Public Financial Managment Capacity Building Trust Fund
PFM reforms and capacity building are key for the Kyrgyz Republic to increase transparency and accountability in the use of public funds. SECO has supported these reforms in a first phase of the Capacity Building in Public Finance Management project, administrated by the World Bank, between 2009-2015 and is now co-financing a second phase.
Economic and financial policy
- World Bank - International Bank for Reconstruction and Development
|Background||This project supports reforms of the Kyrgyz Republic's Public Financial Management system. Reforms in this area are key to promote fiscal transparency and accountability and overcome related fiduciary risks. The main obstacle to moving the reform agenda forward and ensuring sustainability of reforms is weak capacities at the Ministry of Finance, both at the management and technical staff levels. Therefore, the project provides a well-targeted training program to the Ministry of Finance, the National and Local Parliaments, and the local administrations, while at the same time instutionalizing training capacities.|
|Objectives||The overall objective of the project is to improve efficiency, transparency, and results focus in Public Finance Management through strengthening the budget process, enhancing efficiency of Public Finance Management and intergovernmental fiscal relations, and strengthening institutional and human capacity of the Ministry of Finance and National and Local Parliaments.|
|Medium-term outcomes||A stronger, transparent budget process with improved internal management and accountability for spending and performance.Improved capacity in Public Finance Management with increased efficiency for planning, execution and oversight of the budget.|
Expected results: A stronger budget process with improved internal management and accountability for spending and performance.Improved transparency of the budget process.Annual allocations to ministries consistent with approved transparent financing plan based on the annual budget law.Fiscal risks regularly assessed in the budget process.Improved focus of budget on results.Enhanced Efficiency of Public Finance Management via effective payroll monitoring system.Improved system for intergovernmental relations and Public Finance Management at the sub-national level.Increased competence in management, administration and technical functions in the Ministry of Finance and key line ministries, specifically in Public Financial Management.Increased competence in management, administration and technical functions in Parliament's Budget and Finance Committee and Local Parliaments.
Results from previous phases: The transparency of the state budget of the Kyrgyz Republic was significantly improved, with the preparation of a civil budget, public hearings on the draft budget, and the publication of both budget formulation and budget execution documents. This progress is evidenced by an improvement of the Kyrgyz Republic’s rating in the Open Budget Index.Notable steps towards the improvement of the legal framework underlying Public Finance Management processes were made, most notably through the development of a draft Budget Code. The improvement of the infrastructure of the Training Center of the Ministry of Finance, which took place under the project, and the introduction of specific training curricula on Public Finance Management reforms, helped to increase the professional capacities of the staff of the Ministry of Finance.
|Directorate/federal office responsible||
Swiss cooperation with Eastern Europe
|Budget||Current phase Swiss budget CHF 3'200'000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 5'900'000|
|Project phases||Phase 3 01.12.2015 - 30.11.2019 (Current phase)|