PI-20. ACCOUNTING FOR REVENUE
ABOUT THE INDICATOR
This indicator assesses procedures for recording and reporting revenue collections, consolidating revenues collected, and reconciling tax revenue accounts. It covers both tax and nontax revenues collected by the central government. This indicator contains the following three dimensions and uses M1 (WL) for aggregating dimension scores:
- Dimension 20.1. Information on revenue collections
- Dimension 20.2. Transfer of revenue collections
- Dimension 20.3. Revenue accounts reconciliation
IMPACT ON BUDGETARY OUTCOMES
Accurate recording and reporting of tax and nontax revenue collections is important to ensure all revenue is collected in accordance with relevant laws. Compliance with tax laws strengthens both aggregate fiscal discipline and administrative capacity to allocate budget resources to strategic priorities. Timely and accurate information on revenue helps the government monitor budget implementation and the management of cash, debt, and investments. This helps to keep down transaction costs and ensure that
funds are used most effectively in achieving allocation and service delivery objectives.
INDICATOR MEASUREMENT GUIDANCE
20:1. This indicator complements information in PI-3, PI-14, PI-15, PI-16, and PI-19, in particular to provide a general impression of the way in which revenues are administered in the country.
20:2. In order to evidence the materiality used to assess all dimensions of PI-20, assessors may find it useful to prepare a table containing information on collected revenue broken down by collecting entities and categories of revenue, as suggested in Table 19.1. 20:3. Indicator PI-20 does not cover grants from development partners.
Dimension 20.1. Information on revenue collections
DIMENSION MEASUREMENT GUIDANCE
20.1:1. This dimension assesses the extent to which a central ministry, i.e., MoF or a body with similar responsibilities, coordinates revenue administration activities and collects, accounts for, and reports timely information on collected revenue. 20.1:2. The report should indicate (i) whether all revenue types are covered and the data are complete, (ii) the extent to which data are broken down by revenue type and period of collection, and (iii) whether data on collected revenue are consolidated into a report.
Dimension 20.1. Scoring
|Score||Minimum requirements for scores|
|A||A central agency obtains revenue data at least monthly from entities collecting all central government revenue. This information is broken down by revenue type and is consolidated into a report.|
|B||A central agency obtains revenue data at least monthly from entities collecting most central government revenue. This information is broken down by revenue type and is consolidated into a report.|
|C||A central agency obtains revenue data at least monthly from entities collecting the majority of central government revenue and consolidates the data.|
|D||Performance is less than required for a C score.|
Pillar Five: Predictability and Control in Budget Execution