Public financial Management Analytical and Advisory Assistance
Strengthening Public Financial Management (PFM) at central and subnational level is essential for stronger governance, improved outputs from public resources and effective expenditure management. This Trust Fund is a vehicle for development partners to drive PFM reform forward by strengthening the capacity to implement PFM reforms.
Economic and financial policy
- International Development Agency
|Background||Vietnam has adopted a number of reforms to modernize its PFM systems, which would, with proper implementation and enforcement, significantly contribute to greater efficiency in public spending. This Public Financial Management Analytical and Advisory multi-donor Trust Fund is a programmatic Trust Fund, supporting the implementation of some aspects of these reforms at central and subnational level. The Trust Fund provides technical assistance activities in the forms of consultancy services, training, workshops, peer learning activities, and training for key staff, including on-the-job training.|
|Objectives||The Program is expected to have a significant impact on the ability of PFM systems in Vietnam to play as positive a role as possible in supporting the improvements in the efficiency and effectiveness of public expenditure that Government strategies aim for. As enforcement of the necessary reform steps is slow, comprehensive capacity building at all levels is still required if the reforms are to have the desired effect.|
|Medium-term outcomes||Raising of standards of public financial management in a measurable way in four key areas, where comparison to international standards suggest that improved systems and practices are critical in supporting improvements in the efficiency and effectiveness of public expenditure: Pillar 1: Linkages between plans and budgets Pillar 2: Effectiveness of budget execution controls Pillar 3: Production of quality fiscal information Pillar 4: Effectiveness of systems for achieving fiscal stability and identifying and managing fiscal risks In order to measure outcome achievement it is expected that the program will contribute to an improvement in the PEFA indicators, which are related to each pillar, to at least a B rating at the end of this program.|
Expected results: Output component 1: MTEF and improved forecasting techniques developed, information on in-year and multi-year commitments collected, realistic and regular process of review by sector/cross-cutting themes established, linkages between new investment planning process and realistic budget plans improved.Outputs component 2: consistent commitment capturing, improved, legal framework for cash management implemented, overall level of arrears reduced, framework for strengthening empowerment of Service Delivery Units developed.Output component 3: system of budget classification and reporting of executing improved, production and supply of high quality financial information, production of financial statements the meet international standards.Output component 4: production of whole-of Government consolidated financial statements, regular reports to policy makers on overall fiscal risks and consolidated risk review.
Results from previous phases: The previous program, PFM MDTF II, supported building blocks for different individual PFM reforms. It has achieved some important results with regard to strengthening government’s institutional capacity for increased coordination and transparency, revenue management and effective and efficient expenditure management. Key outputs from the PFM MDTF II are: reform strategy developed and prioritized, Roadmap for public sector accounting developed, modern cash and risk management developed, state accounting function developed, tax policy measures reviewed, roadmap for bond market development produced, model for asset management system developed, monitoring system for oversight of public corporations’ financial performance developed. The support of PFM MDTF II has helped to introduce certain international PFM good practices and induced new ways of thinking on managing public expenditures. However, reforms initiated are still at an early stage and more time and support efforts are needed.
|Directorate/federal office responsible||
|Budget||Current phase Swiss budget CHF 7'000'000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 14'724'000|
|Project phases||Phase 1 01.07.2015 - 31.12.2020 (Current phase)|