2013年-世界发展银行全球_Republic_of_Panama___Public_Expenditure_and_Financial_Accountability_141页_2mb

Panama Public Expenditure and Financial Accountability (PEFA) Report Summary

Core Content

This report evaluates the Public Financial Management (PFM) system of Panama, focusing on its performance in budget credibility, comprehensiveness and transparency, policy-based budgeting, predictability and control in budget execution, accounting and reporting, external scrutiny and audit, and donor practices. The assessment is conducted by the World Bank and the Inter-American Development Bank, and it aims to support the Government of Panama (GoP) in its reform and modernization efforts.

Main Findings

Budget Credibility

• Strengths:

  • Overall expenditure is within the limits approved by the National Assembly (NA).
  • Budget procedures are reviewed and approved in a timely manner.
  • Information on government expenditure is accessible to the public.

• Weaknesses:

  • Significant underestimation of revenue forecasts.
  • Budget formulation and execution lack clear standards, leading to inconsistencies.
  • Frequent budget modifications make it difficult to compare executed budgets with original ones.
  • There is no cost calculation for sectoral policies, which prevents linking multiyear budgets with sectoral spending.

Comprehensiveness and Transparency

• Strengths:

  • All government funds are registered in the budget, regardless of type or source.
  • Payments must be previously registered in the budget and executed through budget procedures.

• Weaknesses:

  • Accrued expenditures are not always budgeted.
  • Budget proposals lack critical information, such as budget policies and macroeconomic factors.
  • There is no transparency in transfers to sub-national governments.
  • The NA does not address fiscal policies or medium-term priorities, focusing only on expenditure details.
  • The procurement system (PanamaCompra) does not fully cover all MDAs.

Policy-Based Budgeting

• Strengths:

  • A Government Strategic Plan and a Social and Fiscal Responsibility Law exist.
  • These laws require multiyear projections and promote flexible budget management.

• Weaknesses:

  • There is no linkage between strategic plans and budget needs.
  • Multiyear projections are not used to support sectoral or institutional expenditure plans.
  • The budget preparation system is not integrated into the national financial administration system (SIAFPA).

Predictability and Control in Budget Execution

• Strengths:

  • The internal and external debt registries are complete and updated regularly.
  • The payroll system is reconciled through an ex-ante review by the Comptroller General of the Republic (CGR).
  • The cash flow forecast and monthly reports are available.

• Weaknesses:

  • There is no reliable information on the frequency of adjustments or their transparency.
  • Tax administration suffers from inconsistencies in the contributor registry, an ineffective sanction system, and delays in tax collection and transfer.
  • There is no clarity in the time framework for transferring funds to the Treasury.

Accounting, Recording, and Reporting

• Strengths:

  • Complete monthly information on primary service provision units is available.
  • Budget execution reports are periodically presented to the NA, although they are of low quality.

• Weaknesses:

  • Financial statements are not subject to external audit.
  • There are significant omissions in accounting reports regarding assets, expenditures, and account balances.
  • There is no single account system due to the existence of over 6,000 accounts outside the Treasury.

External Scrutiny and Audit

• Strengths:

  • The CGR performs ex-ante control over the budget.
  • The CGR prepares an annual report for the NA.

• Weaknesses:

  • There is no annual audit report of government financial statements.
  • The NA does not address fiscal policies or the fiscal framework.
  • The system of internal audit does not adhere to professional standards.

Donor Practices

• Main Donors:

  • Inter-American Development Bank (IADB)
  • World Bank (IBRD)

• Weaknesses:

  • Only a small percentage of donor financial assistance is managed through national procedures.
  • The extent of direct budget support is not well predicted.

Key Issues and Recommendations

• Budget Predictability: The frequent budget modifications and lack of clear standards undermine budget credibility and make it difficult to align with international best practices.
• Transparency in Transfers and Procurement: The lack of clear rules for transfers to sub-national governments and the limited coverage of procurement processes in PanamaCompra affect transparency.
• Accounting and Reporting: The absence of a single account system and incomplete financial statements hinder the consolidation of public financial information.
• Internal Audit: The internal audit system does not follow professional standards, which compromises the integrity of financial management.
• Tax Administration: Inefficiencies in the tax system, including delays in collection and reconciliation, affect the overall financial performance.

Reform Process

• The GoP is undergoing an important institutional reform to improve public financial management.
• The Ministry of Economy and Finance (MEF) is leading the preparation of a comprehensive public sector reform agenda.
• This PEFA report aims to support the GoP in its reform efforts by providing a baseline for assessing current performance and future improvements in public financial management.

Conclusion

While Panama has made progress in certain aspects of PFM, such as budget procedures and debt management, significant weaknesses remain in budget credibility, transparency, and the integration of policy-based budgeting. These issues hinder the efficient and effective delivery of public services and the achievement of strategic goals. The report highlights the need for reforms in these areas to align Panama's PFM system with international standards.