Role of PFM in Governance
Presentation Outline
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Governance and Good Governance
PFM: Backbone of Governance
Nepal Context
Gaps
Next Step
PEFA and Nepal
Fundamentals
‘WHY’
• Better government
• Better service delivery
• Better result
• Greater interest of the greater people
‘WHAT’
• Legislative, judicial & executive functions of government at each level
• Subsidiarity: what can be devolved that should be devolved
• Universally applicable principles, norms & standards
• Mutual cooperation within and between levels of government systems,
institutions and processes
‘HOW’
• Feasibility & affordability: implementable, doable, achievable
• Incremental process
• Efficiency in process, due process of law
• Build on what we have: organic
Terminology
State : geography, population, sovereignty, government
Government : governing body, political institutions
Governance : act or manner of governing
Good governance : rule of law, transparency, accountability,
participation, equity, fairness, inclusion, responsiveness, consensus oriented,
efficiency, effectiveness
Reform: make changes in something so as to improve it
Restructuring : organize differently
Vertical form of government
Federal or unitary
Central, state, local government relations and dynamics
Horizontal system of government
Presidential/parliamentary system
Executive, legislative and judicial relations and dynamics
" Power tends to corrupt and absolute power corrupts
absolutely": John Dahlberg
Major Functions of Government
• Traditional: law and order, revenue collection, external affairs, police state
• Vertical functions : Policy, legislation, national standard, guideline, overall
planning: vision and mission, asset creation: human, social and infrastructure,
Implementation, M&E, financing, coordination and accountability
• Horizontal Functions : Economic: revenue collection, agriculture, land reform,
labour and employment, trade and commerce, poverty alleviation, help
enhancing growth
• Social : health, education, social justice, social security, social protection
• Infrastructure: road, highway, irrigation, hydropower, information highway
• Governance: regulatory, oversight, law and order, RTI, corruption control, human
right, external affairs, environment, natural resources, climate change
• Deliver classic public goods, Involve in delivering larger public goods, assist
marginalized and vulnerable, formulate policy of equity, create conducive public
Service delivery environment
• Human resource management/development, public financial management
• Regulator, facilitator, enabler, coordinator
"Enabling approach is better that feeding"
Level of Governance
Level of
Governance
Civil Society
Global
International NGOs
Multinational and regional
and global Networks of government
Activities
International
corporations/Mul
tinational
companies
International
market
National
National interest
groups,
nongovernmental
organizations,
Volunteering
organizations
Nation-state
Central organs of the national
legislature, executive and
judiciary
Business
community,
privatization of
state sector
nationalized
assets
Federal constitutions
safeguarding state’s rights and
autonomy over some functions
Political, fiscal and
administrative decentralization
to regional, local and community
Privatization of
regional and local
sector assets and
contracting out
of services
Sub-national Regional, local and
community
interest groups,
nongovernmental
organizations,
voluntary societies
Public Sector
Private Sector
Dimensions of Governance
• The Political Dimension: Process by which governments
are selected, monitored and replaced;
• The Economic Dimension: Capacity of any government to
effectively formulate and implement sound policies as well
as provide public services for its citizens;
• The Institutional Dimension: Respect of citizens and the
state for the institutions that govern social and economic
interactions among them.:
• Ethical Dimensions: State actors, officials, corporate, mind
set, behavior and paradigm
Good Governance and Poor Governance
Good Governance
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Accountable
Consensus oriented
Participatory
Transparent
Rule of law
Responsive
Equitable & inclusive
Economy, efficient and
effective
Poor Governance
• Diversion of Public Resources for
Private Gains
• Impunity or arbitrariness in the
application of Law
• Excessive rules which impede the
functioning of markets
• Non-transparent Decision-making
• Discretionary allocation of
resources
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k|hftGq
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b]zdf ljBdfg juL{o, hftLo, If]qLo, n}+lËs ;d:ofx¿nfO{ ;dfwfg ug{ /fHosf] cu|ufdL
k'g{;+/rgf ug]{ k|lta4tf cg'?k ;+3Lo nf]stflGqs u0ftGqsf] ;+:yfut ljsf; ug]{ .
Fiscal Governance
 Public expenditure policy: Impacts on growth, social
security, employment and inflation
 Revenue/taxation policy : impacts on investment,
equity, inflation and resource allocation
 Foreign aid policy: aid management
 Public debt policy : impacts on interest rate, inflation
and private investment
 Financial policy : financial stability/private investment
Ultimate Goal of Fiscal Governance
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Maximization of domestic resource
Decreasing the dependency upon foreign aid
Rational use of domestic borrowing
Efficient and productive allocation of public
resources
• Poverty alleviation through growth
• Macro economic stability and predictability
Public Finance?
