Commitment Controls: IMF Fiscal Affairs Department Publishes "Technical Notes and Manuals" Number 4

Posted by Michel Lazare.

On October 6, 2009, the IMF's Fiscal Affairs Department (FAD) published the fourth issue in the new series Technical Notes and Manuals. This document, authored by our FAD colleagues Dimitar Radev and Pokar Khemani, adresses the following key issues:

• What are the objectives of commitment controls?
• What are the preconditions for successful implementation of commitment controls?
• What are the main institutional forms and operational arrangements of commitment controls?
• What are the implications for the IMF’s operational work and technical assistance?

The full text can be accessed by clicking here: Download Commitment controls_tnm0904[1] or by visiting the IMF.org website.

It is also accesible through our Technical Notes and Manuals tab above.

Comments

[Doug Hadden]

An excellent overview of commitment controls in governent. Commitment Accounting distinguishes public from private sector accounting. The authors provide a good definition of commitments and build a strong case for effective commitment controls. They link reform of public financial management with strengthening commitment control mechanisms. I've added a review at: http://www.freebalance.com/blog/?p=436

[Udaya Pant]

This is a lucid presentation of commitment control and its nuances. I wonder if there could be a provision to 'one-time wipe out' the old arrears (should there be the funds available though savings or otherwise), so as to start the commitment control in a clean slate. I know its difficult but worh discussing.

[suhas joshi]

The idea of a "one time wipe out" of arrears looks good in theory but the reality in some countries it has been the experience that donor financed, one-off, clerances have given a negative feedback, especially before elections. Certain countries seem to have percived this as a opportunity to weaken existing commitment control systems and create further arrears before elections, in the hope that more donors shall ride to their rescue, as in the past.
So a clean slate may require vigorous implementation of exisitng commitmet controls - and a clear message that bad behavious will not be rewarded (even if the blame can be placed on previous governments).