public finance management reform: georgia’s...
TRANSCRIPT
Presented by
NIKOLOZ GAGUA, Deputy Minister, Ministry of Finance of Georgia
Public Finance Management Reform: Georgia’s PathBreakout Session B: Managing Public Resources
BUILDING EFFECTIVE, ACCOUNTABLE, AND INCLUSIVE INSTITUTIONS
EUROPE AND CENTRAL ASIA REGIONAL GOVERNANCE CONFERENCE
Public Finance Management (PFM) Reform - Achievements
2007•MTEF - Basic Data and Directions document (BDD Document) strengthened
2008 •GFSM 2001 Classification is Operational
2009•New Budget Code approved
•Program Budget Piloted
2010
•Program Budget Piloted
•E-Budget Designed and piloted
•E-Procurement platform and dispute review board created
2011
•E-Budget is integrated with E-Treasury
•Program Budget Piloted and BDD Coverage extended
2012
•Program Budget on State Budget Level Introduced
•Reporting on LEPL revenue integrated in e-PFMS
2013•Program Budget on Municipal Level Introduced
2014
•Organic Law on “Economic Freedom” introduced
•Fiscal Governance Practice of Georgia and EU standards reviewed and action plan developed
2015
•All budget organizations (Including Local Government) are fully integrated in the System of Treasury Accounts and e-PFMS
•Mid-term Action Plan Methodology developed and piloted
•2016 State Budget Citizen’s Guide Published
BUILDING EFFECTIVE, ACCOUNTABLE, AND INCLUSIVE INSTITUTIONS
EUROPE AND CENTRAL ASIA REGIONAL GOVERNANCE CONFERENCE
Public Finance Management (PFM) Reform - Achievements
2016
•State Budget package expands coverage of performance related data and information
•Mid-term costed Action Plans are introduced in all line Ministries
•Public Investment Management (PIM) Reform - PIM Guideline and Methodology was adopted
2017
•Public Discussions on Fiscal Governance and Fiscal Discipline
•Public Investment Management system Piloted
•PEFA Self-Assessment prepared;
•FTE and Fiscal Rules report prepared by IMF; Action Plan 2017-2021 prepared;
•2016 State Budget Annual Report extends coverage of Performance related data.
2018•PIMA Assessment prepared (IMF);
•MTBF – coverage of information for BDD preparation process is increased;
➢ PFM coordination Council is operational and involves Parliament, MOF, State Audit Office, Public
Procurement Agency, Civil Society and Donor organizations. The council is in charge of approving the PFM
reform mid-term strategy and annual action plans and performance reports;
➢ Georgia has been supported on this journey by the International Donor organizations, not only financially
but also with technical expertise. This plays a vital role in the capacity-building process and in ensuring that
the reforms go into the right direction.
BUILDING EFFECTIVE, ACCOUNTABLE, AND INCLUSIVE INSTITUTIONS
EUROPE AND CENTRAL ASIA REGIONAL GOVERNANCE CONFERENCE
Public Administration Reform
Georgia initiated the Public Administration Reform with support of the EU and OECD/SIGMA in 2014. The Public Administration Reform Roadmap 2020 was adopted in 2015. The document encompasses an Action Plan for 2015-2016 and 2017-2018 and the very last one which covers activities for 2019-2020.
Similar to the Reform Roadmap, the Action Plan encompasses 6 main components:
❑ Policy Development and Coordination
❑ Human Resources Management
❑ Accountability
❑ Public Finance Management
❑ Service Delivery
❑ Local-Self Government
Public Administration Reform is coordinated by Administration of Government of Georgia through the PAR council established under the AoG of Georgia.
BUILDING EFFECTIVE, ACCOUNTABLE, AND INCLUSIVE INSTITUTIONS
EUROPE AND CENTRAL ASIA REGIONAL GOVERNANCE CONFERENCE
E-PFMS – Public Finance Management Electronic System
BUILDING EFFECTIVE, ACCOUNTABLE, AND INCLUSIVE INSTITUTIONS
EUROPE AND CENTRAL ASIA REGIONAL GOVERNANCE CONFERENCE
Open Budget Index - Georgia 2006-2017
34
53 55 55
66
82
0
23
45
68
90
2006Minimal
Transparency
2008Limited
Tranparency
2010Limited
Tranparency
2012Limited
Tranparency
2015Substantial
Transparency
2017Extensive
Transparency
Source: OECD CESEE SBO, May 25, 2018 “Budgets as Bridges” Insight from the Open Budget Survey 2017, By Elena Mondo, Senior Technical Advisor, IBP
BUILDING EFFECTIVE, ACCOUNTABLE, AND INCLUSIVE INSTITUTIONS
EUROPE AND CENTRAL ASIA REGIONAL GOVERNANCE CONFERENCE
Open Budget Index - Georgia 2017
81 - 100Extenstive
61 - 80Substantial
41 - 60Limited
21 - 40Minimal
0 - 20Scant or
None
5
22
42
2027
Georgia ranked 5th out of 115 countries
with the score 82
Open Budget Index 2015 - 66
Public Participation
46
Budget Oversight
73 100
Open Budget Index 2017 - 82
Public Participation
22
Budget Oversight
74
(Overall average score – 25)
(Overall average score – 12)
2017 average score - 45
BUILDING EFFECTIVE, ACCOUNTABLE, AND INCLUSIVE INSTITUTIONS
EUROPE AND CENTRAL ASIA REGIONAL GOVERNANCE CONFERENCE
Results
➢ MTBF system strengthened;
➢ Longer Term Forecasting – Based on good practice of MTEF long term projection and forecasting is
introduced;
➢ Fiscal Discipline – Existing Fiscal Rules reviewed with IMF TA support and respectfully updated;
➢ Public Investment Management (PIM) System – gradually implementation in all municipalities and
spending units;
➢ Performance Based Budgeting and Program Efficiency Check System;
➢ Civil Engagement - Effective Instruments for Civil Engagement are in place.
Questions?
THANK YOU!