20221130-IMF-Suriname_Technical_Assistance_Report_on_Government_Finance_Statistics_Mission_April_19-May_6,_2022_23页_1mb

Summary of the Government Finance Statistics (GFS) Technical Assistance Mission in Suriname (April 19–May 6, 2022)

Core Content

The report outlines the findings and recommendations from a technical assistance mission conducted by the International Monetary Fund (IMF) in Suriname between April 19 and May 6, 2022, aimed at improving the quality of Government Finance Statistics (GFS) in alignment with the IMF program. The mission was coordinated with the IMF's Western Hemisphere Department and focused on enhancing the institutional framework, data compilation, and consistency across various macroeconomic statistics, including Monetary and Financial Statistics (MFS), Balance of Payments (BOP), and External Sector Statistics (ESS).

Main Objectives

• To follow up on the recommendations from the previous mission in December 2021.
• To cross-check GFS data with other macroeconomic statistics.
• To update the public sector institutional table.
• To deliver a workshop on the GFSM 2014 framework.

Key Issues Identified

1. Sector Coverage

• The institutional table revealed inconsistencies and incompleteness in GFS reporting.
• Some entities are not properly classified as institutional units and are not fully integrated into the reporting framework.
• The sector coverage of the GFS elements is incomplete, particularly for off-budget accounts and certain financial operations.

2. Above-the-Line Transactions

• The mission assisted the Ministry of Finance and Planning (MFP) in compiling the above-the-line data for January–March 2022.
• The data was based on a template developed during the previous mission and updated with new adjustments.
• Adjustments were made to revenue and expenditure items, with explanations provided for each change.
• The reconciliation of above-the-line data with below-the-line data and MFS is still an ongoing process.

3. Below-the-Line Transactions and Debt Data

• The Central Bank of Suriname (CBS) began compiling the financial balance sheet for the Central Government.
• The mission emphasized the need for consistency checks between GFS, MFS, BOP, and IIP.
• The CBS should formalize and intensify its involvement in GFS compilation.
• The integration of stocks and flows is critical for accurate financial reporting, especially in the context of currency exchange rate fluctuations.

Priority Recommendations

Key Challenges

• Institutional Gaps: Lack of a functional Integrated Financial Management Information System (IFMIS) and inadequate capacities hinder the quality of GFS.
• Data Availability: Incomplete or delayed data from various sources, including the Tax Office and commercial banks, affects the accuracy of GFS.
• Classification Issues: The current coding system for transactions in the CBS accounts is insufficient and requires revision to better capture the economic nature of operations.
• Interest and Arrears Data: Interest payable and arrears are not fully captured due to gaps in source data and the absence of monthly calculations.
• Currency Conversion: There are inconsistencies in the method of converting foreign currency data to SRD, particularly between SDMO and CBS.

Recommendations for Improvement

• Formalize the role of CBS: The CBS should take on a more structured and formal role in GFS compilation, including the reconciliation of stocks and flows, and the consistency checks with other macroeconomic data.
• Improve data collection and processing: A more systematic and efficient data collection system is needed, with regular updates and quality checks.
• Enhance coding system: The coding system should be expanded and enforced by the MFP to ensure accurate classification of transactions.
• Improve tax data collection: The Tax Office needs to provide timely and classified tax data, and the process of data collection should be streamlined.
• Update the institutional table: The institutional table should be revised to ensure comprehensive sector coverage and better alignment with GFSM 2014.

Conclusion

To achieve high-quality and sustainable GFS, it is essential to address institutional gaps, improve data collection and processing, and formalize the role of the CBS in the compilation and reconciliation of financial data. These efforts will ensure consistency across macroeconomic statistics and enhance the reliability of government financial reporting.