2003年-世界发展银行全球_Zambia___Public_Expenditure_Management_and_Financial_Accountability_Review_198页_14mb

Summary of Public Expenditure Management and Financial Accountability Review in Zambia

Core Content

This report, prepared by the World Bank in collaboration with the Government of the Republic of Zambia, provides a comprehensive analysis of the country's public expenditure management (PEM) and financial accountability systems. It outlines the challenges, legal and institutional framework, and proposes a program of priority actions to improve fiscal governance and public resource management.

Main Objectives

• To assess Zambia's fiduciary risk in budget management, financial systems, and public procurement.
• To document the progress and challenges in PEM reforms.
• To develop a realistic action plan for short and medium-term remedial measures with donor support.

Key Findings and Main Issues

Legal and Institutional Framework for Accountability

• The legal framework for public finance is inconsistent with the actual structures and incentives for accountability.
• The Constitution grants excessive discretion to the Ministry of Finance and National Planning (MFNP), allowing it to make sweeping budget changes without parliamentary consent.
• The enforcement of public finance rules is weak, with the Ministry of Finance failing to hold Controlling Officers accountable and Parliament unable to effectively oversee the Executive.
• A review of other African constitutions suggests ways to improve the balance of power and accountability mechanisms.

Budget Preparation

• Credibility of the Budget: Budgets are often structurally over-committed and lack the necessary resources to meet ongoing obligations.
• Comprehensiveness: The budget is limited to central government and does not include information on state enterprises, pension funds, and local government.
• Classification: The absence of functional or programmatic classification makes it difficult to identify poverty-reducing expenditures.
• Presentation: The budget document is poorly formatted and lacks clarity, hindering effective oversight by Parliament and understanding by stakeholders.
• Integration of Policy and Planning: There is a weak link between policy, planning, and budgeting, and the government needs to adopt a medium-term planning horizon to improve credibility.

Budget Execution and Control

• Cash Rationing: The reliance on cash rationing has led to misalignment between actual expenditures and approved budgets, and has hindered planning for operational needs.
• Expenditure Controls: Weak enforcement of financial regulations has resulted in inefficiencies and mismanagement.
• Commitment Control: There are significant issues with recording commitments, especially for capital projects, contributing to the arrears problem.
• Payroll Controls: Payroll lists are not systematically updated, leading to discrepancies and inefficiencies.
• Procurement: Procurement practices and regulations require reform to reduce corruption and ensure transparency and value for money.

Recommendations

Institutional Strengthening

• Strengthen institutions that provide public oversight and promote checks and balances.
• Enhance the capacity of Parliament to provide effective oversight by improving its access to timely and accurate information.

Legal and Regulatory Reforms

• Review and revise the legal framework to ensure a better balance of power and accountability.
• Enforce existing financial regulations and ensure that the Auditor General's recommendations are implemented with follow-up and sanctions.

Budget Preparation Improvements

• Improve the credibility of the budget by reconciling historical costs with proposed estimates and limiting the use of supplementary appropriations.
• Enhance comprehensiveness by including state enterprises, pension funds, and local government in the budget.
• Introduce functional and programmatic classification to better reflect policy priorities.
• Improve the format and quality of the budget document, including prior year expenditure data, capital project status, and more summary tables.
• Strengthen the link between policy, planning, and budgeting by adopting a medium-term planning horizon.

Budget Execution and Control

• Abolish cash rationing and restore the proper role of the budget in resource allocation.
• Enforce expenditure controls and improve the recording of commitments.
• Systematically update payroll lists to ensure accuracy.
• Reform procurement practices and regulations to enhance transparency and reduce corruption.

Priority Actions

Medium Term Vision for Zambia

• Develop a medium-term vision that aligns with poverty reduction and economic management goals.
• Focus on improving institutional capacity, legal frameworks, and financial systems.

Three-Year Program

• Year 1: Improve budget credibility, comprehensiveness, and presentation.
• Year 2: Strengthen enforcement of financial regulations and enhance procurement practices.
• Year 3: Implement integrated financial management information systems (IFMIS) and promote transparency and accountability in public resource management.

Progress Monitoring and Support

• Establish a mechanism for monitoring progress and ensuring accountability.
• Seek donor support for the implementation of the proposed action plan, including financial and technical assistance.

Conclusion

• The report emphasizes the need for improved public expenditure management and financial accountability in Zambia to address long-standing challenges and ensure sustainable development.
• Without better budget management, accountability, and value-for-money, the impact on poverty reduction will remain limited.
• Institutional strengthening, legal reforms, and the adoption of integrated financial systems are essential for effective governance and public resource management.