How Civil Society can Make Tax Systems More Equitable

Photo: Invest in Minnesota/Minnesota Budget Project
Posted by Paolo de Renzio, Jason Lakin and Fariya Mohiuddin^[1]

Domestic revenue mobilization (DRM) is fundamental to governments’ strategies to finance essential development goals. Yet, if taxation is not equitable, intensifying domestic revenue collection can undermine efforts to tackle poverty and inequality. Without a strong grass-roots voice in tax, progressive tax reform may falter.  Civic actors are critical stakeholders in building broad support for social bargains in which governments supply citizens with quality services in exchange for tax compliance.  The same actors can also provide muscle to help take on powerful interests that oppose redistributive tax policy.

Modernizing Cash Management in Mali

Posted by Leonard Kobou Djongue, Serge Ramangalahy and Claude Wendling^[1]

Implementing a Treasury Single Account (TSA) is a major instrument for the modernization of cash management. The centralization of public funds in a single process indeed aims at enabling the State to fulfil its financial commitments at every moment and at the lowest possible cost. In this respect, avoiding scattered public resources and pockets of “idle liquidity” should be high priorities for the Ministry of Finance.

La modernisation de la gestion de la trésorerie au Mali

Préparé par Léonard Kobou Djongue, Serge Ramangalahy et Claude Wendling^[1]

La mise en œuvre du Compte unique du Trésor (CUT) constitue un enjeu majeur dans la modernisation de la gestion de la trésorerie de l’Etat. En effet, la centralisation des fonds publics vise à permettre à l’Etat de faire face, à tout instant, à ses engagements, et ce, au moindre cout. A ce titre, la lutte contre l’éparpillement des ressources publiques et contre la constitution de poches de « liquidités oisives » sont des priorités de premier rang pour le ministère de l’Economie et des Finances (MEF).

Improving Fiscal Transparency in Francophone Africa

    

Posted by Bruno Imbert,^[1] Serge Ramangalahy,^[2] Claire Schouten^[3] and Alex Kreko.^[4]

Fiscal transparency is always important as an aid to fiscal policy and good budgeting but has becomes critical during the COVID-19 pandemic because of high levels of public spending and debt, to avoid misuse of scarce public funds, and to enhance accountability.

Améliorer la transparence budgétaire en Afrique francophone

     
Préparé par Bruno Imbert,^[1] Serge Ramangalahy,^[2] Claire Schouten^[3] et Alex Kreko.^[4]

La transparence budgétaire est importante pour renforcer la politique budgétaire, mais le contexte de la pandémie de COVID-19 l’a rendue cruciale en raison des niveaux élevés de dépenses et de dette publiques, afin d’éviter l'utilisation abusive des fonds publics et pour renforcer la responsabilisation des décideurs.

Public Financial Management in the Post-COVID World

Posted by Srinivas Gurazada^[1]

The Public Expenditure and Financial Accountability (PEFA) framework has been a preferred methodology for assessing progress on PFM reforms globally. Since I became the Head of PEFA Secretariat a few months ago, I have been reflecting on the need to build on its unique strengths and prepare a PFM agenda in the post COVID-19 world.

Digital Media, Transparency and the War Against Corruption

Posted by David Fellows and John Leonardo^[1]

Corruption is highly damaging to economic and social life through misappropriation of public funds, restriction of open market activity, favouritism towards families of those in power, and the many detrimental effects of rent seeking. In this piece we review evidence for the power of transparency to reduce corruption and improve economic performance. We then consider the increasing relevance of digital media, particularly social media, to the transparency agenda and how its application can be encouraged.

Top 10 PFM Blog Posts of 2020

Posted by Richard Allen, Teresa Curristine, and Laura Torrent^[1]

2020 has been an exceptional year in many ways, not least for the PFM blog. There was a 45% increase in the number of blog articles posted in 2020, up from 76 the previous year to 110 in 2020. A little over half of the articles were on COVID-related themes. More than 220 authors contributed to these articles, of which 107 (48%) were from organizations outside the IMF, up from the 40% in 2019.

Two New IMF How-to-Notes on Cash Management

By Emre Balibek, Yasemin Hurcan and Sandeep Saxena^[1]

Managing cash balances is central to the government’s overall approach to cash management. Cash managers seek to maintain an optimal balance in the treasury single account (TSA) to ensure there is adequate liquidity to meet the government’s financial obliga­tions as they fall due. An adequate cash balance provides a cushion against cash flow volatility, especially in developing countries where short-term financing options and market access are limited. Liquidity, however, comes at a cost. Gov­ernments can reduce the cost of maintaining liquidity by proactively managing their cash balance and prudently investing any excess liquidity.