Poverty Reduction Budget Support Phase I

• Reference: P-GM-K00-006
• Approval date: 14/01/2009
• Start date: 14/05/2009
• Appraisal Date:
• Status: On goingOnGo
• Location:
• Implementing Agency:

The main development objectives of the proposed grant are to:

(i) promote efficiency, transparency and accountability in the use of public resources through effective budget planning and auditing and increased revenue mobilization; and

(ii) build public sector capacity through civil service reforms. The strengthening of public financial management will enhance efficiency, effectiveness, transparency and accountability of public investments, thus enhancing their economic impact. The reforms of the civil service are expected to improve government capacity for public service delivery including delivery of PFM outcomes. There is a civil service reform strategy to which this programme is aligned.

(i) The implementation of the reform measures is expected to improve resource allocation, fiscal management and public service delivery. Ensuring that IFMIS will be sustainable and will strengthen all stages of budget preparation, execution and monitoring. The preliminary steps towards the development of a MTEF can gradually turn the budget into a results-oriented policy tool and strengthen the linkages between PRSP policy priorities and the budget. Strengthened internal and external audits would improve the transparency and accountability of the use of public resources. Procurement reform measures will strengthen the regulatory framework and improve the efficiency of public procurement.

(ii) The proposed reform measures will improve the efficiency, transparency and effectiveness of revenue administration. They would contribute to maintaining the current high levels of revenue collection, thus providing the fiscal space for PRSP related expenditures.

(iii) The reforms are essential for building public sector capacity by improving the government's ability to recruit and retain qualified staffs, and provide them with adequate incentives.

ISSAHAKU Abdul-Nashi - OSGE1