policy is as follows:
(i) The assessors may start with the documents submitted to the legislature during the budget process for the last three completed years. The documents submitted usually present the revenue and expenditure policy initiatives.
(ii) If there is a limited number of proposed changes, assessors may consider them all. They will then check whether the estimates of the fiscal impact for 90% in value have been prepared for the budget year and the following two fiscal years.
(iii) If there are many proposed changes, assessors may establish a sample: they would need to focus on proposals with the most significant and direct impact on revenue or expenditure. They will then proceed as described under (ii).
(iv) Documents submitted to the legislature may also summarize all changes in revenue and expenditure policy that were made since the last budget submission. Note that assessors are not expected to include those changes in the assessment, only to comment on them.
(v) When there are no estimates of revenue or expenditure policy changes submitted to the legislature, assessors will need to check whether policy proposals were developed and
if so whether estimates of the fiscal impact of those proposals were prepared or not. When estimates are prepared by the government but not transmitted to the legislature, the assessors will proceed as described under (ii) and (iii). The main sources of information would be the Ministry of Finance when they prepare the fiscal impact of policy proposals or consolidate when individual budgetary units prepare their estimates for their respective policy areas.
15.1:8. Assessors may refer to documents presenting the medium-term budget estimates as described under PI-16 and the projections of the total life-cycle cost of major projects as described under PI-11.
15.1:9. The materiality ‘all’ would need to be met for both revenue and expenditure in each of the last three years to score A, B or C. In addition, data should be available for T, T+1, and T+2 for both revenue and expenditure to score A or B. 15.1:10. If no policy changes have been proposed (both revenue and expenditure), then this dimension should be rated NA.
15.1:11. Assessors may wish to prepare a check-list (see table 15.2 for an example) and/or review a sample based on the largest ministries.
Table 15.2: Fiscal impact of policy proposals submitted during budget preparation
| Ministry | Name of proposal | Fiscal impact ($) | Revenue/Cost information |
|---|---|---|---|
| Revenue policy proposals | Do the proposals present total revenues to be collected for all budget years | ||
| Sub-total | |||
| Expenditure policy proposals | Do the proposals present full costs (including current costs of capital projects) for all budget years | ||
| Sub-total | |||
| TOTAL | |||
PEFA Handbook Volume 1: The PEFA Assessment Process – Planning, Managing and Using PEFA
