I. Budget reliability
Scores by Dimension
Overall Indicator Score
1. Aggregate expenditure outturn
B
Notes:
1.1 Aggregate expenditure outturn
B
Notes:
The government’s aggregate expenditure outturn amounted to 112.7% of the initially approved budget parameters in 2018, 97.5% in 2019, and 93.7% in 2020.
2. Expenditure composition outturn
D+
Notes:
2.1 Expenditure composition outturn by function
D
Notes:
Based on data from 2018-2020, analysis of expenditure composition by functional classification suggests that the deviation from the original plan exceeded 15% in two of the last three years.
2.2 Expenditure composition outturn by economic type
D
Notes:
Based on data from 2018-2020, analysis of expenditure composition by economic classification suggests that the deviation from the original plan exceeded 15% in the past three years.
2.3 Expenditure from contingency reserves
A
Notes:
Expenditure outturn from contingency reserves comprised on average 1.6% of total government expenditure in 2018-2020.
Notes:
3.1 Aggregate revenue outturn
A
Notes:
Revenue outturn was between 98.2% and 105.3% in the last three years (2018-2020), compared to original forecasts.
3.2 Revenue composition outturn
B
Notes:
The variance in revenue composition was less than 10% in two of the last three years (namely, 2019 and 2020).
II. Transparency of public finances
Scores by Dimension
Overall Indicator Score
4. Budget classification
B
Notes:
4.1 Budget classification
B
Notes:
The budget classification breaks down revenues and expenditures are aligned with GFS 2001, but program classification is only being piloted since 2019 and has not yet been rolled out across the whole government sector.
Notes:
5.1 Budget documentation
A
Notes:
Budget documentation fulfills 10 elements (from the table below), including all four basic elements that should go into the budget proposal.
6. Central government operations outside financial reports
A
Notes:
6.1 Expenditure outside financial reports
A
Notes:
There are no known expenditures outside consolidated financial reports of the Central Treasury of the MoF. Expenditure outside government financial reports comprises less than 1% of total government expenditure.
6.2 Revenue outside financial reports
A
Notes:
All revenue categories are reported in the MoF’s financial reports. Revenue outside financial reports comprises less than 1% of total government revenue.
6.3 Financial reports of extrabudgetary units
A
Notes:
There are no extrabudgetary units (separately from public corporations) that are not fully covered by the general government budget. Financial reports are submitted to the government annually within three months of the end of the fiscal year.
7. Transfers to subnational governments
C+
Notes:
7.1 System for allocating transfers
D
Notes:
Although the MoF discloses information on the amounts budgeted and transferred to subnational governments, the allocation of subventions (comprising more than 95% of all IGFTs) does not currently follow a rules-based approach.
7.2 Timeliness of information on transfers
A
Notes:
Detailed information on IGFTs is provided to SNGs on a timely basis (in line with the regular budget calendar), is generally adhered to, and provides required information for SNGs several months in advance of the new financial year (often in August).
8. Performance information for service delivery
D
Notes:
8.1 Performance plans for service delivery
D
Notes:
Performance budgeting has not been introduced, although some elements were rolled out with program budgeting reform. Most ministries, departments and agencies (MDAs) either do not have and/or do not publish their performance information.
8.2 Performance achieved for service delivery
D
Notes:
Most ministries, departments and agencies (MDAs) do not publish their performance information, including on outputs and outcomes. Outcome-level performance indicators are often not costed and thus not available.
8.3 Resources received by service delivery units
D
Notes:
Resources received by service delivery units (SDUs) are duly recorded at SDU level, but are not collected and recorded (i.e. consolidated) at the central government level by
8.4 Performance evaluation for service delivery
D
Notes:
Independent evaluations of the efficiency and effectiveness of service delivery have not been carried out by the government.
9. Public access to fiscal information
B
Notes:
9.1 Public access to fiscal information
B
Notes:
The government makes available to the public 7 (out of 9) elements, including at least 4 (out of 5) basic elements, in accordance with the specified timeframes.
III. Management of assets and liabilities
Scores by Dimension
Overall Indicator Score
10. Fiscal risk reporting
D+
Notes:
10.1 Monitoring of public corporations
D
Notes:
Although not all financial statements are externally audited, they are received by the MoF within 9 months of the end of the fiscal year and most of them are publicly available. However, the government receives financial reports from only a few SOEs (about 3.6% of all SOEs in the country). Fiscal
10.2 Monitoring of subnational governments
C
Notes:
Although financial statements of subnational municipalities are published within 9 months of the end of the fiscal year in local media outlets and are audited by the Chamber of Accounts, not all audited financial statements are publicly accessible.