• Public: citizens, people, of the people, by the people, for the
people or related to government
• Finance: to invest, or mobilization of financial resources or money
for desired goal
• Public finance: subject matter related to mobilization and
utilization of public/government money or resources
• Government : trust
• Government employees: Trustees, change agent, cream of the
society, neutral competency, integrity, objectivity, confidentiality
Dimensions and Principle of Public Finance
Dimensions:
• Public expenditure: public goal, expenditure policy
programs, and public spending
• Public revenue: tax and non tax revenue
• Public debt: internal, external, grants etc.
Principle:
• No taxation without representation
• No public expenditure without parliamentary
consent
Public Financial Management
• PFM talks about planning, resource mobilization,
expenditures, reporting and audit of public monies
and involves systems and staff in every agency of
government.
• Public Financial Management (PFM) is about how
government manages public monies for better
government, better results and better services to
the citizens.
• Those results must be for the wellbeing of the
society and people at large.
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Public Financial Management
• Handling of public purse for better results
• Achieving results, managing risks, prudence behavior
• ;/sf/sf] ;du| ljQLo rqmsf] Joj:yfkg ug]{ sfo{nfO{ ;fj{hlgs ljQLo Joj:yfkg
elgG5
• ;fj{hlgs vr{,, /fh:j kl/rfng, ;|f]t kl/rfng, hjfkmb]lxtf -k|ltj]bg / hjfkm_
• ;'zf;gsf rf/} cfofdx? -/fhgLlts, cfly{s, Joj:yfksLo / g}lts_ ;u ;/f]sf/ /fVb5 .
• ;dfj]zL cfly{s j[l4 (Growth), cfly{s :yfloTj (Stability), ;fdflhs Gofo
(Equity) xfl;n ug]{ k|d'v dfWod g} ;fj{hlgs ljQLo Joj:yfkg xf]
"A Good PFM system is prerequisite for GOOD GOVERNANCE"
Principles
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Public value maximization
Parliamentary approval
Due process of law
Public accountability
Prudence: judgment
Due care: public trustee
Principle of fiscal sustainability
Independent audit
;fj{hlgs ljQLo Joj:yfkg : p2]Zo
• ;dli6ut cfly{s cg'zf;g sfod ug]{,
• >f]t / ;fwgsf] /0fgLlts ljt/0f ug{{],
• >f]t / ;fwgsf] pkof]udf k|efjsf/Ltf, sfo{s'zntf, kf/bzL{tf tyf hjfkmb]xLtf
clea[l4 ug]{,
• ;fj{hlgs ;]jf k|jfxdf ;'wf/ ug{ ;xof]u k'¥ofpg' ,
• ljQLo hf]lvd Go"gLs/0f ug{] pkfox? klxNofpg]
• ;'zf;g sfod ug{ ;xof]u k'¥ofpg'
;fj{hlgs ljQLo Joj:yfkgsf If]q / sfo{x?
If]q
!= cfly{s of]hgf
@= ah]6 Joj:yfkg
#= ;fj{hlgs vr{ Joj:yfkg
$= n]vfÍg / k|ltj]bg
%=
cfGtl/s lgoGq0f
^= n]vfk/LIf0f
sfo{x?
!= ljQLo ;|f]t ;fwgsf] cg'dfg / klxrfg
@=
ljQLo ;|f]t ;fwgsf] k|flKt
#= ljQLo ;|f]t ;fwgsf] af8kmf8
$= sf]if Joj:yfkg
%=vr{ pkof]u
^= n]vfkfng
&= cfGtl/s lgoGq0f
*= k|ltj]bg
(= n]vfk/LIf0f
!)=hgzlQm Joj:yfkg
;fj{hlgs ljlQo Joj:yfkgsf] cjojx?
 gLlt, of]hgf / sfo{qmd
 ah]6 k|0ffnL
 /fh:j jf cGo k|fKtLsf] Joj:yfkg
 vr{ Joj:yfkg
 lgsf;f, vr{ / vr{ >f]t Joj:yfkg
 sf]if Joj:yfkg -vftf k|jfx, ;dli6 cfly{s sf/f]jf/ ;dfj]z_
 Zf]wegf{ Joj:yfkg
 ;fj{hlgs vl/b Joj:yfkg,
 cfGtl/s lgoGq0f,
 C0fsf] Joj:yfkg
 n]vf+sg, k|ltj]bg tyf ljlQo k|ltj]bg
 cfGtl/s n tyf clGtd n]vfk/LIf0f, cfGtl/s tyf afXo lgu/fgL
The PFM Cycle
Policy/planning
Scrutiny and
Audit
Optimum
utilization
of public
resources
Accounting,
recording and
reporting
Budgeting
;fj{hlgs ljQLo Joj:yfkgdf ;+nUg lgsfox?
