Governance

Public Financial Management

The challenge is to control government spending and make agencies operate efficiently and effectively.

Key concepts include

• revenue administration
• public expenditure management: budget preparation & execution, aggregate fiscal discipline, aggregate expenditure
• procurement
• accounting
• internal control
• intergovernmental fiscal relations

Review ADB Publications on Public Financial Management.

Loans

Cambodia

Financial Sector Program (subprogram II)

Promoting the development of a sound market-based financial system to support enhanced mobilization and sustainable economic growth by establishing a foundation for the banking and insurance sector as well as financial market development. The program will focus on enhancing banking intermediation and public confidence; establishing legal and regulatory frameworks for insurance development; laying foundation for the development of interbank and money markets; and developing financial market infrastructure.

India

Modernizing Government and Fiscal Reform in Kerala

Supporting macroeconomic and structural reforms in a selected state to support higher economic growth. To improve efficiency in the public sector and allow greater participation of the private sector in infrastructure development. The loan will also provide support for the implementation of the government's Modernizing Government Program.

Maldives

Strengthening Public Accounting Systems

Upgrading public accounting system (PAS) in improving the efficiency, enhancing accountability, and contributing more effectively to public sector management as well as development of effective fiscal operations and macroeconomic policy.

Nepal

Public Sector Management Program Loan

Improving public sector management through strengthening of policies and institutions. Assistance is envisaged in

• institutional capacity building to improve efficiency in government spending, and increase accountability and transparency in the budget process
• development of legal and administrative framework for strengthening public financial management
• introduction of reforms in selected public enterprises

Tonga

Economic and Public Sector Reform Program

Ensuring overall macroeconomic stability and to enhance private sector-led economic growth through

• achieving fiscal balance
• improving the efficiency and effectiveness of service delivery by the public sector

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Technical Assistance

Bhutan

Strengthening the Debt Management Capacity of the Dept. of Aid and Debt Management

Strengthening the capacity and efficiency of Bhutan's aid and debt management system by the installation and usage of an enhanced computer-based database supported by built-in control functions with the Dept. of Aid and Debt Management.

Cambodia

Strengthening Public Financial Management

Modernizing two key components of Cambodian public financial management: fiscal management and audit.

China, People's Republic of

• Fiscal Management and Operational Resource Support

  Establishing a strategy for rationalization of expenditure allocation to ensure fiscal efficiency and effective coordination of Government's fiscal and monetary objectives; initiate the implementation of a comprehensive effort to phase out selective interventions for specific local financial problems; and strengthen the internal control and audit mechanism of the fiscal agencies.

• Strengthening External Debt Management

  Assessing the current policy, institutional, legal and regulatory arrangements for external debt management, formulate debt management guidelines that are consistent with international practices and develop proposals to consolidate all public debt management (PDM) functions into single unified framework.

• Strengthening the Government Auditing System

  Assisting the National Audit Office of the PRC (CNAO) in formulating government auditing standards and procedures, and design and implement an audit-training program to promote full and consistent adherence to such auditing standards and procedures by all CNAO auditors.

• Implementation of the Tendering and Bidding Law and Related Regulations

  Helping the Government bring all public procurement under national law, ADB is helping implement the Tendering and Bidding Law.

• Formulation of Government Procurement Law

  Establishing a sound legal framework to develop a Government Procurement Law.

India

• Preparing the Assam Governance and Public Resource Management Program

  Improving and accelerating development management in Assam against the background of the Medium-Term Fiscal Reform Program (MTFRP) MOU by helping the Assam government design and sequence priority public resource management and governance reforms, and strengthen its implementation capacity to implement them. (July 2003)

• Budget Procedure Reform, Computerization, and Expenditure Management

  Strengthening Government of Assam's (GoA) capacity to implement MTFRP by supporting the

  • establishment of a legislative framework for improving the state’s fiscal management and fiscal reporting
  • improvement of the state’s planning and budgeting process
  • strengthening of the GoA’s expenditure management and control
  • improvement of public sector service delivery by supporting the preparation of a functional assessment of the state administration, and the development and evaluation of options for its organizational restructuring and rightsizing
  • exploration and piloting of e-governance options for improving staff relations, and procurement and disbursement processes. (June 2003)

• Enabling Environment for and Restructuring of Asset Reconstruction of companies in India

  Assisting in the creation of a specialized entity for handling problem loans to reduce non-performing assets in the Indian financial system, and accelerate the debt recovery process.

• Support for Improvements in the Accounting System of the Calcutta Municipal Corporation

  Improving the financial management capacity of the Calcutta Municipal Corporation (CMC) that will lead to adequately trained CMC staff and improved availability of reliable financial data.