10.3 Contingent liabilities and other fiscal risks
C
Notes:
The MoF quantifies some significant contingent liabilities (i.e. those with the potential cost in excess of 0.5% of total government expenditure) in its annual financial reports and fiscal risk reporting.
11. Public investment management
C+
Notes:
11.1 Economic analysis of investment proposals
C
Notes:
Despite guidance on economic appraisal of investment projects that was put in place in 2018, economic analysis is only conducted to assess some major investment projects. Economic appraisal reports or feasibility studies are not always published.
11.2 Investment project selection
B
Notes:
Prior to their submission to the MoF, most major investment projects are prioritized by the Ministry of Economic Development and Trade (MoEDT) on the basis of standard selection criteria.
11.3 Investment project costing
C
Notes:
Five-year projections of the total investment cost of major investment projects are included in the budget documents but presented in different format which differs from applied budget classifications.
11.4 Investment project monitoring
C
Notes:
MoEDT, SCISPM and MoF undertake monitoring of major investment projects against the disbursement profile and physical progress. Although standard procedures and rules are in place, performance information or monitoring reports are not publicly available.
12. Public asset management
C
Notes:
12.1 Financial asset monitoring
C
Notes:
The MoF maintains a record of the majority of financial assets in the Treasury’s financial statements, but information on the performance of financial assets is not routinely published on the annual basis.
12.2 Nonfinancial asset monitoring
C
Notes:
The government maintains three separate registers of its holdings of fixed assets in the SCISPM (movable and immovable property), State Committee for Land Management (land cadaster), and the Main Geology Department under the Government (subsoil resources), but none of them are published or have universal coverage.
12.3 Transparency of asset disposal
C
Notes:
Procedures and rules for the transfer or disposal of non-financial assets are established, but only limited basic information (original purchase cost and disposal value) on the transfers and disposals of financial and non-financial assets is provided in the budget proposal.
Notes:
13.1 Recording and reporting of debt and guarantees
B
Notes:
Despite the outdated DTS, debt records are well-maintained, complete, and accurate. Domestic, foreign, and guaranteed debt information is reconciled quarterly with Treasury and creditors, and detailed consolidated annual public debt performance reporting that covers debt service, stock, and operations is publicly available.
13.2 Approval of debt and guarantees
B
Notes:
There are two central government entities – namely, the MoF and the National Bank of Tajikistan (NBT) – that are authorized and mandated to borrow and issue new debt on behalf of the GoRT.
13.3 Debt management strategy
A
Notes:
The MoF produces and publishes a comprehensive three-year debt management strategy. The current Public Debt Management Strategy for 2021-2023 includes all required key indicators, while debt reporting is provided to the Parliament on the annual basis and is consistent with the GoRT’s mid-term debt management strategy.
IV. Policy-based fiscal strategy and budgeting
Scores by Dimension
Overall Indicator Score
14. Macroeconomic and fiscal forecasting
B
Notes:
14.1 Macroeconomic forecasts
B
Notes:
MoEDT and NBT prepare macroeconomic forecasts, which are included in the annual budget proposal, which is sub-mitted by the MoF to the GoRT and the Parliament. The forecasts cover a three-year period and are updated at least once a year.
Notes:
The MoF routinely prepares three-year fiscal forecasts, which (together with underlying assumptions) are included in the annual budget proposal submitted to the Parliament. Explanation of the main differences from the past forecasts are not included or very limited.
14.3 Macrofiscal sensitivity analysis
C
Notes:
Macro-fiscal sensitivity analysis is very limited and is only undertaken by the MoEDT (with respect to macroeconomic parameters) and the NBT (monetary parameters). The MoF does not have the capacity or assigned personnel to do a qualitative assessment of the impact of alternative macroeconomic assumptions.
Notes:
15.1 Fiscal impact of policy proposals
D*
Notes:
Fiscal impact assessments were reportedly produced (for all proposed changes in revenue and expenditure policy) and submitted by the MoF to the GoRT and the Parliament, but they only cover a single year and were not publicly accessible.
15.2 Fiscal strategy adoption
A
Notes:
The PFM Reform Strategy (PFMRS) has been developed and endorsed via the President’s Decree in January 2020, and is supported by a medium-term operational framework. The PFMRS is published and, through its operational framework, includes time-bound quantitative and qualitative targets for a three-year period.