lgsfo
!= Joj:yfkLsf ;+;b -;ldlt ;d]t_—
d'Vo e"ldsf
cfo—Joo ug]{ clVtof/L k|bfg —
;/sf/nfO{ hjfkmb]xL t'Nofpg]
@=
/fli6«o of]hgf cfof]u—
cfly{s of]hgf / sfo{qmd th'{dfdf ;dGjo ug]{
#= cy{ dGqfno —
ah]6 th'{df / sfof{Gjogsf] cg'udg tyf d"Nof+sg
$= ljifout lgsfox?—
ah]6 sfof{Gjog
%=d=n]=lg=sf= —
;l~rt sf]ifsf] ;~rfng, n]vfÍg / k|ltj]bg
^= sf]=n]=lg=sf= —
ah]6 lgsf;f, cf=n]=k=/ k|ltj]bg
&= g]=/f=a}+s / cGo a}+sx?—
vftf ;~rfng
*= d=n]=k=sf] sfof{no— n]vfk/LIf0f / d"NofÍg k|ltj]bg
(= c=b'=c=cfof]u —
clVtof/sf] b'?kof]u / e|i6frf/hGo sfo{sf] cg';Gwfg
!)=bft[ ;d'bfo
—
cfly{s tyf k|fljlws ;Nnfx / ;xof]u
!!= gful/s ;dfh
—
cfly{s k|zf;gsf] ;'b[9Ls/0fsf nflu ;sf/fTds bjfj l;h{gf .
!@= ljsf; ;fe]mbf/x?
Public Expenditure Management
• ;/sf/n] hgtfsf] nflu hltklg sfd u5{ ;fj{hlgs vr{s} dfWodaf6 ub{5 .
• rfn' vrnfO{ jfl~5t ;Ldfleq /fVg], pTkfbgzLn Pjd\ k"FhLut vr{df j[l4 ug{], vr{sf]
k|fyldstf lgwf{/0f ug{], ljQLo kf/blz{tf sfod ug{], vr{sf] cg'udg tyf
d"Nof+sgdf k|efjsf/Ltf Nofpg] h:tf ;fj{hlgs ljQLo Joj:yfkgsf ljljw kIfx?sf ;fy}
;fj{hlgs vr{ s;/L ePsf] 5 / To;sf] s'zntf s:tf] 5 eGg] af/] ;du| d'Nof+sg / ;dLIff
• Aggregate fiscal discipline, efficiency in resource
allocation, better service delivery
• Operational efficiency : economy, efficiency
effectiveness, due process of law
;fj{hlgs vr{ ;fj{hlgs ljQLo Joj:yfkgsf] Ps cleGg c+u xf] .
• ;fj{hlgs ljQLo Joj:yfkgdf hjfkmb]xLtf /xg' kb{5 .
Context
• Governance indicator (2012 WB): Voice and accountability-33,
Political stability: 17, Government effectiveness: 30, Regulatory
quality: 32, Rule of law: 36, Control of corruption: 36
• GNI per capita $721
• Population in agri. and non-agri. 73.9 and 26.1 percent
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23.8 percent of population below the national poverty line.
Economic growth: below 5 percent
Poverty : 23.8 % (One of the poorest countries )
Unemployment : 2.1 %
Under employment : 30 %
Globalization index: 165/188
Doing business index: 135/186
Global competitive index: 125/144
Issues
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of]hgf k|0ffnLdf ;'wf/
ah]6 k|0ffnLdf ;'wf/
sf]if Joj:yfkgdf ;'wf/
n]vfk/LIf0fdf ;'wf/ : cfGtl/s / afx\o
/fh:j k|zf;gdf ;'wf/
C0f Joj:yfkgdf ;'wf/
;fj{hlgs v/Lb Joj:yfkgdf ;'wf/
n]vf k|0ffnL, clen]lvs/0f / ljQLo k|ltj]bg k|0ffnLdf ;'wf/
pQ/bfloTj k|0ffnLdf ;'wf/
ljQLo kf/blz{tf
:yfgLo lgsfodf ljQLo cg'zf;g
;fj{hlgs ;+:yfgdf ljQLo cg'zf;g
u}/;/sf/L ;+:yfx?df ljQLo cg'zf;g
gLlh If]qdf ljQLo cg'zf;g
Mission Accounting System
Context
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Knowledge economy index :135/145
Corruption perception index: 116/177
Human development index: 157/187
Gross happiness Index: 135/156
Failed state index: 27/177
Per day 1500 young people going abroad for job (3d)
Gini coefficient : 32.8
Power shortage: 12 hours per day
Trade deficit : 39281 corer export-import ratio: 13.5
Remittance Trap over than budget
Context
dxfn]vf k/LIfssf] PsfpGgf}+ jflif{s k|ltj]bg, @)&)
;/sf/L sfof{nosf] km5\of}{6 ug{ afFsL a]?h' M &# cj{
^* s/f]8
cGo ;+:yf, ;ldlt / lhNnf ljsf; ;ldltsf] a]?h' M &! cj{ &$
s/f]8
n]vf k/LIf0f aSof}tf M @ cj{ %! s/f]8
