Strengthening Public Expenditure Management Program (SPEMP): Deepening Medium-Term Budget Framework and Strengthening Financial Accountability Project
Client
Asian Development Bank (ADB)
Sector
Finance and Risk
Country
Bangladesh
Timeline
2010-2014
Project Description
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 Services Provided
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.