15.3 Reporting on fiscal outcomes
A
Notes:
Annual internal progress report is currently being prepared by the MoF (against the parameters and targets in the PFMRS and its operational framework) and will be submitted to the GoRT in Q1-2022. Preparation of last year’s report was disrupted by COVID-19 pandemic.
16. Medium-term perspective in expenditure budgeting
C
Notes:
16.1 Medium-term expenditure estimates
B
Notes:
The annual budget proposal and, subsequently, annual budget legislation presents medium-term expenditure estimates broken down by economic and functional classifications (high-level lines), and is shown by program classification as an annex to the budget proposal.
16.2 Medium-term expenditure ceilings
C
Notes:
While sectoral expenditure ceilings are formulated for a three-year period and approved by the GoRT, expenditure ceilings for each MABA are not produced or disclosed until the second phase of the budget formulation process (around May-June).
16.3 Alignment of strategic plans and medium-term budgets
C
Notes:
Only a small proportion of all ministries, departments and agencies (MDAs) at the central government level have comprehensive, time-bound, and adequately costed medium-term strategic plans, which are aligned with the annual budget estimates.
16.4 Consistency of budgets with previous year’s estimates
D
Notes:
The budget documents, which are submitted by the MoF to the GoRT and the Parliament, provide limited explanation of some of the changes to expenditure estimates between the second year of the last medium-term budget and the first year of the current medium-term budget at the aggregate level.
17. Budget preparation process
B
Notes:
Notes:
A clear annual budget calendar exists and is supported by national legislation and regulatory framework. The budget calendar is largely adhered to and allows budgetary units in total about 10 weeks for the preparation of respective budget proposals.
17.2 Guidance on budget preparation
C
Notes:
Budget circulars (i.e. instructions) for Phase I and Phase II of the budget preparation process are issued to budgetary units and are generally adhered to, but they do not include medium-term expenditure ceilings at sector or MABA level.
17.3 Budget submission to the legislature
A
Notes:
Annual budget proposal is submitted for scrutiny/review to the Parliament in line with endorsed deadlines. No delays or violations to these requirements were observed.
18. Legislative scrutiny of budgets
B+
Notes:
18.1 Scope of budget scrutiny
B
Notes:
The Parliamentary Committee on Economy and Finance and the Members of Parliament (MPs) review fiscal policy and aggregate annual parameters, but the scrutiny of medium-term fiscal estimates and medium-term priorities is limited.
18.2 Legislative procedures for budget scrutiny
B
Notes:
Legislative procedures to review budget proposals are embedded in the Parliamentary Provisions and national PFM legislation. The Parliamentary Committee on Economy and Finance internally meets with other committees and discusses the budget proposals, but arrangements for public consultations are weakly followed.
18.3 Timing of budget approval
A
Notes:
In the last three years, the Parliament approved the annual budget proposal and medium-term estimates at least one month before the start of the new year.
18.4 Rules for budget adjustment by the executive
A
Notes:
Clear fiscal rules are in place for in-year budget adjustments and in 2020 they were fully adhered to by all budgetary units across the government sector.
V. Predictability and control in budget execution
Scores by Dimension
Overall Indicator Score
19. Revenue administration
B
Notes:
19.1 Rights and obligations for revenue measures
A
Notes:
The Tax Committee and the Customs Service use multiple channels (e.g. local mass media, corporate websites and through web-based information portals, information sessions with taxpayers, etc.) to provide taxpayers with access to comprehensive and up-to-date information on the main revenue obligation areas and on rights.
19.2 Revenue risk management
C
Notes:
Risk-based approach has been introduced into inspections of the taxpayers by the Tax Committee, including a structured approach for assessing and prioritizing compliance risks for some categories of government revenue for large revenue payers, but the new IT module has not been fully operationalized yet.
19.3 Revenue audit and investigation
D
Notes:
Audits and fraud investigations are embedded in the Tax Committee’s and the Customs Service’s routine audit planning and implementation. Audit plans are completed in full and on time, but neither entity has a compliance improvement plan, which is used as the basis for audit and fraud investigation planning.
19.4 Revenue arrears monitoring
A
Notes:
In 2020, the total amount of outstanding tax debt in relation to tax receipts (i.e. total revenue collection) was 8.3%, and the revenue arrears older than 12 months were equivalent to 17.2% of total revenue arrears for the year.