/fhZj aSof}tf M (# cj{ #^ s/f]8
Zff]wegf{ lng afFsL a}b]lzs cg'bfg M @) cj{ &&
s/f]8
Zff]wegf{ lng afFsL j}b]lzs C0f M * cj{ (% s/f]8
hdfgt a;L lbPsf] C0fsf] efvf gf3]sf] ;fFjf Jofh M @
Context
c;"n ug'{kg]{ M !)=@, lgoldt ug'{kg]{ M %!=#, k]ZsL M
#*=#*
/fhZj r'xfj6, v/Lb Joj:yfkg, ah]6 cg'zf;g, cfGtl/s lgoGq0f /
lhDd]jf/L axg k|efjsf/L gePsf]
 cfGtl/s lgoGq0f k|0ffnL ;an gePsf]
 lgof]ux?sf] v/Lb Joj:yfkg k|efjsf/L x'g g;s]sf]
 cfGtl/s n]vfk/LIf0f x'g] gu/]sf],
 /fhZjsf] gubL /l;b lgoGq0f g/fv]sf]
 ah]6 a]u/ vr{ u/]sf]
aLdf tyf cf}ifwL pkrf/df kof{Kt ah]6 sf] cefj /
s/ s6\6L gePsf]
cGt/f{li6«o ;+3 ;+:yfx?sf] ;b:otf z'Ns
Gaps
Gaps
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Trust gap
Roles gap
Resource gap
Capacity gap
Knowledge gap
Technology gap
Management gap
System, process and
institutional gap
Gaps
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Information gap
Coordination gap
Fiscal gap
Policy gap
Blaming game
Culture gap
Behavioral gap
Dependency
Negative thinking
Survival stage
Gaps
• gtLhf tyf sfo{ ;Dkfbgdf cfwfl/t Joj:yfkg k|0ffnL
cjnDjg ug{ cfjZos 5 .
• ;fj{hlgs vr{ k|0ffnLnfO{ kf/bzL{, ldtJooL / k|efjsf/L
agfO{ hgtfsf] hLjg:t/df ;fy{s / u'0ffTds kl/jt{g
NofO{ ;'zf;gsf] cg'e"lt lbnfpg] sfo{ cem}
r'gf}ltk"0f{ 5 .
• ;a} sfdx? r':t, b'?:t, ;Ifd / k|efjsf/L ?kdf ;DkGg ug{
cem} a9L lhDd]jf/, O{dfGbf/, sd{lzn, pRr g}lts rl/q
/ dgf]jnsf ;fy sfd ug{ cfjZos 5 .
;'wf/ sfo{ of]hgf
Next Step
GOVERNANCE REFORM FRAMEWORK
Reform
systems
institutions,
processes,
procedures
Reform
mindsets,
paradigms
and
behavior
Leadership
Political will
and
Commitment
Vision
and
Mission
Active
Citizens
Engagement
PFM Links to Development Goals
MDGs, Vision, Mission,
LDC Graduation,
Political Manifesto
Other influencing factors
Dev
Goals
Service Delivery
Goals
Budgetary Outcomes
Fiscal/Exp Policy Goals
Budget deficit, Sector
allocations, Investment, Debt
ratio, Tax burden etc
Fiscal discipline, Strategic
allocation, Operational
efficiency
PFM system performance
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Next Step
• Fiscal Framework, Budgetary Framework, Expenditure
Framework
• Investment, production, distribution, redistribution
• Sector Business Plan, MTEF, MTBF, SWAP, FMIS, IFMIS,
LMBIS, PEFA, MCPM, result monitoring
• Global budget, agency budget
• Local level PFM Reform (DDC, VDC, Municipality,
School, Hospital)
• Expenditure tracking: health, education, infrastructure
• Off Budget/off aid through national treasury system
• Whole of the government reporting
• Grant policy
Next Step
Psn vftf sf]]if k|0ffnL (Treasury Single Account) :
• cf=j= )^^÷)^& b]vL eQmk'/ / nlntk'/ lhNnfdf gd"gf
k/LIf0fsf] ?kdf
z'? eO{ )&)÷)&! b]lv &% j6} lhNnfdf nfu" ePsf] cj:yf 5
.
• ;a} lhNnfx? dxfn]vf lgoGqs sfof{no;Fu Online System
df hf]l8Psf] . g]kfn ;/sf/sf] ah]6 vr{sf] ljQLo cj:yf
online, real time anytime anywhere x]g{ ;lsg] cj:yf 5 .
• 5l/P/ /x]sf sl/j $%)) e"QmfgL s]Gb|x? / !$))) ;/sf/L
a}+s vftfdf pNn]Vo ?kdf sdL cfPsf] 5 .
• e"QfgL cfb]z k7fPsf] b'O{ 306f leq e"QmfgL ul/;Sg]
k|ltj4tf k'/f ePsf] 5 . ah]6 sfof{Gjogdf k|efjsf/Ltf a9]sf]
cj:yf 5 .
