HAS REFORM HAD THE DESIRED IMPACT ON THE IDENTIFIED PROBLEM?
The final question is whether the reform has had the desired impact on the identified problem. While specific tasks and deliverables should be monitored closely, the reforms should be evaluated to determine whether they have had the desired impact on PFM weaknesses and to address any broader policy problems that may have been the initial catalyst for reform. It is important to look beyond just the PFM impact—in terms of not only the form and functioning of the PFM institutions and systems, but also the impact of improved PFM performance on three key budgetary outcomes: aggregate fiscal discipline, strategic allocation of resources, and efficient service delivery.
In the matrix example, the government would evaluate how implementation of the three reform priorities has affected the desired outcome: aggregate fiscal discipline. The evaluation may show that implementation has been successful and had an impact, but that additional reforms are required to strengthen fiscal discipline more. Box 2.2 discusses the balance to be struck between establishing the form and implementing the function of PFM reforms.