In order to ensure that budgets are more robust and transparent and that spending better reflects approved budgets it is critical to address the following:
- Strengthened policy-based fiscal strategy and budgeting, ensuring that macroeconomic forecasts are robust to ensure realistic prioritisation and budgeting.
- Needs-based, transparent and equitable distribution of resources, thereby ensuring that local government can develop realistic plans and budgets based on predictable resource allocation.
- Strengthening budget execution, ensuring that budgets are released and spent in accordance to approved plans and budgets.
- Budget transparency and accountability, thereby enabling citizens to hold government to account for the effective and efficient delivery of basic services.
Building on our experience under SNG-I in Punjab, the programme will support the finance departments in both provinces in the establishment of a donor coordination committee to ensure a coordinated response to PFM reforms. SNG-II has also established RWGs in each province to lead reform implementation with responsibility for the planning and implementation of proposed PFM reform interventions consistent with the overall SNG-II workplan. SNG-II is also supporting the establishment of an Internal Support Unit in the KP Department of Finance, which will provide support to the department in institutionalising reform capability. Additionally, support will be provided to the Minister of Finance in Punjab to steer the implementation of a comprehensive PFM Reform Strategy.