• cGt/fli6«o If]qdf g} Role Model sf] ?kdf ljsf; ePsf] cj:yf
Next Step
FMIS df ;'wf/ M
• FCGO : FMIS, DTCO : DECS, Spending unit: CGAS
• vr{, /fhZj / ljQLo cj:yf Online real-time/anytime anywhere
x]g{ ;lsg] cj:yf 5 .
• dGqfnout, lhNnfut, pklzif{sut, rfn" / k"FhLut vr{ x]g{ / To;sf]
cWoog, ljZn]if0f / ;+Zn]if0f ug{ ;lsg] cj:yf 5 .
• FMIS nfO{ cy{ dGqfno tyf dxfn]vf k/LIfssf] sfof{no;Fu cfj4 ul/Psf] 5
. o;af6 lhNnfut clVtof/L / vr{, /fhZj / w/f}6Lsf] ljj/0f sfof{nod} a;]/
x]g{ ;lsg] ePsf] 5 . j}b]lzs ;xfotf Joj:yfkgdf ;d]t FMIS nfO cfj4 ug]{
sfo{ tof/L cj:yfdf 5 . lzIff ljefu;Fu FMIS nfO{ linkages ug]{ sfo{ clGtd
r/0fdf k'u]sf] 5 .
• ;/sf/sf gLlt, sfo{qmd / of]hgfaf6 jf:tljs Beneficiary nfeflGjt eP ePgg\
egL To;sf] Tracking ug]{ / FMIS nfO{ cGo ljifout dGqfnox?;Fu ;d]t
cfj4 ug'{kg] 68\sf/f] cjZostf 5 .
Next Step
cfGtl/s n]vf k/LIf0f k|0ffnLdf ;'wf/
• cfGtl/s n]vf k/LIf0f k4lt, k|lqmof / k|0ffnLdf yk ;'wf/ u/L
ljQLo ;'zf;g sfod ug{ cfGtl/s n]vf k/LIf0fsf] Tracking
ug]{sfo{ z'? Ufl/Psf] 5 . O;sf nflu KfFfR j6f lhNnf 5gf}6
u/L sfo{ cufl8 a9fO{Psf] 5 . cfn]k Manual tof/ ug]{ tyf
cfn]ksf] /0fgLlts of]hgf tof/ u/L sfof{Gjog ug]{ / Nf]vf tyf
cfGtl/s n]vf k/LIfsx?sf nflu 5'6\6} cfrf/;+lxtf hf/L ug]{ sfo{
cufl8 a9fO{Psf] 5 .
• a]?h" / ljQLo hf]lvd a9\bf] 5 . d=n]=k= sf] kl5Nnf] k|ltj]bg
s"n a]?h' ^^ cj{ @^ s/f]8 k'u]sf] cj:yf 5 . :yfgLo lgsfox?df
gx'Fbf Accountability Vaccum df 5 . :yfgLo lgsfodf of]hgf,
ah]6, n]vf tyf n]vf k|0ffnL c:tJo:t 5 .
• ;fj{hlgs ;+:yfgx?sf] n]vf k|0ffnLnfO{ klg cGt/f{li6«o:t/sf]
agfpg ;lsPsf] 5}g . k|To]s ;+:yfgx?sf] cf–cfk\mg} n]vf
k|0ffnL /x]sf] ljBdfg cj:yf 5 . clwsf+z ;fj{hlgs ;+:yfgx?
a]?h'n] ynf k/]sf] cj:yf 5 .
Next Step
• cuffdL ^ dlxgfleq ;DkGg ug]{ u/L Second PEFA
assessment ;DaGwL sfo{ k|f/De ePsf] 5 . ( j6f sub-group
u7g eO{ sfo{ b|'t ?kdf cufl8 a9]sf] cj:yf 5 . Credibility of
the budget, comprehensiveness and transparency, budget
cycle and donor practices 28+3 = 31 indicators
• ;dod} zf]wegf{ dfu ug]{ sfo{nfO{ pRr k|fyldstf lbO{Psf] 5
. oBlk zf]wegf{ ;dod} dfu gug]{ k|j[lQ cem} sfod} 5 .
cem} klg !& cj{ eGbf a9L /sd ;f]ewegf{ lng afFsL g}
cj:yf 5 .
Next Step
• g]kfn ;/sf/sf] ;fj{hlgs ;DklQsf] PsLs[t ljj/0f -ejg,
;/sf/L hUuf, -klt{ h+un, ;8s cflb afx]s dfq_ tof/
ul/Psf] 5 . o;df lgoldt ?kdf Update ug] sfo{ e}/x]sf]
5 . pQm ljj/0f dn]lgsfsf] Website df ;fj{hlgs ;d]t
ePsf] 5 .
• Vfr{ ug]{ PsfO{x?df Computerize Government
Accounting System/CGAS sf] nfu" ug]{ tof/L eO/x]sf] 5
. sfZsL lhNnfaf6 Piloting sf] sfo{ z'? eO{ ;s]sf] 5 .
