1.3 GOVERNANCE AND INSTITUTIONS

Briefly describe the main characteristics of the political system, including key institutions and how they are structured: the existence of a constitution and when it was established; the overall political structure (confederation, federation, unitary state, etc.); features of the legislature, and how legislators gain seats (e.g., by direct/indirect election, by executive appointment); the existence and powers of state audits; the basis of government and its main powers and authority; and the relationship of the executive to the judiciary.

The concept note for SNG should provide information about the decentralization system, i.e., to briefly describe the main characteristics of the decentralization system and intergovernmental fiscal relations in the country: the overall political structure (e.g., confederation, federation, unitary state.); number and names of subnational government tiers. Briefly list the main functional responsibilities (e.g., primary education, health, water sanitation, street lighting) which are devolved and delegated to the subnational governments or shared with a higher level of government. List the functions (e.g., revenue collection, payment, procurement, investment) that are performed by the SNG, those that are performed by CG and those for which responsibility is shared. Provide information on fiscal autonomy, right to borrow, restriction of deficit, and autonomy to hire staff.

2. History of public financial management (PFM) reform (Recommended length: no more than 500 words.)

Under the subheadings below, outline the recent history of PFM reform, including all previous PEFA assessments, other PFM diagnostics, PFM reform initiatives and what they have achieved to date, international cooperation activities, and PFM reform monitoring and evaluation arrangements.

2.1 PREVIOUS PEFA ASSESSMENT(S) AND OTHER PFM DIAGNOSTICS

Briefly describe the timing and scope of any previous PEFA assessment(s) and other PFM diagnostics, and summarize their main findings. For example, which years did the assessments cover, and what were the main strengths and weaknesses they identified?

The SNG concept note should make reference to any PEFA at national and subnational level and PFM diagnostics relative to fiscal decentralization and PFM and summarize their findings.

2.2 PFM REFORM INITIATIVES

Briefly describe the history of PFM reform and its current status (e.g., PFM action plans), identifying the main areas of emphasis (e.g., tax administration, cash management, procurement). Include information on recent and ongoing activities, and the monitoring arrangements of the government and development partners. Identify the nature of any international cooperation and support initiatives (e.g., from the International Monetary Fund, IMF), such as those involving budget support, technical assistance and sector support.

For SNG, the concept note is required to briefly describe the history of fiscal decentralization and local PFM reforms.