Sector: Economic / Financial Management Public Finance

Client: World Bank Government of Bangladesh

Country: Bangladesh

Description of Project

e.Gen was responsible for implementing this Bangladesh Management and Implementation Support Consultancy under the Deepening Medium Term Budgeting Framework (MTBF) which involves Budgeting Process Improvement of about 40 important line ministries of Government of Bangladesh. This was the flagship and biggest project of its kind in the country. The overarching objective of project was to strengthen institutions and build capacity for budget management and accountability mechanisms of government, with a particular focus on the performance of the MTBF and the establishment of a comprehensive government-wide accounting, reporting and financial management system.

The objective of the consultancy assignment was to provide to the Project Management and Coordination Unit (PMCU) state of the art project management and implementation support services as well as technical advisory and expert services for the successful execution of the project. The consultancy services also included assisting in preparation of M&E reporting framework for the Project consistent with the overall program’s M&E framework, bidding documents for project related goods, works and services, record keeping of project expenditures in accordance with generally accepted standards. The scope of the consultancy services covered nine components with all related subcomponents and activities.

Description of actual services provided by your staff within the assignment

Component 1: Strategic Budget Management in Finance Division

This component includes implementation of following subcomponents:

  • Strengthen technical capacity for Macro-fiscal forecasting, fiscal policy and analysis
  • Medium Term Budget institutional processes and system development
  • Strengthening budget/accounts classification and fiscal reporting
  • Further strengthening FD’s guidelines on internal Audit including building of internal audit capacity within FD

Component 2: Developing Capacities for Debt Policy and Management

  • Improve governance, coordination, and monitoring mechanisms among all agencies dealing with debt management
  • Build capacity for preparation of the debt strategy, debt policy formulation, data recording and analysis in Treasury and Debt Management Wing (TDMW), including for better coordination with treasury and financial management monetary policy
  • Build capacity to manage explicit and implicit contingent liabilities
  • Strengthen the regulatory framework for public borrowing.

Component 3: Capacity Development in Line Ministries

  • Rollout of the MTBF process in all line ministries
  • Deepen and Institutionalize the MTBF Process
  • Phased strengthening of internal audit function in line ministries, building on the work already done by MoF
  • Strengthening planning cells in line ministries to support resource allocation decision-making process in achieving policy objectives
  • Strengthening internal re-organization of the financial management functions of the line ministries
  • Integration of procurement planning with budget formulation

Component 4: Developing Planning Commission Capacity in line with the MTBF Approach

  • Strengthening General Economics Department (GED) capacity to design poverty reduction strategy and to monitor its implementation
  • Complimentary to ADB-assisted reform intervention
  • Streamlining planning process in the context of the MTBF
  • Support improved program evaluation and monitoring if necessary (Complimentary to ADB-assisted reform intervention)

Component 5: Accounting and Financial Reporting

This component aims at moving towards the establishment of a fully functional Integrated Financial Management Information System (IFMIS) in government to improve the quality of accounts and timeliness of financial reporting to international standards. following sub-components:

This component includes implementation of following subcomponents:

  • Government Integrated Financial Management Information System
  • Accounting Procedures and Standards
  • Capacity Building of FSMU
  • Self-Accounting (Departmentalized Accounting) Entities

Component 6: Strengthen Treasury and Cash Management Systems

This Component aims at installation of the requisite systems as an interface to Integrated Budgeting & Accounting System (iBAS).

Component 7: Review PFM Legislation and Regulations.

  • Review and support the introduction of the enabling legislation for PFM reform including the Public Finance Act
  • Review and revision of General Financial Rules (GFR) including Treasury Rules and Accounts Codes & others.

Component 8: Payroll, Pensions, GPF, Loans & Advances, and Assets

  • Initiate a series of diagnostic studies to take a decision on a medium-term implementation strategy
  • Select appropriate solutions as added functionalities to iBAS to deal with data relating to GPF and loans and advances
  • Build a central database in FD to capture and store data in respect of the existing physical assets of the Government

Component 9: Training and Human Resource Development

  • Developing a training strategy across the project components

Strengthening training particularly in all aspects of public financial management, in particular, macro management, budget planning, budget execution, accounting and financial and fiscal reporting.

For further information on this project, please write to info@egenconsultants.com