2001年-世界发展银行全球_Mozambique___Public_Expenditure_Management_Review_163页_9mb

Mozambique Public Expenditure Management Review Summary

Core Content

This report, titled Mozambique Public Expenditure Management Review (PEMR), outlines the challenges and opportunities in improving fiscal management and public expenditure efficiency in Mozambique. It emphasizes the need for structural reforms in budget formulation, execution, and evaluation, as well as the importance of intergovernmental fiscal relations and decentralization.

Main Views and Key Information

1. Aggregate Fiscal Analysis

• Fiscal Recovery: Mozambique's recovery over the past decade was supported by prudent fiscal policies, substantial external assistance, and structural reforms such as privatization, tax reform, and trade liberalization.
• Deficit Trends: Despite progress, fiscal imbalances persist, particularly high deficits before grants. From 1995 to 1999, the overall budget deficit before grants remained around 13% of GDP.
• Expenditure Expansion: Expenditures increased significantly, especially in 2000 (16% real increase), driven by factors such as bank recapitalization, civil service wage bill increases, and social spending enabled by HIPC debt relief.
• Fiscal Sustainability: The current fiscal position is unsustainable. Without adjustment, it may lead to higher debt-to-GDP ratios and threaten macroeconomic stability and growth. The fiscal scenario under the PARPA (Programa de Acção Para a Redução da Pobreza Absoluta) suggests a significant fiscal adjustment could lead to sustainability by 2005.
• External Grants: While external assistance has been crucial, it is unlikely to drop significantly in the short term. However, relying on it long-term is risky, as grants are expected to converge to around 4% of GDP in Sub-Saharan Africa.

2. Contingent Liabilities and Fiscal Risks

• Banking Sector Risks: The recent collapse of Banco Austral (BA) and ongoing issues with Banco Comercial de Moçambique (BCM) highlight the need for stronger banking supervision and a reduction in state involvement in the financial sector.
• Insurance and Pension Schemes: The state-owned insurance company EMOSE needs an independent audit and supervision. There are concerns about under-funding in the civil service pension scheme and the National Institute of Social Security (INSS).
• Government Guarantees: These should be regulated and subject to strict limits to prevent moral hazard.

3. Intergovernmental Fiscal Relations

• Decentralization: Mozambique is pursuing decentralization and deconcentration to improve service delivery and fiscal management. Municipalities have been granted political, administrative, and fiscal autonomy.
• Fiscal Responsibilities: Provincial and district levels have limited fiscal responsibilities compared to the central government, with provincial own revenues at less than 3% of national revenue and capital expenditures around 3% of the national capital budget.
• Dual Supervision: Provincial directorates are currently under dual supervision from their sectoral ministry and the governor, which is inefficient and should be reformed.
• Districts: District budgets lack legal standing, and their capacity is limited. A clear definition of functions and responsibilities is needed before assigning resources.

4. Budget Formulation and Reform

• Current Issues: The budget system is incomplete, lacks transparency, and uses an outdated functional classification. It also suffers from weak internal controls and poor accounting procedures.
• Reform Needs: The budget formulation process should be streamlined, and the focus should shift from funds to information. The report recommends:
  • Defining specific criteria for autonomous institutions and determining which user fees should continue.
  • Introducing a more detailed functional classification based on the UN COFOG system.
  • Formulating and executing the budget in current prices.
  • Strengthening the Medium Term Fiscal Framework (MTFF) as a tool for budget planning and public accountability.
  • Replacing the investment plan (PTIP) with more integrated approaches.
  • Enhancing the role of Parliament in budget oversight and monitoring.

5. Budget Execution

• Weaknesses: Budget execution is hampered by poor accounting, partial reporting, and weak cash management. The accounting system is outdated and inefficient.
• Recommendations:
  • Improve public accounting by introducing a more transparent and detailed system.
  • Strengthen cash management through a Treasury Single Account (TSA) model.
  • Enhance reporting mechanisms and ensure that the budget is executed efficiently.

6. Budget Evaluation and Audit

• Internal and External Audits: These are essential for improving accountability and compliance. The report highlights the need for better internal audit systems and external audits to ensure transparency.
• Budget Evaluation: This should be integrated into the overall fiscal management system to ensure that public spending aligns with policy objectives and is efficient and effective.

7. Toward a Modern Public Finance Management System

• Legal Framework: A new Public Finance Management Law should be enacted to provide a modern and transparent legal basis for fiscal management.
• Integrated Financial Management Information Systems (IFMIS): These systems should be implemented to improve transparency, efficiency, and accountability in public finance management.
• Action Plan: A comprehensive action plan is proposed to enhance the efficiency, transparency, and accountability of the budget management system, with a focus on technical capacity building and institutional reforms.

Conclusion

• Fiscal Adjustment: A gradual fiscal adjustment is necessary to ensure long-term sustainability and macroeconomic stability.
• Decentralization: Municipalities need to be supported in their fiscal responsibilities, with a focus on capacity building, transparency, and accountability.
• Reform Priorities: The report identifies six priority areas for reform, including improving budget formulation, execution, and evaluation, as well as strengthening intergovernmental fiscal relations and public finance management systems.

Key Recommendations

• Implement a more detailed and transparent budget classification system.
• Strengthen the legal framework for public finance management.
• Reform the budget formulation process to enhance efficiency and alignment with policy goals.
• Improve cash management and accounting systems.
• Enhance internal and external auditing and budget evaluation mechanisms.
• Support municipalities with capacity building and clear mandates.
• Ensure that donor-funded activities are transparently reported in the budget.