2014年-世界发展银行全球_Tajikistan___Key_Issues_in_Public_Finance_Management_42页_1mb

Tajikistan Public Finance Management (PFM) Reform Summary

Core Content

This document presents an analysis of the Public Finance Management (PFM) reform in Tajikistan, highlighting the progress made, challenges faced, and recommendations for further improvement. It is part of the second stage of the Public Expenditure Review (PER-2), which continues the fiscal policy dialogue initiated in FY12–13.

Main Messages

• PFM Reform Priority: PFM reform remains a key priority for the Government of Tajikistan, integral to its Poverty Reduction Strategies (PRS), including the Living Standards Improvement Strategy (LSIS) for 2013–15 and the Public Administration Reform Strategy (PARS) for 2005–15.
• Progress and Challenges: While some tangible gains have been made since the adoption of the 2008 PFM Reform Strategy (PFMRS), progress has been slow and uneven, falling short of the Government's ambitious targets.
• PEFA Assessment: A 2012 PEFA assessment showed an overall improvement across most performance indicators compared to 2007, but with some areas showing no change or slippage.
• Recommendations: The Government is advised to:
  • Reflect all public spending in the budget transparently.
  • Strengthen monitoring of state-owned enterprises (SOEs) and improve fiscal risk reporting.
  • Implement a time-bound plan to phase out quasi-fiscal activities.
  • Prioritize recording commitments to provide complete information on public resources.
  • Continue the inclusion of all government units into the Treasury Single Account (TSA).
  • Facilitate the implementation of the Financial Management Information System (FMIS) using SGB.NET software.
• Budget Transparency: The Government should build on the 2014 budget based on a new classification system and ensure all expenditures, including donor-financed projects, are accounted for using the Unified Chart of Accounts (UCOA).
• MTEF Implementation: The Government is encouraged to strengthen the links between capital and recurrent budgets, and to develop long-term plans and efficient implementation of sectoral strategic frameworks.
• Change Management: Delays in PFM reform are more due to challenges in managing change rather than technical issues. A formal recognition of change management in the action plan is recommended to ensure future progress.

Current State of PFM Reform

• The Government of Tajikistan has pursued a comprehensive PFM reform agenda with donor support.
• The PFMRS, adopted in 2008, outlined seven reform priorities: one short-term, four medium-term, and two long-term, with 33 attendant objectives.
• A detailed three-year action plan for 2012–14 was developed and adopted by the PFM Council in 2011.
• By 2013, fewer than 60% of the intermediate indicators were achieved, with only 36.3% of the short-term priority targets met.
• The 2012 PEFA assessment highlighted slow progress in key areas such as financial reporting, payroll control, and audit.
• Donor coordination and alignment with the Government's strategic priorities have improved since 2009, but donor practices still face challenges in predictability and transparency.

Key Issues and Recommendations

Short-Term PFM Strategy Priorities and Outcomes

Donor Support and Coordination

• Donors have played a significant role in supporting PFM reform, particularly through the establishment of the PFM Modernization Trust Fund (TF).
• The TF has helped harmonize donor approaches, facilitate long-term commitment, and provide effective management of a portfolio of work.
• Donor coordination remains a challenge, and there is a need for better alignment with the Government's strategic priorities.
• The DCC's PFM Coordination Group has been established to coordinate donor efforts, but it needs to take a more direct role in ensuring alignment with the Government's needs.

Key Recommendations

• Establish a minimum operational level of core PFM functions.
• Improve transparency in budgeting and financial reporting.
• Strengthen monitoring of SOEs and fiscal risk reporting.
• Implement a time-bound plan to phase out quasi-fiscal activities.
• Prioritize recording commitments to provide complete information on public resources.
• Continue the inclusion of all government units into the TSA.
• Facilitate the implementation of the FMIS using SGB.NET software.
• Build capacity for long-term planning and efficient implementation of sectoral strategic frameworks.
• Formalize a change management approach in the PFM strategy and action plans.

Conclusion

Despite progress in some areas, Tajikistan's PFM reform has not met its ambitious targets. The Government is advised to focus on completing core PFM reforms, improving transparency, and enhancing donor coordination. The PFM reform is a key component of broader governance and development efforts, and its success depends on the integration of change management and alignment with strategic priorities.