• /fhZj ;+sng tyf k|ltj]bgnfO{ yk k|efjsf/L agfpg tyf
dn]lgsf, cy{ dGqfno / g]kfn /fi6«a}+saf6 x'g]
tYof+s;"rgf k|jfxdf Ps?ktf Nofpg Business Process ;lxt
Revenue Management Information System (RMIS) agfpg]
sfo{ cufl8 a9fO{Psf] 5 .
Next Step
• g]kfn
;/sf/sf]
n]vf
k|ltj]bg
k|0ffnLnfO{
cGt/f{li6«o:t/sf] agfpg] ;Gbe{df g]kfn ;fj{hlgs If]q
n]vfdfg (Nepal Public Sector Accounting Standard NPSAS)
sf] g]kfnL ?kfGt/0fsf] sfo{ ;DkGg ePsf] 5 / rfn"
cf=j= b]vL dlxnf afnaflnsf tyf ;dfh sNof0f dGqfno
/ ef}lts k"jf{wf/ tyf oftfoft Joj:yf dGqfnodf Piloting
sf] ?kdf nfu" ug] ;Gbe{df Consultant lgo'lQm eO{
8«fkm\6 l/kf]6{ ;d]t k|fKt ePsf] 5 .
• Accounting Manual agfpg] sfo{ cufl8 a9fO{Psf] 5 .
Next Step
• vr{ / /fhZj /sd juL{s/0f / JofVofnfO IMF sf]
GFS 2001 cg'?k cGt/f{li6«o:t/sf] agfpg
Steering Committee / Task Force sf] u7g eO{ sfo{
k|f/De ePsf] cj:yf 5 .
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dfkm{t e"QmfgL ug]{ sfo{sf] sfo{ljlw :jLs[t
eO{ e"QmfgL sfo{ ;d]t z'?jft ePsf] 5 .
Next Step
• ;/sf/L afFsL c;'n pk/ ug]{ sfo{nfO{ cem k|efjsf/L agfpg
s]Gb|Lo txl;n sfof{nosf] ;+:yfut Ifdtf ljsf; ug]{ sfo{qmd 5 .
• ;fj{hlgs ljQLo Joj:yfkg tflnd ;+:yfsf] :yfkgf ug{ cfjZos 5 .
klZrdf~rnsf] kf]v/fdf :yfkg ug]{ k|f/lDes ;f]rfO{ /x]sf] 5 .
• /fHo k'gM ;+/rgfsf ;DaGwdf ;+3Lo k|0ffnL cg'?k ;du|
;fj{hlgs ljQLo Joj:yfkgsf] k'gM;+/rgfsf] 9fFrf, ;lxt vfsf tof/
u/L /fo / ;'emfj ;lxtsf] k|ltj]bg ;+ljwfg ;efsf] ;DalGwt ;ldltdf
;'emfj k7fpg] sfo{qmd 5 .
• n]vf ;d"xsf] ;?jfnfO{ Jojl:yt agfpg dfkb08 tof/ ePsf] 5 t/
ljs]Gb|Lt ;?jf k4lt cjnDag ug{ ;lsPsf] 5}g . ;?jfnfO{
Joj:yLt ug]{ sfo{ r'gf}ltk"0f{ 5 . ;?jf k|0ffnLdf cToflws bjfj
5.
• k'/fgf P]g, lgod, sfg"g tyf sfo{ljlw / lgb]{lzsfx?df ;fdlos
kl/dfh{g ug{ cfjZos 5 . o;sf nflu sfo{bn agfO{ sfo{ cufl8
a9fpg] sfo{qmd /x]sf] 5 .
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• gtLhf tyf sfo{ ;Dkfbgdf cfwfl/t Joj:yfkg k|0ffnL
cjnDjg ug{ cfjZos 5 .
• ;fj{hlgs vr{ k|0ffnLnfO{ kf/bzL{, ldtJooL / k|efjsf/L
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r'gf}ltk"0f{ 5 .
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cem} a9L lhDd]jf/, O{dfGbf/, sd{lzn, pRr g}lts rl/q
/ dgf]jnsf ;fy sfd ug{ cfjZos 5 .
• hgtfsf] ljZjf; cfh{g ug]{ .
Latest Treasury Position
s"n vr{ M # vj{ ## cj{ -^$=%@ k|ltzt_
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z]o/ nufgL M !@! cj{
What is the PEFA Program?
