2005年-世界发展银行全球_Islamic_Republic_of_Pakistan___Punjab_Public_Financial_Management_and_Accountability_Assessment_79页_816kb

Summary of Punjab Public Financial Management and Accountability Assessment

Core Content

This report, titled Punjab Public Financial Management and Accountability Assessment (PFMAA), was prepared by the World Bank in May 2005. It evaluates the financial management and accountability systems in the Punjab province of Pakistan, highlighting areas of improvement and reform. The assessment is based on a four-grade rating mechanism for measuring PFM performance, and it includes recommendations for enhancing financial management practices, transparency, and accountability.

Main Viewpoints

• Reform Commitment: The Punjab Government has shown a strong commitment to reforming its public financial management (PFM) systems. The Finance Secretary has spearheaded a wide range of initiatives aimed at improving financial accountability and transparency.

• PFM Performance Framework: The PFM Performance Measurement Framework is used to assess the province's financial systems. It outlines six critical PFM objectives, including budget realism, comprehensive policy-based budgeting, responsive fiscal management, adequate information, effective control of public funds, and appropriate scrutiny arrangements for accountability and transparency.

• Rating Outcomes:

  • The aggregate fiscal deficit compared to the original approved budget received an 'a' rating, indicating that the actual deficit did not exceed the planned deficit in any of the last three years.
  • The composition of budget expenditure received a 'b' rating, showing that the variance from the budget was less than 15% in two of the three years, but not meeting the criteria for an 'a' rating.

• Reforms and Initiatives: Several reform programs are underway to improve PFM in Punjab, including the Punjab Resource Management Program (PRMP), the Decentralization Support Program (DSP), and the Project for Improvement in Financial Reporting and Auditing (PIFRA). These initiatives aim to enhance budget execution, improve financial reporting, and strengthen internal and external audit systems.

• Challenges: Despite progress, there are still challenges in areas such as budget execution, accounting, and audit. The report emphasizes the need for improved information on arrears, more frequent monitoring of fiscal risks, and the implementation of a centralized procurement system.

• Stakeholder Involvement: The assessment was conducted in close coordination with the European Commission, DFID, and ADB. A Steering Committee was formed to oversee the process, and stakeholder consultations were integral to the development of the Action Matrix.

Key Information

Budget Execution and Fiscal Deficit

• Aggregate Fiscal Deficit: The actual deficit in the last three years did not exceed the planned deficit, indicating strong fiscal discipline. The GoPj met the 'a' rating criteria for this indicator.
• Budget Realism: The composition of expenditures was close to the original approved budget, with an average variance of less than 10% in two of the three years, leading to a 'b' rating.

Reforms and Initiatives

• PRMP and PIFRA: These projects are aimed at improving financial reporting, budgeting, and accountability. PIFRA involves implementing a new accounting model and a computer-based financial accounting and budgeting system.
• Decentralization: The Local Government Ordinance (LGO) 2001 has led to the devolution of financial functions to local governments, though TMAs remain more autonomous and outside the provincial budgeting system.
• Debt Restructuring and Revenue Reforms: Punjab has restructured its debt and reduced the number of taxes from 36 to 9, harmonizing rates with other provinces and introducing income-based agriculture taxes.

Recommendations and Action Matrix

• The report recommends:

  • Improving arrears information through commitment accounting and memorandum accounts.
  • More frequent monitoring of fiscal risks from SOEs.
  • Implementation of a new procurement law and a central procurement authority.
  • Enhancing internal controls and internal audit systems.
  • Strengthening payroll and GPF records.
  • Improving budget execution and procurement processes.
  • Publishing audited annual accounts within 12 months of the year-end.
  • Enhancing legislative scrutiny through more support for the PAC.

• The Action Matrix, developed through a stakeholders' workshop, outlines a path for improving PFM in Punjab, focusing on the areas identified as needing urgent reform.

Legal and Institutional Reforms

• The financial management systems are based on legal frameworks, including the Constitution, laws, and regulations. Legal reforms are necessary to realign the legislative framework to support new systems.
• The role of the Accountant General (AG) and the Controller General of Accounts (CGA) is emphasized in ensuring control and accountability.

Structure of the Assessment

The report is divided into several chapters, including:

• Introduction
• Background Information and Government Reform Process
• Assessment of Public Financial Management Out-turns
• Assessment of Comprehensiveness and Transparency
• Assessment of Budget Presentation
• Assessment of Medium Term Planning and Budget Formulation
• Assessment of Budget Execution and Procurement
• Assessment of Internal Controls and Internal Audit
• Assessment of Accounting and Reporting
• Assessment of External Audit
• Legislative Scrutiny of External Audit Reports
• Action Matrix

Conclusion

The PFMAA study highlights the progress made by Punjab in financial management and accountability, while also identifying critical areas that require further reform. The report emphasizes the importance of stakeholder consensus, legal reforms, and the implementation of new systems such as PIFRA to ensure sustainable improvements in PFM. The Action Matrix provides a clear roadmap for achieving these improvements.