Table 2.10 Illustration of key elements of a PFM reform action plan using the handbook’s example
Desired outcome PFM reforms Key tasks and actions Responsibility Time frame Key milestone and outputs Capacity development needs Cost and funding source

Strengthen fiscal discipline through greater adherence to fiscal targets

Improve the predictability of budget allocations to service delivery ministries

Strengthen macrofiscal forecasting Establish a macroeconomic and fiscal forecasting unit Human resources director, ministry of finance December 2019 Recruit staff for macroeconomic and fiscal forecasting unit by July 2019 Technical support and training staff of macroeconomic and fiscal forecasting unit

Cost of two new staff (Budget) = $80,000

Technical support (DP cost) = $40,000

Implement cash-flow forecasting Design a medium-term fiscal framework (MTFF) Budget director, ministry of finance August 2020

Develop macroeconomic model used for budget preparation by July 2020

Prepare medium-term macrofiscal forecasts based on new model by August 2020

Prepare and publish the MTFF by August 2020

Technical support and training staff of macroeconomic and fiscal forecasting unit Technical support (DP cost) = $35,000
Develop and distribute a circular advising ministries to prepare monthly cash-flow forecasts Accountant general, ministry of finance December 2019 Distribute the budget call circular by July 1, 2019 Not required No added cost
Require ministries to update cash-flow forecasts each month Accountant general, ministry of finance January 2020 Update cash-flow forecasts for the 2020 budget year Not required No added cost
Update budget processes and procedures Revise the budget calendar Budget director, ministry of finance March 2019 Obtain cabinet approval of the revised budget calendar Technical support and training for staff of budget department Technical support (DP cost) = $20,000
Revise the budget instructions

Heads of line ministries

Budget director, ministry of finance

June 2019

Revise the budget instructions setting out:

(a) Budget timetable

(b) Aggregate and ministerial budget ceilings

(c) Instructions for preparing detailed estimates

Not required No added cost
Update financial management legislation or regulations to strengthen the legal requirements for adherence to aggregate and ministerial budget ceilings

Heads of line ministries

Budget director, ministry of finance

June 2021

Draft revised financial management legislation and regulations by June 2020

Obtain parliamentary approval of the revised financial management legislation by June 2021

Technical assistance support for drafting new financial management legislation

Staffing costs (Budget) = $75,000

Technical support (DP cost) = $20,000