Tracking Progress in the Quality of PFM Systems in HIPCs
The study review changes in PFM system performance in Heavily Indebted Poor Countries (HIPC) from 2001 to 2006 using data from the original HIPC expenditure tracking methodology, updated with additional information from PEFA assessments conducted after the last round of HIPC assessments in 2004. It covers 11 of the 16 HIPC indicators and 15 of the 26 countries from the original assessment in 2001.
Results are presented according to the number of HIPC benchmarks met and to the raw numerical scores for each indicator. In addition to presenting the results along the original dimensions of phases of the budget cycle (formulation, execution, reporting), the paper also presents the results using a new categorization (quality of budget information, the budget as policy instrument, and effectiveness of control and oversight functions).
The results indicate significant variations across countries and between specific benchmarks, with some countries performing better on average, and improvements against some benchmarks being more evident than others.