2009年-世界发展银行全球_Mongolia_-_Consolidating_the_Gains_Managing_Booms_and_Busts_and_Moving_to_Better_Service_Delivery___A_Public_Expenditure_and_Financial_Management_Review_-_Annexes_46页_2mb

Mongolia: Public Expenditure and Financial Management Review Summary

Core Content

This document is part of the Public Expenditure and Financial Management Review (PEFMR) for Mongolia, focusing on the structure, roles, and financial aspects of the country's public sector. It is divided into several annexes, each detailing different aspects of financial management, civil service, and public expenditure. The report was prepared in collaboration with the World Bank and is part of a two-volume series.

Main Points

1. Public Expenditure and Financial Management Review

• The review was initiated by the Government of Mongolia in collaboration with the World Bank.
• A working group was established, with B. Batjargal as the chair, to organize the review process and report findings.
• The working group includes various senior officials from different departments such as the Fiscal Policy and Coordination Department, Economic Policy Department, State Treasury Department, and others.
• A procurement sub-working group was also formed, led by Kh. Gantsogt, to focus on procurement-related aspects.

2. Budgetary Overview (Annex 1A)

• The report includes annual planned, amended, and actual budgets from 2001 to 2007.
• Total revenues and total expenditures are presented in MNT and USD.
• Current expenditure and capital expenditure are tracked over the years, with a notable increase in current expenditure from 2001 to 2007.
• Net lending also increased, indicating a shift in the fiscal policy over time.
• The budgetary share of GDP fluctuated, with a significant rise in 2007 and 2008.

3. Economic Classification of Public Expenditures (Annex 1A)

• The economic classification of public expenditures is detailed, showing the distribution of funds across different sectors.
• The largest share of public expenditures is directed towards social security and social welfare, followed by education and health.
• Wages and salaries have been a major component of public expenditure, accounting for a large portion of the budget.

4. Roles and Responsibilities of Local and Central Governments (Annex 1B)

• A clear delineation of roles and responsibilities is provided for different sectors.
• Central government handles most of the policy and funding aspects, while local governments are responsible for service delivery.
• There are some overlaps and shared responsibilities, especially in areas like public order and safety, education, and health.
• The local governments are responsible for environmental conservation, water and sewerage, and prevention of livestock diseases.

5. Civil Service in Mongolia (Annex 1C)

• The civil service is categorized into four main types: political, administrative, special, and support.
• Administrative and special civil servants are considered the core civil service.
• Support civil servants, such as teachers and doctors, form the majority of the civil service workforce.
• The average wage of civil service employees has increased over the years, reaching MNT 162,700 per month in 2007, which is three times higher than in 2000.
• The wage compression ratio (CR) for the civil service is 5.5, indicating a significant disparity between the highest and lowest salaries.
• The CR varies between classifications (2.0–2.5) and within grades (1.0–1.4), which is lower than some ASEAN countries.

6. Wage Bill Expenditure

• The share of wages and salaries in GDP fluctuated between 5.7% and 6.2% during 1996–2006.
• The total wage bill accounted for 21–16% of total budget expenditure for the same period.
• In 2006–2007, wages increased substantially, but their share in GDP and total expenditure did not increase significantly due to high economic growth.

7. Civil Service Reform

• Civil service reform has been a priority for Mongolian governments over the past 15 years.
• A medium-term civil service reform strategy (MTCSRS) was formulated and approved in 2004.
• The strategy includes strategic objectives, activities, and policy reforms to enhance performance management, leadership, and human resource development.
• The Civil Service Law was amended in 2007 to align with the Public Sector Management and Financial Management Law (PSMFL), with a focus on performance-based personnel management and increased accountability.

Key Information

• Currency Equivalent: 1 USD = 1,229 MNT (as of June 16, 2008).
• Fiscal Year: January 1 – December 31.
• Weights and Measures: Metric System.
• Key Officials:
  • Vice President: James W. Adams (EAPVP)
  • Country Director: David R. Dollar (EACCF)
  • Sector Director: Vikram Nehru (EASPR)
  • Lead Economist: Sudarshan Gooptu (EASPR)
  • Task Manager: Genevieve Boyreau (EASPR)
• Civil Service Composition:
  • Total civil service employees: ~125,000 (as of 2006)
  • Political civil servants: ~2.6 thousand
  • Administrative civil servants: ~9.7 thousand
  • Special civil servants: ~23.6 thousand
  • Support civil servants: ~89 thousand
• Wage Trends:
  • Average wage increased from MNT 52.1 thousand in 2000 to MNT 162.7 thousand in 2007.
  • In USD, the average wage increased from $48.4 in 2000 to $140.0 in 2007.
  • Wage compression ratio: 5.5 for the entire civil service, with lower compression within classifications and grades.
• Government Financial Management Information System Compliance Check (Annex 2B):
  • The report includes a compliance check of the government's financial management system, highlighting key controls and compliance measures.
• Public Procurement Law (Annex 2C):
  • The Public Procurement Law of Mongolia is reviewed, with comments on its implementation and effectiveness.
• Recommendations and Actions (Annex 8):
  • The tracked progress of recommendations from the 2002 PEFMR report is summarized, showing the implementation status of various financial management reforms.

Conclusion

The report provides a comprehensive overview of Mongolia's public expenditure and financial management practices, highlighting the roles of central and local governments, the structure of the civil service, and the financial implications of public spending. It underscores the need for improved service delivery, better fiscal management, and reforms in the civil service system to align with market economy principles and enhance public sector efficiency.