20. Accounting for revenue
A
Notes:
20.1 Information on revenue collections
A
Notes:
The Ministry of Finance obtains monthly revenue data from other central government entities (e.g. the Tax Committee), broken down by revenue type and consolidated into a report. Collected data corresponds to all central government revenue.
20.2 Transfer of revenue collections
A
Notes:
The Tax Committee, the Customs Committee, and SSB ‘Amonatbank’ transfer the revenue collections directly into accounts of the Central Treasury of the Ministry of Finance through the treasury single account (TSA).
20.3 Revenue accounts reconciliation
A
Notes:
The Ministry of Finance performs reconciliations of all government revenues on a monthly basis (with the Tax Committee and the Customs Committee) and on a daily basis (with the National Bank of Tajikistan).
21. Predictability of in-year resource allocation
C+
Notes:
21.1 Consolidation of cash balances
C
Notes:
All bank and cash balances are consolidated by the Central Treasury on a daily basis. The ASIP manages its accounts separately and submits its monthly report to the Treasury.
21.2 Cash forecasting and monitoring
C
Notes:
Cash flow forecasts are prepared for each next financial year by the Central Treasury, including consolidated cash plans covering the general government budget, but cash plans are not updated on at least monthly or quarterly basis.
21.3 Information on commitment ceilings
A
Notes:
Budget departments and divisions have good information on annual spending (or commitment) ceilings for the next 12 months, with quarterly breakdowns.
21.4 Significance of in-year budget adjustments
C
Notes:
In general, annual adjustments to the expenditure side of the general government budget continue to take place in the process of its execution.
22. Expenditure arrears
C+
Notes:
22.1 Stock of expenditure arrears
B
Notes:
The stock of expenditure arrears amounted to 2.3% of total expenditure in 2020, 2.5% in 2019, and 1.6% in 2018 respectively.
22.2 Expenditure arrears monitoring
C
Notes:
Data on the amount and composition of expenditure arrears is generated annually at the end of each year.
Notes:
23.1 Integration of payroll and personnel records
B
Notes:
Budget organizations provide on a monthly basis full documentation made to personnel records, which are checked by the Central Treasury against the previous month’s payroll data. Hiring and promotion is performed within approved personnel records, budget allocations, and staff positions across the government sector.
23.2 Management of payroll changes
A
Notes:
Payroll changes are adequately regulated, administered, and overseen by the Agency for Civil Service (ACS). Retrospective changes/adjustments are made in less than 3% of the total wage bill.
23.3 Internal control of payroll
C
Notes:
Authority to change personnel records and payroll is restricted, but integrity of data is constrained by the lack of integration between HRMIS and TFMIS.
Notes:
External audit of the payroll covering all central government entities was carried out at least once in the past three years.
Notes:
24.1 Procurement monitoring
B
Notes:
Relevant databases, registers and records are maintained and regularly updated by the APPGWS. They are routinely audited by the Chamber of Accounts, and the data are accurate and complete for most procurement methods.
24.2 Procurement methods
A
Notes:
In 2021, almost 98.3% of all procurement was conducted through competitive methods.
24.3 Public access to procurement information
B
Notes:
At least four out of six elements of critical procurement information are available in the public domain, particularly on the website of APPGWS and e-GP website.
24.4 Procurement complaints management
D
Notes:
The procurement complaints management system is at its early stages of development and, until the new public procurement legislation is in place, is not independent.
25. Internal controls on nonsalary expenditure
A
Notes:
25.1 Segregation of duties
A
Notes:
National legislation and regulatory environment, particularly with respect to internal controls and treasury operations, demonstrates that appropriate segregation of duties is prescribed throughout the expenditure process, and that responsibilities are clearly laid down.
25.2 Effectiveness of expenditure commitment controls
B
Notes:
Expenditure commitment controls are in place and effectively limit commitments to projected cash availability and approved budget allocations for most types of expenditure (83.5% of total expenditure).
25.3 Compliance with payment rules and procedures
A
Notes:
All payments are compliant with regular payment procedures. All exceptions are properly authorized in advance and justified.
Notes:
26.1 Coverage of internal audit
B
Notes:
Internal audit functions are entrusted to 10 central government entities, while other public sector entities are covered by internal audit through the Ministry of Finance’s internal audit department. Internal audit is operational for entities accounting for most government revenue and most government expenditure.
26.2 Nature of audits and standards applied
C
Notes:
Internal audit activities are based on international standards, but primarily focused on financial compliance.
