du rendement de gestion des finances publiques (Juin 2005)

- Bonnes pratiques dans l’application du Cadre de mesure de la performance de la GFP   (Mars 2009)

- Clarifications sur le Cadre de mesure de la performance de la GFP de Juin 2005 (mise à jour en anglais de Mars 2012)

- Lignes directrices et sources d’information pour faciliter la notation des indicateurs (mise à jour Février 2007)

- Questions pratiques pour l’application du Cadre de mesure de la performance PEFA (Décembre 2007)

- Questions et réponses sur le site Web du PEFA.

Ce document est actuellement seulement disponible en anglais. Les traductions en français et espagnol seront disponibles sous peu.

Envoyez-nous vos commentaires à: services@pefa.org

Le Secrétariat du PEFA.

 

Note: The posts on the IMF PFM Blog should not be reported as representing the views of the IMF. The views expressed are those of the authors and do not necessarily represent those of the IMF or IMF policy.

NewsFLash: A new tool for PEFA assessors: the Fieldguide

 No.18
9th May 2012

The PEFA Secretariat is pleased to launch its new Fieldguide for assessors. Conceived as an e-document or to be printed as a loose- leaf document that can be updated on a regular basis, the Fieldguide is the result of the compilation of all existing and updated guidance and technical notes produced by the PEFA Secretariat to support the technical work of the assessors in the field. The Fieldguide includes information and advice drawn from the following documents (all available on our website: www.pefa.org) and is organized dimension-by-dimension:

- The Public Financial Management Performance Measurement Framework (June 2005)

- Good Practices in Applying the PFM Performance Measurement Framework (March 2009)

- Updated Clarifications to the PFM Performance Measurement Framework of June 2005 (updated as of March 2012)

- Guidance on evidence and sources of information to support the scoring of the indicators (updated February 2007)

- Queries for the field implementation of the PEFA Framework (December 2007)

- Frequently Asked Questions on PEFA website.

 

This document is currently available in English. Translations in French and Spanish will be available shortly.

We welcome your feedback: services@pefa.org

A new tool for PEFA assessors: the Fieldguide

Note: The posts on the IMF PFM Blog should not be reported as representing the views of the IMF. The views expressed are those of the authors and do not necessarily represent those of the IMF or IMF policy.

Learning from Crisis Key to Restoring Economic Growth

Previously published on IMF Survey Magazine

• Crisis lessons offer insight for future policy
• Budget cuts work alongside growth-oriented policies
• Growth challenged in light of spending cuts

With many countries still experiencing an uncertain economic outlook, charting a course back to economic prosperity might prove to be difficult, but not impossible, delegates at a conference said.

With economic uncertainty still lingering over many economies, policymakers, academics, and senior IMF officials gathered for the 3rd Annual Fiscal Forum to discuss global fiscal issues.

Budgetary Reforms in South Asia

Extracts from a Project Report by Author on ‘Budgetary Reforms in South Asia’ Sponsored by the Indian Council of Social Science Research

Posted by Udaya Pant

Afghanistan

As a result of the Making Budget Work (MBW) and Making Budget and Air Work (MBAW) projects, budgets are now prepared on time and increasingly reflect the priorities of the Afghan National Development Strategy (ANDS) and the provincial needs. Budget officers from the project assist the line ministries in formulating and submitting the budget proposals on time and in accordance with national and ministerial policies and priorities.

Program and provincial budgeting were introduced in Afghanistan from fiscal year 2007. Progress on these has been slow, yet steady. The provincial budgeting pilot was to cover all 34 provinces by 2011. The program budgeting pilot covered 17 ministries by 2011. Each Ministry has formed a Program Budget Implementation Team, and training sessions on program budgeting have been delivered to all of these teams. The program and provincial budgeting pilots have improved budget formulation processes, increased transparency in government expenditures and ensured the foundation for increased inclusion of the provinces in the national budget formulation and implementation process, increasing equity in the distribution of resources across the country.

Extending Treasury Single Account Coverage in Rwanda to Include Development Partners Project Accounts

Posted by Patrick Shyaka, Caleb Rwamuganza, and Michael Schaeffer[1]

 

International good practice dictates that government controlled trust funds and extra-budgetary funds should be brought within the Treasury Single Account (TSA).  Although all Rwandan donor project accounts reside within the National Bank of Rwanda, none of these project accounts have been integrated with the government's primary Treasury Single Account.  From a cash management perspective, shifting donor project funds from their current accounts in the Central Bank into the Treasury Single Account (TSA) will be of immense benefit to the government.  

The Government of Rwanda launched its pilot (development partner) project TSA in December 2011.  The pilot project TSA currently covers 14 key project bank accounts with balances of approximately US$75 million.  During 2012, the Government of Rwanda intends to expand the Project TSA accounts to include more project accounts.   

The consolidation of cash resources through a Project TSA arrangement is meant to optimize government cash management. Effective aggregate control of cash is a primary fixture in monetary and budget management. The primary objective(s) of Rwanda’s Project TSA include: efficient budget execution and management; minimizing transactions costs, and engaging in effective reconciliation between banking and accounting data. The following discussion provides a brief overview of how the government of Rwanda was able to extend its Treasury Single Account to include Development Partner Project accounts. 

 

Georgian State Treasury Hosts Workshop on Treasury and External Financing Reforms

Posted by Ion Chicu, World Bank, and David Tsekvava, Deputy Head of State Treasury, Ministry of Finance, Georgia 

A three-day PEMPAL [1] Treasury Community of Practice (TCOP) workshop was held in Tbilisi, Georgia on February 27-29, 2012 on public finance reform progress related to Treasury systems and external financing.  Fifty participants from ten countries attended (Albania, Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Ukraine).  Experts from the World Bank provided information on regional and international developments and technical support to the discussions.  The meeting was hosted by the State Treasury of the Ministry of Finance of Georgia who proved to be warm and wonderful hosts.

The meeting followed from an earlier meeting in Astana, Kazakhstan on September 27-29, 2011 whereby more than 80 participants from 17 countries from the Bank’s Europe and Central Asia (ECA) region met to discuss progress in implementing integrated financial management information systems across the region. Many TCOP member countries are the recipients of external financing in various forms and a need was identified for a smaller group meeting to address the issues associated with the effective management of external financing.  The practical problems faced in the process of integrating external financing into national budget systems are widely known. In many cases the challenges are related to the fiduciary requirements of the donor organizations. National systems do not always fully fit those requirements, which leads to the use of parallel mechanisms, such as those often established to implement donor-funded investment projects.  Within the framework of public financial management (PFM) reforms, and consistent with the principles espoused by the Paris Declaration of Aid Effectiveness, PEMPAL member countries have been pursuing the objective of integrating external financing into all stages of the budget process.