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 |