2010年-世界发展银行全球_Syrian_Arab_Republic___Modernization_of_Public_Financial_Management_62页_1mb

Summary of Syrian Arab Republic Public Financial Management Modernization

Core Content

This report outlines the progress made by the Syrian Arab Republic in modernizing its Public Financial Management (PFM) system and presents an action plan for further reforms. The mission, conducted by the IMF's Fiscal Affairs Department (FAD) in collaboration with the World Bank and the Middle East Technical Assistance Center (METAC), was requested by the Minister of Finance of Syria, Dr. Mohammad Al-Hussein. The goal is to assist in the development of a comprehensive, multi-year PFM strategy and to support the implementation of reforms through technical assistance.

Main Purpose

The main purpose of the report is to support the Syrian authorities in advancing their PFM reform agenda. It provides a detailed action plan that includes specific activities, timelines, and the potential need for technical assistance. The report also highlights the importance of coordination between different reform areas and emphasizes the need for capacity building within the Ministry of Finance (MoF) and the broader public sector.

Key Recommendations

• Prepare a three-year fiscal forecast and link it to an approved debt sustainability and fiscal strategy framework.
• Present information on the revenues and expenditures of public economic entities as part of the budget documentation and progressively strengthen sector governance.
• Extend the program budgeting approach to additional ministries in 2010, including the MoF and MoLA.
• Further integrate the management of recurrent and capital budgets within the MoF.
• Introduce a Treasury Single Account (TSA) system to strengthen government banking arrangements.
• Develop a new budget classification system and a double-entry accounting system.
• Establish accounting and cash management units within the Treasury Department of the MoF.

Main Viewpoints

• The Syrian authorities have made significant progress in several PFM areas, particularly in budget integration and the adoption of a new Basic Finance Law.
• Budget integration remains a central priority, with a focus on linking current and capital budgets, as well as incorporating public economic entities into the broader budget framework.
• Treasury reforms are lagging, and key functions such as cash management and budget execution remain underdeveloped.
• The introduction of a new integrated financial management information system (GFMIS) is a key component of the reform agenda.
• Capacity building is essential for the success of PFM reforms, and the MoF must take the lead in implementing these changes.
• Coordination with international donors, including the IMF, World Bank, European Commission (EC), and France, is crucial for the effective implementation of the reform plan.

Key Information

Progress to Date

• The revised Basic Finance Law was adopted in 2006, reflecting some of the recommendations from the 2006 FAD mission.
• The responsibility for the capital budget was transferred from the State Planning Commission (SPC) to the MoF in 2008.
• A Fiscal Forecasting Division (FFD) was established in 2009 to develop a medium-term fiscal forecasting framework (MTFF).
• A pilot program for program budgeting was introduced for the Ministry of Education (MoE) and Ministry of Agriculture (MoA) in 2010.

Action Plan (2010-2013)

• Medium-Term Budget Planning and Management: Develop and implement a three-year fiscal forecast, improve quarterly fiscal forecasts, and link fiscal projections to a debt sustainability and fiscal strategy framework.
• Budget Integration: Continue current reform strategies, expand the program budgeting pilot project to more ministries, and restructure the MoF to integrate current and investment budgets.
• Public Economic Entities: Review and reclassify economic entities, improve reporting on their finances, and strengthen monitoring and governance arrangements.
• Treasury Reforms: Implement a TSA system, close inactive bank accounts, transfer balances to TSA, and develop new IT systems and accounting procedures.

Donor Involvement

• The IMF will provide annual missions and short technical assistance (TA) missions through METAC.
• The World Bank will support program budgeting and fiscal forecasting, and will assist in the development of GFMIS and procurement systems.
• The European Commission is funding the Public Finance Reform Program, with a focus on improving budget preparation, introducing a new CoA and IFMIS, and strengthening fiscal reporting.
• France is actively involved in treasury reforms, aiming to support the development of a modern treasury system.

Mission's Assessment

• The reform process has made progress, but many initiatives are still in early stages.
• The focus on budget integration is appropriate, but it must be supported by infrastructure reforms, including the development of a new budget classification system and IT systems.
• The mission encourages the continued involvement of the IMF and World Bank in providing technical assistance and monitoring the implementation of the reform agenda.

Structure of the Action Plan

The action plan is organized into four main reform pillars:

1. Medium-Term Budget Planning and Management
2. Budget Integration
3. Budgetary Treatment of Public Economic Entities
4. PFM Infrastructure Reforms

Each pillar includes specific reform measures, activities, timelines, responsible entities, and the potential need for technical assistance. The report emphasizes the importance of a coordinated approach to reform, with cross-cutting issues addressed throughout the process.

Conclusion

The Syrian authorities have demonstrated a commitment to modernizing their PFM system. The action plan outlines a clear path for further reforms, focusing on strengthening fiscal forecasting, improving budget integration, enhancing the governance of public economic entities, and modernizing the treasury system. Continued support from the IMF, World Bank, and other donors is essential to ensure the successful implementation of the reform agenda.