Aim: contribute to development effectiveness via the
‘Strengthened Approach’ to support PFM Reform
(country-led; harmonized PFM analytical work; common data pool)
• rfn' vr{nfO{ aflG5t ;Ldf leq /fVg], k'+hLut tyf pTkfbglzn vr{df a[l4 ub}{ u/LjL, j]/f]huf/L /
c;dfgtnfO{ sd ug]{, vr{sf] k|fyldstf lgwf{/0f ug]{, ljQLo kf/blz{tf sfod ug]{, vr{sf] cg'udg tyf
d'Nof+sgdf k|efjsfl/tf Nofpg] h:tf ljQLo Joj:yfkgsf dxTjk"0f{ sfo{x? ;+u} ;/sf/L vr{ s;/L ePsf] 5 /
To;sf] s'zntf s:tf] 5 eGg] af/] ;/sf/n] ;fj{hlgs vr{ / laQLo pQ/bfloTjsf] nflu sfo{ ;Dkfbg dfkg ug{
ljleGg ;"rsx? tof/ u/L ;f] sf] :t/ d'Nof+sg ug]{ sfo{;Dkfbg dfkg ;+oGq (Performance
Measurement Framework) g} PEFA xf] .
• @)^%.)^^ sf] ah] aQmJon] Joj:yf u/] cg'?k @))* df ;DkGg PEFA Assessment n] l;kmfl/z
cg';f/ PEFA ;lrjfnosf] :yfkgf ePsf]
;fj{hlgs vr{ tyf ljQLo pQ/bfloTj ;lrjfno (Public
Expenditure and Financial Accountability Secretariat)
• ;fj{hlgs ljQLo Joj:yfkg ;'wf/sf sfo{x?sf] ;dGjo ug{ :yflkt lgsfo .
• cy{ dGqfno cGtu{t PFM Reform Unit sf] ?kdf sfd ub{5 .
• o; ;lrjfnon] ;fj{hlgs ljQLo Joj:yfkg lgb]{zg ;ldltsf] ;lrjfnosf] ?kdf sfd ub{5
.
• ;f] lgb]{zg ;ldltsf] cWoIf cy{;lrj /xg] Joj:yf 5 .
Strengthened Approach to PFM Reform
1. A country-led PFM reform program, including a
strategy & action plan reflecting country priorities;
implemented through government structures
2. A donor coordinated program of support, covering
analytical, technical & financial support
3. A common information pool, based on a framework
for measuring performance & monitoring results over
time i.e. the PFM Performance Measurement Framework
47
Purpose of the PEFA Framework
The Framework provides:
• a high level overview of all aspects of a country’s PFM
systems performance (revenue, expenditure, financial
assets/liabilities, procurement): are tools in place to deliver
3 main budgetary outcomes (aggregate fiscal discipline;
strategic resource allocation; efficient service delivery)?
What can countries use PEFA for?
•Inform PFM reform formulation, priorities
•Monitor results of reform efforts
•Harmonize information needs for external agencies around a
common assessment tool
•Compare to and learn from peers
48
Adoption of the PEFA Framework
Very good progress – globally
• 350+ assessments, covering 140+ countries
• Since 2010, mostly Repeat & Sub-National assessments
High country coverage in many regions
• Africa and Caribbean 90% of countries
• Latin America, Eastern Europe, Asia Pacific 50-80%
Used in many Middle Income countries
• Upper MICS: e.g. Brazil, Turkey, Belarus, South Africa
• Lower MICS: e.g. India, Kazakhstan, Ukraine, Morocco
49
Global Roll-out of the Framework
50
Components of the Framework
• A standard set of high level PFM indicators to
assess performance against 6 critical dimensions of
a PFM system
• 28 government indicators covering all aspects of PFM
• 3 donor indicators, reflecting donor practices
influencing the government’s PFM systems
• A concise, integrated performance report – the
PRM-PR – developed to provide narrative on the
indicators and draw a summary from the analysis
51
Structure of the indicator set
52
Standard set of high-level indicators
A. CREDIBILITY OF THE BUDGET: PFM OUT-TURNS
(1- 4)
B. COMPREHENSIVENESS & TRANSPARENCY (5 10)
C. BUDGET CYCLE
C1 POLICY-BASED BUDGETING (11 – 12)
C2 PREDICTABILITY & CONTROL IN BUDGET EXECUTION (13 –
21)
C3 ACCOUNTING, RECORDING & REPORTING (22 – 25)
D. EXTERNAL SCRUTINY & AUDIT (26 – 28)
E. INDICATORS OF DONOR PRACTICES (D1 – D3)
53
Calibration & scoring
Calibrated on 4 Point Cardinal Scale (A, B, C, D)
•
•
•
•
Reflecting internationally accepted ‘good practice’
