Budget Support and PAF in Mozambique PARPA’s and Budget’s approach - 2007 CABRI 17 th to 19 th of May By: Álvaro Loveira.

Apresentação em tema: "Budget Support and PAF in Mozambique PARPA’s and Budget’s approach - 2007 CABRI 17 th to 19 th of May By: Álvaro Loveira."— Transcrição da apresentação:

1 Budget Support and PAF in Mozambique PARPA’s and Budget’s approach - 2007 CABRI 17 th to 19 th of May By: Álvaro Loveira

2 QAD’s framing in Mozambique Monitoring frame of PARPA II; Monitoring and Assessment of PARPA, PES and OE; QAD’s results – 2006; QAQ’s Indicators Matrix; OE’s performance indicators QAD’s indicators; PAP’s Assessment Performance

3 QAD’s framing in Mozambique Since 2001 Mozambique has been going through a set of reforms in the GFP area; 2002: Implementation of the integrated financial management system: SISTAFE improved GFP indicators; QAD agreed between PAPs and the government of Mozambique

4 QAD’s framing in Mozambique QADs target is to evaluate the Government’s performance within the implementation strategy of PARPA II; QAD (PAF) is essentially made of 49 indicators; There is also the QAD of PAP’s indicators which consists of assessing the efficiency of foreign support carried out by an independent consultant.

5 2. Monitoring framing of PARPA II 29 working groups distributed among 4 pillars, transversal subjects and PAP’s assessment; Group leaders and Pillar leaders are appointed by the Government and by the participating partners. Main subjects of MDP are appointed for all the groups to support the process and facilitate coordination. Groups are composed of government representatives, partners and civil society. Main supporting documents: PES 2006;BdPES 2006; OE 2006; REO 2006; PARPAII, Aide Memoire 2006; Sectors Documents. The assessment also includes the Macroeconomic Policy Analysis and the Public Finance Management System.

6 2. Monitoring framing of PARPA II Governação -Reforma do Sector Público -Descentralização - Reforma da Justiça, Legalidade e Ordem Pública Desenvolvimento Económico - Sector Financeiro -Sector Privado - Agricultura - Estradas, Telecomunicações e Caminhos de Ferro - Energia Capital Humano - Saúde - Educação - Água e Saneamento - Acção Social -Habitação -Accão Social Assuntos Transversais (Género, Ambiente, HIV/SIDA, Desminagem, Segurança Alimentar e Nutricional, Calamidades, Ciência e Tecnologia, Desenvolvimento Rural)

7 3. Monitoring and Assessment Cycle of PARPA, PES and OE Grupo de Relatórios e QAD PILAR Consistência e Controle de Qualidade Redacção/Di scussão 1 º Esboço do AM Redacção/Di scussão 1 º Esboço Final do AM 02 Março27 Março31 Março 25 Abril 06 Abril Encontros “PAFCOG” conjuntos: 02 Março (lançamento) 13 Abril (discussão dos “assuntos levantados”) 20 Abril (discussão e comentários finais sobre o 1º esboço) Outros Encontros 16-28 Março Missão do FMI 17 Abril (diálogo político) 30 Abril (fecho do processo)

8 4. QAD’s Results - 2006 AtingidoNão Atingido c/Progresso Não Atingido Macroeconomia, Pobreza e GFP 930 Boa Governação480 Desenvolvimento Económico 373 Capital Humano631 Assuntos Transversais010 TOTAL22 4

9 4.1 Macro-economy, Poverty and GFP POSITIVE ASPECTS Good macroeconomic performance. Decrease of the risks within the GFP system. The e-Sistafe results in a better funds flow. Good budgeting performance (65.1% for the priority sectors). Targets for IGF audits and TA Metas para auditorias de IGF e TA exceeded. Progress in the procurement’s reform. Development of the ATM. WORRIES / HANDICAPS Need to increase public revenue of the exploration; … natural trading resources

10 4.2 Governance POSITIVE ASPECTS A move forward in decentralization. Improvement in the provision of judicial services: formulation of the vision and integrated strategic plan in the Justice sector and approval of the anticorruption governmental strategy. WORRIES / HANDICAPS Need of a salary reform. Need to clarify documentation and responsibilities between central, provincial and district levels. Lack of advancements in the municipalisation and decrease proportion of funds as far as the OE is concerned.

11 4.3 Economic development POSITIVE ASPECTS Positive results in the simplification of registering new companies. Submission to AR the reviewed labour act. Increase of the rural electrification network. Increase of the road network to a good or reasonable condition. WORRIES / HANDICAPS Proposal that the labour act is still perceived as weak. Debt accumulation in the form VAT refunds. Low performance of agriculture regarding QAD’s targets, in spite of the positive agricultural increase.

12 4.4 Human Resources POSITIVE ASPECTS Good performance in the expansion of the health and education networks: Increase of TARV supply (although the target has not yet been achieved). Increase in the access to primary schooling. Improvements on water supply. Over fulfilment of targets in the social resource sector. WORRIES / HANDICAPS Quality of services, e.g. teacher/student ratio. Target of institutional births not attained. *AIDS/HIV is still a worrying factor, mainly the low level of prevention of vertical transmission, although the number of health units has improved.

13 5.QAD’s Indicators Matrix Pilar / ÁreaObjectivo Realizações (Acções) Responsáve l Indicador [Fonte de Verificação] Meta 2007 MACROECONOMIA E POBREZA Análise de Pobreza e Sistemas de Monitoria Disponibilizar a todos os intervenientes chave informação adequada, exacta, desagregada e atempada sobre a implementação do PARPA (par. 621 & 622) Realização de pelo menos um Observatório da Pobreza Provincial (OPP) em cada província MPD Nº de Províncias com OPP`s realizados [Sínteses dos OPP no website do OP e na DNP] 11

14 5.QAD’s Indicators Martrix

15 6. OE’s performance indicators Budget’s Credibility: realistic and implemented as intentioned; Scope and OE’s transparency: the budget and the expectation of tax risks are all-inclusive and the general public has access to the fiscal and budget data.

16 OE’s performance indicators Budgeting based on policies: the budget is prepared based on the government policy; Control in the budget performance: The budget is implemented in an orderly and predictable fashion and there are mechanisms for the monitoring and management of public funds;

17 OE’s performance indicators Accounts, register and reports – Information and register are produced, kept and disseminated for monitoring purposes in the process of decision making, management and reports. Audit and external analysis – there are tools for analysis to public accounts and relevant follow-up by the official entities.

18 Budget’s credibility indicators

19 PI-5Classificação do orçamentoB PI-6Abrangência da informação incluída na documentação do orçamento B PI-7Dimensão das operações do Governo não reportadas C+ PI-8Transparência das relações fiscais inter-governamentais C+ PI-9Vigilância do risco fiscal agregado de outras entidades do sector público D+ PI-10Acesso público à informação fiscal chave C 6. 1 Scope indicators and budget’s transparency

20 7. Assessment of PAP’s performance Improvement in using the public finance management system Improvement in the amount of support to the OE (as % of total support) although far from target. Low performance in the short-term, with 5 countries not complying with one or several Memo’s Provisions. Target for the integration of funds in OE not achieved, but recent improvements suggest it will be achieved in 2007.

21 Thank you very much.