26.3 Implementation of internal audits and reporting
B
Notes:
Annual audit programs exist and are mandatory for all internal audit units across the government sector. Most programed audits are completed.
26.4 Response to internal audits
B
Notes:
Management of most audited public-sector entities provides a full response to audit recommendations. This is performed within 12 months of the report being produced.
VI. Accounting and reporting
Scores by Dimension
Overall Indicator Score
27. Financial data integrity
B+
Notes:
27.1 Bank account reconciliation
A
Notes:
All accounts of the central government budget are reconciled on a daily basis at aggregate and detailed levels.
Notes:
Within the TSA, there is an account intended for crediting unclear amounts. Reconciliations are performed before the end of each month and, once clarified, funds are deposited to the corresponding TSA account and the suspense account Is duly cleared.
Notes:
Reconciliation of advance accounts is performed throughout the year. The vast majority of advance accounts are cleared in a timely manner.
27.4 Financial data integrity processes
A
Notes:
Access and changes to records are limited and recorded. In the organizational structure of the Ministry of Finance, there is a SUE responsible for checking the integrity of financial data, but it currently does not have a separate unit responsible for ensuring data integrity.
28. In-year budget reports
C+
Notes:
28.1 Coverage and comparability of reports
C
Notes:
In-year budget reports are produced by the Ministry of Finance on a monthly, quarterly, and semi-annual basis and in a format, but does not allow direct comparability and alignment of performance with plan for the main administrative units (i.e. MABAs).
28.2 Timing of in-year budget reports
B
Notes:
In-year budget reports are prepared on a monthly, quarterly, and semi-annual basis within one month from the end of each period.
28.3 Accuracy of in-year budget reports
A
Notes:
There are no concerns regarding data accuracy and in-year reports capture data at both commitment and payment stage, and are accompanied by explanatory notes in line with financial reporting requirements.
29. Annual financial reports
D+
Notes:
29.1 Completeness of annual financial reports
B
Notes:
The consolidated financial statement is prepared annually and covers the majority of assets and liabilities (such as on revenue, expenditure, financial and nonfinancial assets, liabilities, guarantees, and long-term obligations), except the Public Investment Program (PIP) and financial performance of state-owned enterprises. These reports are comparable with the approved budget.
29.2 Submission of reports for external audit
B
Notes:
The Ministry of Finance routinely submits consolidated annual financial statements to the Chamber of Accounts within six months of the end of the fiscal year.
29.3 Accounting standards
D
Notes:
The 12 approved accounting standards are applied to all financial statements, however, the standard on consolidation is not fully adhered to. The national IPSAS-compliant standards that are used in preparing annual financial reports are publicly disclosed.
VII. External scrutiny and audit
Scores by Dimension
Overall Indicator Score
Notes:
30.1 Audit coverage and standards
C
Notes:
The Chamber of Accounts has audited financial reports of the majority of central government entities, accounting for 64.1% of total government expenditure and revenue during 2018-2020. Audits covered revenue, expenditure, and debt, highlighting relevant significant issues, and were based on national ISSAI-compliant standards.
30.2 Submission of audit reports to the legislature
A
Notes:
The audit statements of the Chamber of Accounts on state budget execution were submitted to the legislature within three months from the date of receipt of budget execution reports from the Ministry of Finance.
30.3 External audit follow-up
B
Notes:
Audited institutions formally, comprehensively and in a timely manner took appropriate measures based on the CoA recommendations.
30.4 Supreme Audit Institution independence
D
Notes:
CoA is directly accountable to the Parliament and the President as a head of state. However, the Chamber of Accounts is not fully independent from a financial point of view (in particular, in terms of setting the size of official salaries, as well as the conditions and procedure for paying salaries to the chairman, his deputy, and chief auditors).CoA auditors have full access to all financial documents necessary to conduct a comprehensive audit.
31. Legislative scrutiny of audit reports
C+
Notes:
31.1 Timing of audit report scrutiny
A
Notes:
Scrutiny of audited reports took less than three months from the date of receipt of the financial audit reports by the legislature.
31.2 Hearings on audit findings
C
Notes:
Hearings on audit opinions are limited to state budget execution with participation of the Committee on Economic and Finance, MoF, and CoA representatives.
31.3 Recommendations on audit by the legislature
B
Notes:
Recommendations are made and followed up on a regular basis.
31.4 Transparency of legislative scrutiny of audit reports
D
Notes:
Audit reports are limited to MPs, and not available to the public. The public is not invited to or informed about Parliamentary hearings on external audit reports.