2008年-世界发展银行全球_Argentina___Country_Financial_Accountability_Assessment_91页_7mb

Argentina Country Financial Accountability Assessment Summary

Core Content

This document presents a comprehensive assessment of Argentina's Public Financial Management (PFM) systems and practices, focusing on institutional capacity, legal frameworks, budget formulation, execution, accounting, financial reporting, debt management, and control systems. It was prepared by the World Bank (WB) and the Inter-American Development Bank (IDB) based on two missions in 2005 and 2006.

Main Findings

• PFM Systems and Practices: Argentina's PFM systems and practices show a mix of strengths and opportunities for improvement. The administration systems are well-designed, with strong legal support and technical human resources. However, PFM performance is still below expectations.
• Legal Framework: The legal framework for PFM is comprehensive and covers all relevant areas of budget management and fiscal functions. Key laws include the Constitution, the Law of Financial Administration and Control Systems (LAF), and the Fiscal Responsibility Law (FRL) of 2004.
• Budget Coverage: In 2006, Argentina maintained 87% of total expenditures of the National Non-Financial Public Sector (NFPS) under the same legal regime. The remaining 13% includes public entities outside the National Public Administration (NPA) and "fiduciary funds."
• Budget Preparation: The Ministry of Economy and Production (MECON) coordinates budget preparation, integrating current and capital expenditures. However, the process lacks strategic planning tools and has not fully realized macroeconomic projections.
• Budget Presentation and Classification: The budget is comprehensive and detailed, but does not include consolidated information on public expenditures, especially from fiduciary funds and decentralized organisms.
• Policy-Based Budgeting: There is a need to establish a clearer link between strategic planning and budgeting. The Budget Evaluation Directorate (DEP) has developed tools, but they are not fully utilized for strategic budgeting.
• Result-Oriented Budgeting: The Under-secretariat of Budget from MECON is working on strengthening result-oriented budgeting through performance indicators and the use of web-SIDIF. Some spending units have started using performance indicators for specific programs.
• Budget Approval and Execution: Congress plays a role in budget approval and oversight, but its participation has declined due to emergency decrees and legislative changes. The National Budget Office (NBO) and the Single Treasury Account (CUT) are key to budget execution, although there are gaps in the system.
• Accounting and Financial Reporting: The national accounting system is single, unique, and uniform. The General Accounting Office (GAO) oversees the system, but there are deficiencies in the consolidation of financial statements and the inventory of fixed assets.
• Debt Management: Argentina restructured its debt after the 2001 crisis, achieving a high acceptance rate and reducing the debt-GDP ratio. However, there is a need for a consolidated public debt registry and better fiscal risk assessment.
• Control Systems: Internal control is based on the LAF and includes financial management and ex-post internal audits. The system is fragmented, especially for fiduciary funds. The external audit by AGN is ex-post and aligned with international standards, but lacks a risk-adjusted approach. Congressional budget oversight is limited, and the control environment needs improvement in terms of compliance, governance, and incentives.

Key Information

• Currency Equivalent: 1 US$ = 3.10 Pesos
• Fiscal Year: January 1 – December 31
• Main Institutions:
  • WB: Vice President Pamela Cox, Country Director Pedro Alba, Manager Roberto Tarallo, Task Manager Alexandre Arrobbio
  • IDB: Vice President Santiago Levy, Manager Mario Marcel, Division Chief Vicente Fretes, Task Manager Gerardo Reyes-Tagle
• Legal Framework:
  • Constitution
  • Law of Financial Administration and Control Systems (LAF)
  • Fiscal Responsibility Law (FRL) of 2004
• Key Budget Systems:
  • SIDIF: National Integrated Financial Management System
  • CUT: Treasury Single Account
• Key Legal Abbreviations:
  • LAF: Law of Financial Administration and Control Systems
  • FRL: Fiscal Responsibility Law
  • TSA: Tax Sharing Agreement
  • CUT: Treasury Single Account
  • SIDIF: National Integrated Financial Management System
• Key Financial Instruments:
  • GFS: Government Financial Statistics
  • PIA: Public Investment Account
  • FF: Fiduciary Funds
• Key Control Bodies:
  • AGN: Auditor General's Office
  • SIGEN: Internal Audit Agency of the Executive Power
  • IAU: Internal Audit Unit
• Debt Management:
  • Debt-GDP ratio slightly over 50% by the end of 2007
  • Debt restructuring with IMF and Banco de la Nación Argentina
  • Use of SIGADE for debt registration, but no consolidated public debt registry

Conclusion and Recommendations

• Conclusion: Argentina has made significant progress in PFM since the 2001 crisis, but there are still major challenges to address.
• Recommendations:
  • Standardize budget execution systems for 100% of expenditures
  • Improve strategic planning and budget allocation
  • Strengthen internal control and audit systems
  • Enhance transparency and accountability in the public sector
  • Consolidate public debt information and improve fiscal risk assessment
  • Implement a risk-adjusted audit approach
  • Improve the control environment through better compliance, governance, and incentives

Annexes and References

• Annex 1.1: Argentina's macro-economic indicators, 2001-2006
• Annex 1.2: Summary of the Fiscal Responsibility Law (FRL)
• Annex 1.3: World Bank Fiduciary Action Plan
• Annex 2.1: Comprehensiveness of Argentina's PFM legal framework
• Annex 3.1: 2006 budget coverage
• Annex 3.2: 2006 fiduciary funds
• Annex 3.3: Budget credibility
• Annex 3.4: Overview of performance budgeting
• Annex 6.1: ONCP organization chart
• Annex 6.2: Multilateral debt: budgeted vs. actual, 2003-2005
• Annex 7.1: COSO framework
• Annex 7.2: Performance of supreme audit institution reforms in Eastern European countries
• Annex 7.3: Seminar on control environment
• Bibliographical References: List of sources used in the assessment
• List of Persons Interviewed: Individuals and institutions consulted during the assessment process