1. GOVERNMENT – DEVELOPMENT PARTNERS PFM
GROUP COORDINATION MEETING
SANA’A, AUGUST 28TH 2013
J E A N - M A R C L E P A I N
E U P F M S P E C I A L I S T
J L E P A I N @ Y A H O O . F R
W W W . S L I D E S H A R E . N E T / J E A N M A R C L E P A I N /
Methodology for Preparing the
New PFM Action Plan

2. 1. The New Action Plan
within the Context of PFM Reforms

3. Why preparing a new PFM Action Plan?
 Last Action Plan covering 2005-2008 never updated since.
 Absence of strategic direction in PFM Reforms since 2008
and changes in the environment.
 Lack of integration and common strategy between PFM
stakeholders (MOF, MOPIC, MOLA, etc.).
 Fragmented donor assistance not aligned on Government’s
priorities.
 Lack of investment in large PFM projects.

4. Why the Action Plan is strategically Important
 The political stability of the country requires new economic
policies which cannot be implemented without efficient
PFM mechanisms.
 Restoration of macroeconomic stability requires sound
fiscal policy that cannot be put in place without
strengthening revenue collection and an adequate.
 Resolution of the liquidity crisis cannot be achieved only
through external assistance. It require important structural
PFM reform and improvement in budget execution
procedures.

5. What are the issues that needs to be addressed?
 Budget credibility and realism
 Revenue mobilisation and revenue management(taxes +
customs)
 Integration of the Economic Entities Budget with the
General Budget
 Coordination of investment planning with the recurrent
budget
 Alignment of budget formulation on Government’s
economic priorities;
 Budget execution
 Fiscal decentralisation

6. 2. Strategic Planning

7. Guiding Principles
 Base reform agenda on well identified priorities
linked to specific outcomes.
 Introduce reforms in a sequenced order taking a
medium term approach
 Take time to formulate a comprehensive PFM
strategy
 Used and integrated approach associating all PFM
partners.

8. Platform 1
Platform 2
Platform 3
Platform 4Example of reform
sequencing and Platform
Strategy Enables focus
on what is
done with
money
A credible budget delivering
a reliable and predictable
resource to budget
managers
Improved internal control
to hold managers
accountable
Improved linkage of
priorities and service
targets to budget planning
and implementation
Improved linkage of
priorities and service
targets to budget
planning
and implementation
Broad Activities
• Integration of
budget (recurrent
&capital budgets)
• Strengthen macro
and revenue
forecasting
• Streamline spending
processes
Broad Activities
• Re-design
budgeting
classification
system
• Initial design of
FMIS for core
business processes
• Define internal
audit function
Broad Activities
•Re-design budget
cycle (e.g. MTEF)
• Pilot program
based budgeting &
budget analysis
• Further fiscal
decentralisation
Enables a basis
for
accountability
Broad Activities
• Full design of
FMIS
• Develop IT
management
strategy
• Initial design
Enables more
accountability for
performance
management

9. Recommended Approach
Reforms can be groups in 3 to 4 ‘blocks’ or
‘platforms’:
1. Budget credibility and macroeconomic stability
2. Accountability and transparency
3. Streamlining of budget execution
4. Fiscal decentralisation

10. Harmonization Project
 Use the Harmonization Project as an essential
component that can become the core of the Action
Plan.
 Expend the Harmonization Project to cover budget
execution;
 Take into consideration the issue of fiscal
decentralisation

11. Two Phase Strategy
1. Emergency Phase
2. Consolidation Phase

12. Emergency Phase
 2-3 year phase
 Focus: budget credibility and budget execution
 Objective: support to the implementation of the
Transitional Programme for Stabilization and
Development
 Priorities: measures addressing pressing issues
such as increasing revenue and formulating
sustainable fiscal policy
 Public Expenditure Review and development of a
comprehensive PFM strategy

13. Consolidation Phase
 2-3 year phase
 At this stage does not need to be detailed.
 Should focus on reform sequencing and sound
medium term strategy
 More emphasis on accountability and transparency
 Will be reformulated based on the result of the
Public Expenditure Review.

