Ta for Public Finc Mgmt Reforms
- Reference: P-SZ-KA0-003
- Approval date: 03/11/2011
- Start date: 16/07/2013
- Appraisal Date: 15/04/2011
- Status: OngoingOnGo
- Implementing Agency: GOVERNMENT OF SWAZILAND MINISTRY OF FINANCE
- Location: SWAZILAND
In more detail, the project will focus on:
A) Resident Advisor to the Ministry of Finance
The project will provide technical assistance, through the hiring of a long term Resident Advisor, for a two year period. This Resident Advisor will provide advisory services and technical support to the MoF in the area of PFM. Some of the key activities to be undertaken include: developing an action plan derived from the PFM strategy and to facilitate the TA to be delivered by the DPs; reviewing the budget process to make it more consultative; strengthening the institutional framework for budget formulation and monitoring; and strengthening the institutional capacity for public sector effectiveness. In addition to there is need for a coordination mechanism to be developed in line with the PFM action plan to monitor and guide donor interventions in the various PFM areas. In carrying out this assignment, the Resident Advisor shall build on previous and existing efforts and work closely with the Ministry of Finance (including the Minister of Finance), the Budget Director, the MoPED's technical teams and other institutions, involved in the implementation of PFM reforms relate to the assignment. The Advisor will undertake a comprehensive review of:
(i) the existing institutional capacities for Government to effectively apply sound PFM practices,
(ii) the current process of monitoring PFM reforms, and
(iii) the current consultation process for budget formulation, and
(iv) capacities for donor coordination. This review will allow identifying existing gaps and drawbacks and thus proposing recommendations accordingly. In making recommendations, institutional conditions and reform plans will be taken into account, and the objective of achieving realistic progress towards internationally recognized good practices, within the specified timeframe.
B)Support to Re-introduce a Medium Term Expenditure Framework (MTEF)
This component will support the re-introduction of a MTEF by complementing the TA to be delivered by the Regional Technical Assistance Centre for Southern Africa (AFRITAC South). The need for a medium term perspective in budgeting has been recognized as important by the GoS through its earlier efforts to establish an MTEF's for all government departments. However, its implementation was unsuccessful due to the lack of a regulatory framework; unavailability of accurate and timely statistics and models for forecasting; an unsupportive institutional and organization framework and insufficient skills in Government particularly MoPED and MoF to ensure its sustainable use.
The project's specific objectives are to:
(i) enhance the institutional framework for PFM;
(ii) enhance the capacity to monitor and implement PFM reforms;
(iii) strengthen capacity at relevant levels of government to undertake budget reforms related to budget formulation and medium-term expenditure planning, and:
(iv) strengthen the capacity to monitor and coordinate donor interventions in PFM.
The Government has indicated to the Bank that it requires urgent technical assistance to improve the capacity and institutional framework for the implementation of PFM reforms in view of the fiscal challenges. Therefore, the proposed technical assistance is centered on supporting reforms identified in the Fiscal Adjustment Roadmap (FAR) and also address challenges identified in other PFM assessments, undertaken by development partners, notably the World Bank led Country Integrated Fiduciary Assessment Report (CIFA) and a recent assessment of Expenditure Management undertaken by the International Monetary Fund (IMF).
The program will also assist the government capacity to undertake reforms that are necessary for fiscal sustainability including those to be supported by the Bank under a proposed budget support loan. This proposed technical assistance will also complement the ongoing support that the Bank is currently providing to the Swaziland Revenue Authority
MATILA Mothobi P.S. - OSGE2