Consolidating Georgia’s Treasury Single Account (TSA)

Posted by Nino Tchelishvili[1]

Until 2015, self-governing cities and municipalities in Georgia were managing their budgets using commercial bank accounts. These arrangements were seen as a proof of the independence of these self-governing entities, which is guaranteed by law. Public Law Entities (PLEs) founded by central or local governments, which were allowed to undertake economic activities and generate their own revenues, also held accounts in commercial banks. Consolidation of financial reports by municipalities and PLEs took place at the Treasury. However, the quality, timeliness and consistency of this information was constantly questioned. The key problem identified was the poor quality - or even absence - of financial management information systems in municipalities and most PLEs.

Projecting Expenditure Baselines in Barcelona

Posted by Jordi Baños-Rovira[1]

In recent years, Barcelona City Council has introduced a range of budget reforms to improve the efficiency of resource allocation and operational management[2]. In particular, a performance-based budgeting system (called the “Executive Budget’) has been developed, linked to the goals set in the Government’s Development Plan[3].

A key element of this new budget preparation process is the development of baseline projections of expenditure, which estimate the spending required to maintain current policies (or levels of service) for the next year, and to comply with already approved multi-year commitments. Budget requests by departments thus comprise two elements: the spending baselines, and additional resources required to finance new projects and services, and other policy changes.

Article by CABRI on the Use of Country PFM Systems in Africa

Posted by PFM Blog Administrator

A recent blog post by Neil Cole of CABRI discusses the use of country systems in Africa. The post outlines several cases where development objectives are being achieved using local country systems, and how to strengthen these systems to make more efficient use of aid resources. The increased use of country systems has raised the capacity of governments in areas such as PFM, cross-governmental organization, and the management of donor programs.

CABRI is the Collaborative Africa Budget Reform Initiative and a peer-learning and exchange network for senior budget officials working in African Ministries of Finance/Planning.

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.

 

More Cheeseparing? Increasing Public Expenditure Efficiency in France

 

 

 

 

 

 

 

 

Posted by Maximilien Queyranne and Jean-Jacques Hallaert¹

Jean-Jacques Hallaert and Maximilien Queyranne recently published an IMF Working Paper on France’s spending policy and reforms. They identify areas where there is scope for increasing expenditure efficiency, while maintaining or even improving social and economic outcomes. 

At 57½ percent of GDP, public expenditure in France is among the highest in the world. Spending has outpaced GDP growth for over three decades. Notwithstanding successive tax increases, France has experienced chronically large fiscal deficits and a growing public debt burden, approaching 100 percent of GDP.

An Innovative Approach to Supporting Liberia’s PFM Reforms

Posted by Lesley Fisher[1]

The IMF’s traditional approach to providing technical assistance (TA) has usually involved staff and experts traveling to a country, discussing various issues with government counterparts, and leaving a report, including recommendations, for the country to implement. This approach has been used extensively in Liberia since the mid-2000s and has been complemented by two resident experts, and numerous short-term experts, providing hands-on support in implementing the recommendations of the headquarters-based missions.

Challenges of Developing MTEFs and PBB in East Africa

Posted by Kubai Khasiani[1]

The IMF’s Regional Technical Assistance Center for East Africa (AFRITAC East, AFE) organized a regional PFM workshop on “Strengthening Budgetary Institutions” in Dar es Salaam, Tanzania from 22-25 February 2016. The event was attended by 26 government officials from Eritrea, Ethiopia, Kenya, Malawi, and Tanzania. The workshop reviewed the performance of AFE countries in introducing Medium-Term Expenditure Frameworks (MTEFs) and program-based budgets (PBB), and the challenges that remain. The discussions were facilitated by Richard Allen, Florence Kuteesa and Phyllis Makau (FAD experts).