The Deputy Minister of Finance Pushes Onward Along the Path to Budget Preparation Reforms in Hargeisa, July 2017.

The Ministry of Finance is currently progressing with reforms in Pillar 1 of the PFM Reform program as required by the PFMA Act. Specifically, these reforms aim to improve economic management and the Budget preparation process. The successful completion of these reforms will help to increase economic stability and allocate Somaliland’s scarce financial resources to its most pressing needs.

The passage of the PFMA Act was a necessary requirement for implementing reforms in 2017 and beyond. Once this Act was signed into law, the Ministry of Finance and others began work to ensure that the Act could be implemented in this year and that the Government complied with its legal requirements.

Below is a an update of the completed reform work being carried out in Pillar 1 of the PFM Reform Program as well as details of upcoming actions to be completed in this year.

Passage of PFMA Act into law

The PFMA Act is the core legal framework that provides for the proper management of public resources, funds and property. In particular, it sets out requirements of all aspects of the PFM cycle from the preparation of the Budget to its execution and, finally, its evaluation.

(Click Here to view the PFMA Act Information booklet)

PFMA Act Workshop

After passage of the PFMA act, the PFM Reform Unit helped to organise a workshop for all concerned stakeholders to begin its implementation. The Workshop had two separate parts. In the first part, stakeholders were presented an in-depth insight into the key features of the Act as well as the requirements for the individual stakeholders present. The second part of the Workshop was an interactive discussion with key stakeholders to gain their thoughts and views as to how to implement PFM reforms in 2017 and beyond.

(Click Here to view the PFMA Act Stakeholder Workshop Report)

Meetings with Ministers and presentation of Action Plan

Using feedback from the PFMA Act Stakeholder workshop, an action plan was created to ensure that the Ministry of Finance and other concerned stakeholders would meet the PFMA Act requirements for Budget Preparation in this year and beyond. A description of the Pillar 1 reforms and this action plan has been presented to Ministers. Ministry of Finance officials are currently working on the actions specified in the action plan to ensure the successful completion of Pillar 1 reforms in this year and beyond.

In particular, the pillar 1 action plan has the following key characteristics: –

  1. The Budget Calendar is delayed in 2017 to allow for implementation of the PFMA Act in this year
  2. All Budget Frameworks as set out in the PFMA Act are delivered in this year to the best of our ability and will be refined in future years
  3. The Government will clearly assess its knowledge and capacity gaps to formulate strategies to help ensure that these are addressed in future years.

Click Here to view the presentation on Budget Reform Preparations.

Click Here to view the Budget Preparation Timeline Options.

Click Here to view the Budget Preparation Action Plan.

 

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