Indonesia

Strengthening Procurement Policies, Legal Framework, and Institutions

Establishing a National Public Procurement Office to set public-procurement policy, and set and monitor national standards.

Kyrgyz Republic

Strengthening Capacity in the Office of the President (Phase 2)

Strengthening Economic Policy Department's capacity to track economic developments and manage economic policy with particular focus on the requirements of the ongoing macroeconomic stabilization and structural reform program; and the implementation of the Comprehensive Development Framework strategy.

Lao People's Democratic Republic

• Capacity Building in Project Financial Management

  Enhancing the Government's project financial management with respect to Official Development Assistance (ODA) funds, by

  • improving the national budget process and fund flow mechanism, and
  • strengthening institutional capacity to manage financial activities relating to ODA-funded projects.
  
  

• Institutional Strengthening of Public Investment Management

  Strengthening the institutional capacity of the Government for public investment management to enhance the efficiency of public investment and achieve sustainable economic development and poverty reduction.

• Institution Strengthening of the National Audit Office

  Strengthening the state audit function in the Lao PDR by building the capacity of National Audit Office.

Maldives

• Strengthening of Debt Management

  Promoting better management of existing and future debt portfolios by reviewing the debt structure, legal and institutional framework, and building a plan to strengthen the system. (October 2003)

• Capacity Building for the Maldives Public Accounting System

  Defining requirements and formulating a design for a public accounting system needed to improve public finance management.

• Revenue Diversification

  Developing a view of and preparing an implementation plan for introducing Business Profit Tax and Property Rentals Value Tax and in enactment of legislation and regulations.

Marshall Islands

Strengthening the Economic Policy, Planning and Statistics Office

Assisting the RMI’s long-term economic development and poverty reduction by means of institutional development and increased local stakeholders participation, leading to effective budget and policy formulation, implementation, and monitoring, and production of social and economic statistics.(October 2003)

Micronesia

Capacity Building in Public Sector Financial Management

Assisting the Government in the actual transformation process and provide the necessary legal and financial advisory inputs. The TA will include institutional capacity building to support the effective implementation of a new FMIS and the performance based public finance management.

Mongolia

• Establishment of a Central Procurement Monitoring Office

  Establishing a Central Procurement Monitoring Office to ensure compliance with procurement laws and procedures.

• Strengthening Public Sector Administration and Financial Management

  Enhancing the efficiency and quality of the services provided by the public sector through strengthening overall standards at all levels of public administration including central ministries, budgetary bodies and enterprises and provincial /local level administrations. TA will support the

  • implementation of the Public Sector Management and Finance Law to increase transparency and accountability of public sector financial output
  • undertaking a review of the core and non-core functions of the key budgetary bodies
  • formulating the second phase of public sector governance reforms to pursue the initiatives adopted under the Governance Reform Program (GRP)

Nepal

• Public Sector Management Program

  Focus on reforms related to

  • strengthening the fiscal position of the Government
  • facilitating the Government’s disengagement from public enterprise (PE) management and ownership
  • strengthening public and corporate sector governance. (June 2003)

• Strengthening Institutional Capacity for Public Debt Management

The project has three objects

• strengthen the legal, regulatory, and institutional framework for public sector borrowing;
• improve its capacity for formulating debt policy and for planning
• strengthen debt accountability and transparency by improving debt recording and accounting.

Pakistan

• Gender Reform Program

  Strengthening the capacity of the Government to reform institution and systems dealing with the issues of gender and development. The TA will support the Ministry to formulate a gender reform action plan for the Government within the framework of the National Plan for Action.

• Transparency in Financial Transactions

  Enhancing transparency in financial transactions through the development of an efficient and effective regime for corporate debt recovery and restructuring.

Philippines

Capacity Building for Procurement

Assessing the constraints facing public sector procurement and recommended measures to strengthen responsible institutions. A key output was an Executive Order by the President in late 2001 that establishes national standards for public-sector procurement and assigns responsibilities for monitoring and enforcement.

Sri Lanka

• Public Sector Resource Management

  Preparing a project that will assist the government to establish an autonomous Revenue Authority, combining the existing Inland Revenue and customs Departments; and implement streamlined budgeting and expenditure control processes within the Ministry of Finance.

• Strengthening Public Expenditure Management Systems

  Modernizing key components of the Sri Lankan public expenditure management system to improve fiscal discipline, allocation of resources consistent with policy priorities, and operational management.

Thailand

Strengthening Revenue and Expenditure Management systems in the Fiscal Policy Office

Strengthening the capacity of FPO to gather, analyze and interpret information for improved management in Thailand.

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