2010年-世界发展银行全球_Bhutan_-_Public_Financial_Management_Accountability_Assessment_124页_1mb

Bhutan Public Financial Management Accountability Assessment Summary (June 2010)

Core Content

This report presents an assessment of Bhutan's Public Financial Management (PFM) system using the Public Expenditure and Financial Accountability (PEFA) framework. It evaluates the system's performance across 31 indicators, focusing on budget credibility, transparency, comprehensiveness, and donor practices. The assessment highlights both achievements and areas requiring improvement, with a particular emphasis on the context of Bhutan's political and fiscal reforms.

Main Viewpoints

• PFM System Overview: The PFM system in Bhutan is centralized and has been improving, especially with the adoption of the Public Finance Act and the implementation of computerized budgeting and accounting systems.
• Fiscal Management: Bhutan's fiscal deficit management is under pressure due to reliance on non-tax revenues and external assistance. The 2009-10 budget projected a deficit of over 6% of GDP, which is higher than the 5% target.
• Transparency and Accountability: The system is generally transparent, with good classification of budgets and comprehensive documentation. However, there are concerns regarding the availability of real-time fiscal information and the monitoring of expenditure arrears.
• Internal Controls: Payroll controls and internal audit are effective, but there is a need for expansion, especially in local governments where irregularities are more frequent.
• Procurement: Procurement processes are weak, with a need for greater competition and value for money considerations.
• Donor Practices: Donor financial information is not well integrated into the national budgeting process, and there is room for improvement in managing aid through national procedures.

Key Information

Fiscal Year and Currency

• Fiscal Year: July 1 – June 30
• Currency: 1 US Dollar = 46.53200 Bhutan Ngultrum (BTN), 1 BTN = 0.02149 USD

Legal and Institutional Framework

• Public Finance Act (PFA): Provides the legal basis for PFM.
• Royal Audit Authority (RAA): Conducts audits and ensures accountability.
• Department of Public Accounts (DPA): Manages the budgeting and accounting system.
• Department of Revenue and Customs (DRC): Handles tax and customs-related functions.

Key Indicators and Their Performance

Areas for Improvement

• PI-9: Oversight of fiscal risk from public enterprises and local governments needs to be strengthened.
• PI-12: Greater emphasis on multi-year fiscal planning and control over capital and recurrent expenditures.
• PI-15: Improved systems for tax collection to reduce arrears.
• PI-19: Strengthening procurement systems to enhance competition and value for money.
• PI-24: Developing a system for issuing in-year budget reports to improve budget execution monitoring.
• PI-27: Enhancing legislative scrutiny of the annual budget law to ensure greater parliamentary involvement in strategic resource allocation.

Donor Practices

• PI-D1: Direct budget support is somewhat predictable.
• PI-D2: Donor financial information is not well integrated into national budgeting and reporting.
• PI-D3: A significant proportion of aid is managed using national procedures, but there is room for improvement.

Strategic Allocation of Resources

• The budget development process is well structured, with good classifications and transparency.
• However, the role of the Parliament in strategic allocation is underdeveloped, as indicated by PI-27.
• Public enterprises contribute significantly to domestic revenue, with dividends amounting to Nu. 4,033.014 million in 2008, or over 32% of total domestic revenue.

Fiscal Discipline

• The budget system aims to maintain fiscal discipline by limiting deficits to about 5% of GDP.
• The 2009-10 budget projected a deficit of over 6%, indicating a need for tighter control.
• The system's performance in managing tax and non-tax revenues, as well as grants, is crucial for maintaining fiscal discipline.

Conclusion

This assessment provides a roadmap for improving Bhutan's PFM system, emphasizing the need for stronger internal audit, better procurement practices, and enhanced legislative scrutiny. The report also highlights the importance of integrating donor financial information and improving the availability of real-time fiscal data for more effective budget execution and oversight.