Determine score by starting from ‘D’, go upwards
Do not score if evidence is insufficient
Most indicators have 2, 3 or 4 dimensions - each must be
rated separately
• Aggregate dimension scores for indicator; two methods
M1 or M2, specified for each indicator
• Intermediate scores (B+, C+, D+) for multi-dimensional
indicators, where dimensions score differently
54
The PFM Performance Report
An integrated narrative report including:
Summary assessment of PFM system


The impact of PFM system performance on budgetary outcomes
(fiscal discipline; resource allocation; service delivery)
What is the story line, the number one message? - it may be all
Minister remembers! (starting point for discussion of reform
priorities)
Introduction with the context for the assessment
Country background information
Evidence & justification for scoring the indicators
Country specific issues
Description of reform progress & factors influencing it
55
k]kmf lgb]{zs ;ldlt
Leadership and strategic direction of the Public
Financial Management Reform Program

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
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

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

;lrj, cy{ dGqfno
dxfn]vf lgoGqs
;lrj, /f=of]=cf= ;lrjfno
;lrj, ef}=of]= tyf lg=dGqfno
;lrj, :yf=lj=dGqfno
;lrj, lzIff dGqfno
;lrj, :jf=tyf hg;+Vof dGqfno
;lrj, ;f=v=c=sfof{no
pk dxfn]vf k/LIfs, d=n]=k= sfof{no
;x ;lrj, j=tyf sf=dxfzfvf, cy{ dGqfno
;x ;lrj, j}=;=;= dxfzfvf, cy{ dGqfno
cWoIf, 6«fG;k/]G;L OG6/g]zgn g]kfn
cWoIf, g]kfn pBf]u jfl0fHo dxf;+3
;+of]hs, PEFA ;lrjfno
–;b:o
–;b:o
–;b:o
–;b:o
–;b:o
–;b:o
–;b:o
–cWoIf
–;b:o
–;b:o
–;b:o
– ;b:o
– ;b:o
–;b:o ;lrj
PEFA sfo{ ;ldlt (PEFA Working Committee)





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
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
;+of]hs, PEFA ;lrjfno
;x ;lrj, /f=of]=cf= ;lrjfno
gfoj dxfn]vf k/LIfs, d=n]=k= sfof{no
;x ;lrj, of]hgf dxfzfvf, :yf=lj=dGqfno
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–;b:o
–;b:o
–;b:o
–;b:o
–;+of]hs
–;b:o
–;b:o
–;b:o
–;b:o
–;b:o ;lrj
 PEFA Implementation Unit (Ministry Level): Planning chief and account
division
 District PEFA Implementation Unit (District Level): Chief DTCO, civil
society member
PEFA Implementation Flow
National Planning
Commission (NPC)
Line
Ministries
and
Departments
Public Account
GoN/MoF
Committee (PAC)
Steering
Committee
Working
Committee
Other Agencies
FCGO
PIUs
Line Agencies
and
DPIUs
•
•
•
•
•
OAG
PPMO
CIAA
NVC
Local PFM
Donor Forum
• ICAN
• ASB
• CSOs
DTCOs
Paying Offices
PEFA Secretariat
58
;fj{hlgs ljQLo Joj:yfkg ;'wf/ sfo{qmd
• ;g\ @))* df klxnf] k6s PEFA Assessment kl5 To;sf cfwf/df k|yd
r/0fsf] ;'wf/ sfo{qmd z'? ePsf] . k]kmf ;lrjfnosf] ;dGjodf ljQLo
Joj:yfkg ;'b[9Ls/0f cfof]hgf z'? ul/Psf]
• MDTF ;xof]u h;df d"ntM # sfo{x? (Components) /x]sf 5g\
s_ Psn vftf sf]if k|0ffnLsf] sfof{Gjog (TSA) M
v_ ljQLo k|ltj]bg k|0ffnLdf ;'wf/
– ;fj{hlgs If]qsf] ljQLo k|ltj]bg k|0ffnL ;'wf/
– lghL If]qsf] ljQLo k|ltj]bg k|0ffnL ;'wf/
u_ k]kmf ;lrjfnosf] ;'b[9Ls/0f / ;fj{hlgs ljQLo Joj:yfkgsf] ;+:yfut Ifdtf ljsf;
cGTodf
• c;n ljQ gLltsf] lgdf{0f / To;sf] k|efjsf/L sfof{Gjog, ;/sf/L, lghL, u};;, gful/s
;dfh tyf ;fdflhs, ;fd'bflos ;+:yf tyf ljsf;sf ;fem]bf/x?sf] ;':ki6 e"ldsf, ;xsfo{,
;dGjo, ;fem]bf/L, ;dembf/L, gful/sx?sf] ;lqmo ;xeflutf, :jfldTj /
ckgTjaf]w, /fHo Joj:yfsf ;~rfnsx?n] a9L lhDd]jf/, OdfGbf/, ;dembf/,
sd{lzn, ;dk{0f efj, ;bfrf/ k4lt, pRr g}lts rl/q / dgf]jnsf ;fy lhDd]jf/L k"/f
u/]df ;fj{hlgs ljQLo Joj:yfkgsf] If]qdf b]vfk/]sf ;d:ofsf] ;dfwfg eO ;d[4,
;d'Ggt, ultlzn, cfw'lgs / Gofok"0f{ ;dfhsf] lgdf{0f x'g]df ljZj:t x'g ;lsG5 .
Thank you