Improving Internal Audit in the Pacific Region

Posted by Sue Morrison[1]

A key area of PFM reform—reflected in one of the 31 indicators (PI-26) of the PEFA framework—is to improve the strength of internal audit in developing nations and vulnerable island states. In my work as an internal audit advisor in the Pacific Region—including Fiji, Papua New Guinea, Samoa, Solomon Islands, Vanuatu, and Tuvalu—I have supported the networking and professional development of internal auditors through the courses and accreditation provided by the Institute of Internal Auditors (IIA)[2], especially through IIA Australia. Although there are many thousands of kilometres of ocean between them, the network across the Pacific is building in strength and capability.

The Africa Debt Monitor

Posted by Danielle Serebro[1]

Public debt transparency depends on three key conditions: (i) effective recording, (ii) an extensive reporting function, and (iii) a willingness to share debt-related information (UNCTAD, 2018). Anomalous cases, such as Mozambique, where “off-book” loans were contracted to purchase fishing vessels and military equipment, and Zambia, which is suspected of hiding substantial external debt, have contributed to a general perception that African countries are unwilling to share their debt data and do not meet the third condition of debt transparency.

Good Financial Information Systems for Good Fiscal Transparency

Posted by Richard Allen and Gerardo Uña[1] 

The Global Initiative for Fiscal Transparency (GIFT) organized two recent events to discuss how good financial management information systems (FMIS) are good for fiscal transparency. One of them was a webinar (http://www.fiscaltransparency.net/publish/) and the other was a working lunch at GIFT’s headquarters in Washington, DC. The webinar moderator was Lorena Rivera del Paso (GIFT), and the speakers were Neil Cole (CABRI, South Africa), Gustavo Merino (Ministry of Finance, Argentina), and Richard Allen and Gerardo Uña, both from Fiscal Affairs Department, IMF. Other participants included representatives of the US Treasury Department, the Open Government Partnership, and the International Budget Partnership.

“People, Planet, & Public Finance”: Not Just Another Climate Change Podcast

Posted by Delaine McCullough and Paul Steele[1]

A new space for discussing issues related to the use of public finance systems for addressing the climate crisis, build equitable and resilient societies, and strengthen environmental stewardship was launched this week.

Join the IMF Anti-Corruption Challenge!

Posted by Thibault Vermeulen

Do you want to join the fight against corruption by finding good IT solutions? The IMF Anti-Corruption Challenge has just been launched!  Check out the #anticorruption #IMFchallenge on the following link .This initiative seeks collaborative project proposals from country authorities, relevant civil society organizations (CSOs), and staff from the IMF and other International Financial Institutions on the following topics:

Revenue Forecasting in Developing Countries: Biases and Potential Remedies

Posted by Rahul Pathak[1]

Revenue forecasting is a critical component of budget preparation and sound management of public finances. In the last couple of decades, rising national and subnational debt burdens have been associated in many countries with substantial biases in forecasts of the fiscal deficit. An important contributing factor is the systematic overestimation of revenues, leading governments to propose higher levels of spending in the budget which are subsequently approved by the legislature. As revenue realization falls short of forecast, reining in spending has proved to be difficult in many countries. This revenue forecast bias could be a result of inaccuracies in the macroeconomic forecasting models, weak institutional capacities of the central budget office,[2] and, most importantly, a manifestation of political preferences.[3] In low and middle-income countries, these factors may assume even more significance and hinder the development of an effective PFM system.

Moving Towards Green Budgeting in France

Posted by Dorian Roucher, Claire Waysand and Claude Wendling[1]

In December 2017, France joined  the Paris Collaborative on Green Budgeting, an initiative launched by the OECD to assess the compatibility of national budgets with environmental objectives, in particular with respect to climate change objectives. The first step is to take stock of expenditure and revenue having a « significant » environmental impact (either positive or negative).

Fiscal Transparency and Gender Budgeting in Southern Africa

Posted by Robert Clifton, Edwin Vela-Moyo, and Johann Seiwald[1]

Strengthening fiscal transparency and gender-responsive budgeting are priority PFM reforms in Southern Africa, the potential benefits of which are widely documented in the literature. Good progress has been made in South Africa, Mozambique, Seychelles, and Mauritius, especially on fiscal transparency, but more needs to be done in other countries. A recent workshop was organized by the IMF’s Regional Technical Assistance Center for Southern Africa, AFRITAC South (AFS), to discuss the opportunities and challenges of these reforms.[2]

How Budget Managers Make Sense of PFM Reforms

Posted by Johann Seiwald[1]

Exploring the impact of PFM reforms is still an underdeveloped area. In general, impact can be assessed through financial indicators such as forecasting errors or changes in budget composition or growth. Another approach is to analyze the perception of the change outcomes by key practitioners (for example, financial managers, economists, and accountants) and other actors. A recent study investigates how 34 senior managers responsible for PFM reforms in the UK, Austria, and Italy made sense of the perceived change outcomes. The main research question is: How do these actors perceive the reforms and how efficiently do they use the financial and budgetary information that is generated for decision making? Managers from ministries responsible for Finance, Agriculture, and Higher Education were interviewed about their experience of the design and implementation of a range of accounting and budget reforms. (https://onlinelibrary.wiley.com/doi/full/10.1111/abac.12168)

Making Public Investment More Efficient in the Philippines

Posted by Jonathan L. Uy, Roderick M. Planta, and Sailendra Pattanayak[1]

In August 2018, the National Economic Development Authority (NEDA) of the Philippines invited a team from the IMF’s Fiscal Affairs Department to carry out a review of the country’s public investment practices and related institutions, using the IMF’s Public Investment Management Assessment (PIMA) framework[2] which has been employed in more than 50 countries around the world. The PIMA report—which was welcomed by NEDA—has now been published by the IMF. In a letter to the IMF in February 2019, the Secretary of NEDA noted that the report's findings are fair and acceptable and “while the Government of the Philippines has an existing effective management mechanism, there is room for improvement for better public investment management.”