14. 3. Planning Management

15. Three Levels of Planning
1. Intergovernmental Coordination Committee
2. Ministry level planning Committee
3. Working Groups

16. Intergovernmental Coordination
Two types of responsibilities:
 Coordination of ministerial planning committees
and consolidation of the Plan
 Monitoring and coordination of crosscutting issues
such as the Harmonization Plan, capacity building
and fiscal decentralisation

17. Responsibility of the Intergovernmental
Coordination
 Consolidation of the Plan
 Ensuring that output and outcome are in line with
PFM strategy and Government’s priorities
 Ensuring realism of the plan in terms (a) of time
frame, (b) objectives, (c) coverage, and (d) technical
assistance
 Identifying deliverables, verification means, key
milestone and monitoring indicators
 Finalizing management structure

18. Ministry Level
Planning Committees are responsible for:
 Defining sector priorities
 Identifying sub-sector components to be assigned to
working groups,
 Supervising working groups activities
 Integrating sub-sector plans in the sector plan
 Sequencing activities
 Identifying outputs and outcomes, verification
means, milestone, and supervision indicators

19. Working Groups
Working groups are responsible for:
 Conducting need assessment and defining sub-sector
activities;
 Planning the activities of a sub-sector or addressing
crosscutting issues (budget integration, fiscal
decentralisation, etc.);
 Identifying technical assistance needs

20. Implementation Mechanism
An implementation mechanism needs to be designed.
It is likely to include:
1. An Intergovernmental supervision committee
2. Steering committees at ministry level
3. Ad hoc committees for crosscutting issues
(harmonization plan, fiscal decentralisation)
4. A PFM Reform Secretariat

21. PFM Reform Secretariat
International experience shows that the existence of a strong
PFM Secretariat is a key success factor of PFM reforms.
Responsibilities of a PFM secretariat are:
 Monitoring activities of sector and steering committees,
and more especially outcomes, deliverables, milestones and
achievement indicators;
 Preparing regular reports for the Intergovernmental
Committee and for the donors;
 Identifying bottleneck and implementation issues at and
early stage and formulating recommendation for solving
them;
 Coordinating technical assistance.

22. 4. The Way Forward

23. Action Plan Preparation Time Table
 September to October 2013, preparation of the first draft of the
Action Plan;
 Beginning of November first Government – Donor Round Table
for presentation of the Draft Action Plan based on a need
assessment, and first comments by the donors;
 November- December 2013 finalization of the Action Plan based
on donor comments;
 December, second Government – Donor Round Table for
presentation of the final Action Plan;
 January 2014 approval of the Action Plan by the Cabinet,
appointment of the Intergovernmental Coordination Committee
by the Cabinet and appointment by ministries and agencies of
their Steering Committees.

24. First Round Table
Date: Between November 18 and November 28
Format: A one day conference
Objectives:
 Reviewing proposals from ministries and
departments and establishing principles for
prioritization of actions
 Giving donors a first view of the main challenges
 Discussing technical assistance needs based on a
need assessment

25. Second Round Table
Date: Mid-December
Format: A one day conference
Objectives:
 Reaching agreement on the overall PFM strategy
 Finalizing the Action Plan with well identified deciding key
milestones and monitoring indicators
 Reviewing sector by sector proposed actions, prioritization, time
schedule, outcomes and verification criteria
 Calibration of technical assistance requests
 Defining final steps for having the plan formally approved by the
Government and endorsed by the donor community.
 Agreeing on the Management Structure of the PFM Reform Action
Plan including the Steering Committee and possibly a Secretariat.
 Agreeing on a way forward to prepare a detail PFM Assessment for
the Action Plan’s phase 2.

26. THANKS