New Insights on National Oil Companies

Posted by David Mihalyi and Patrick Heller[1]

National oil companies (NOCs) are economic giants controlling at least $3.1 trillion in assets and producing most of the world’s oil and gas. Many of these companies execute complex projects, provide critical energy infrastructure, and make a big contribution to local employment and state revenues. But NOCs also present important risks to public finance, as we highlight in a new report from the Natural Resource Governance Institute (NRGI), based on a database covering 71 national oil companies worldwide, from 2011 to 2017.

Rethinking the Design of FMISs

Posted by Richard Allen and Gerardo Uña[1]

Financial management information systems (FMISs) are a vital tool for governments to process, store, and report on financial information and transactions. A well-functioning FMIS provides timely, reliable, and comprehensive reports that support the government’s fiscal policies and fiscal rules, and the formulation, control, monitoring, and execution of the budget. If used well, these systems promote financial integrity and transparency.

Open Contracting: Getting Better Value for Money

Posted by Lindsey Marchessault^[1]

Every year governments spend an estimated US$ 9.5 trillion (15% of global GDP) through contracts on everything from pencils and paper to building major infrastructure projects. And every year, there are numerous cases where these contracts do not deliver good value for money. While the high-profile cases tend to make the news, there are often many more contracts that suffer from cost overruns, delays, poor quality, or corruption. In its recent Fiscal Monitor: Curbing Corruption, the IMF identifies the opportunities in putting an emphasis on procurement. This blog explores how open contracting can provide an innovative solution to the challenge of making procurement more effective, fairer and more transparent.    

How Parliamentary Budgets are Set and Managed in Europe

Posted by Johann Seiwald[1]

How do legislatures in Europe prepare and execute their budgets? This question was analysed in a recent survey of 20 EU Member States prepared by the Austrian Parliamentary Budget Office. The purpose of the study was to understand the rules and procedures that determine the budgetary process in national parliaments, the extent of parliamentary budgetary autonomy, and the links with good budget practices. The main results are summarized in Figure 1 below.

Delivering Social Benefits in India through the FMIS

Posted by Alok Verma[1]

The Prime Minister of India recently launched a direct cash transfer program targeting 120 million small and marginalized farmers with an annual budget allocation of $11 billion. The program is called Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). Under this scheme, which was announced on February 1^st 2019 and executed only three weeks later, an initial database of 10.1 million beneficiaries was established and a first installment of INR 2000 (about US $28) was transferred to each farmer’s bank account.

Implementing a Treasury Single Account in Niger

Posted by Matthieu Sarda[1]

The implementation of a treasury single account (TSA) is recognized as a core PFM reform. It allows countries to plan and manage their financial commitments by mobilizing resources more easily. Yet, as crucial as a TSA may be, its implementation has proved challenging in the eight West Africa Economic and Monetary Union (WAEMU) countries[2]. The reasons are political rather than technical. Public entities characteristically fear that by transferring funds to the TSA they will lose of control of the resources they manage.

La mise en œuvre du Compte Unique du Trésor au Niger

Par Matthieu Sarda[1]

La mise en œuvre d’un compte unique au Trésor (CUT) représente « la mère des réformes », permettant à un État de mieux faire face à ses engagements en disposant de ressources publiques plus facilement mobilisables. Or, cette réforme, aussi nécessaire soit elle, se trouve inachevée dans la plupart des huit pays d’Afrique de l’Ouest (UEMOA)[2], pour des raisons essentiellement politiques : en effet, les entités publiques redoutent de perdre le contrôle des ressources qu'elles gèrent en transférant des fonds sur le CUT.

Why PEFA Does Not Need a Gender Budgeting Framework

Posted by Bryn Welham[1]

The Public Expenditure and Financial Accountability (PEFA) framework is the most frequently used diagnostic tool for assessing the effectiveness of public expenditure processes in developing countries.  The PEFA Secretariat is holding public consultations on a gender module that would add up to 22 new indicators to assess whether public financial management (PFM) systems take sufficient account of gender issues.

How to Improve Financial Accountability in Pakistan

Posted by Muhammad Akram Khan[1]

Public financial management (PFM) arrangements in Pakistan perpetuate a system that the colonial rulers designed for effective control of taxes collected from the local populace. Globally, PFM concepts and practices have changed significantly since then, but very little in Pakistan. They fail to recognize that public managers should be accountable for the resources they manage, or that the PFM systems should generate reliable financial and performance information besides exercising robust internal controls.

IMF’s PFM Online Course to Open Year-Round

 

Posted by Fabien Gonguet

The Fiscal Affairs Department and the Institute for Capacity Development of the IMF are pleased to announce that the online course on Public Financial Management (PFM) will relaunch on May 1, 2019 and remain open year-round. In its two previous offerings, this free online course has been taken by more than 2,200 participants in 194 countries, with very high satisfaction rates. Taught by more than 15 experts of the Fiscal Affairs Department, the course is open for government officials, staff of bilateral and multilateral development agencies, civil society organizations, parliamentarians, academics and the general public. The course has been updated in 2019 to reflect the revisions brought to IMF’s PFM standards and tools and adopted in the last twelve months – namely the Public Investment Management Assessment (PIMA) framework and the Natural Resource Management pillar of the Fiscal Transparency Code (FTC).