Towards Greater Policy Coherence: Lessons from Mauritius

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Towards Greater Policy Coherence Lessons from
Mauritius
Mauritius 27 OCT 2008

• Mr S. Puran
• Analyst
• Ministry of Finance

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BACKGROUND SETTING THE STAGE

• Economic downturn

Job creation slowing unemployment increasing
Declining trend in growth
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BACKGROUND SETTING THE STAGE
Fiscal Consolidation and Improved Public Sector
Efficiency
Improving the Investment Climate

• Economic Reform Programme

Democratizing the Economy through participation,
social inclusion and sustainability
Improving trade competitiveness
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BACKGROUND SETTING THE STAGE
Constraints to Development Partners financial and
technical assistance
Supply-driven topic selection
Lack of ownership and involvement of executive
agency
Ineffective dissemination and use of consultancy
outputs
Poor consultant performance
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BUDGET REFORM

• Fiscal rules
• Mauritius Revenue Authority
• Public Procurement Act
• Finance Audit Act and Public Debt
  Management Act

• Administration and Legislation

Programme Based Budgeting
link Outputs with Inputs in line with Specific
Objectives
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PBB in Mauritius

• Programme-Based Budgeting (PBB) seeks to improve
  expenditure efficiency and effectiveness by
  systematically linking funding to results, making
  use of performance information to achieve that
  linkage.
• A fully-fledged PBB (budget year 2008-09)
  embedded in a three year MTEF (2008-09 / 2010-11)
  is currently being implemented. This forms the
  basis for appropriation by the National Assembly
  and replaces the traditional line-item budget.

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PBB Objectives
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Coordination of Budget Monitoring

• The Treasury uses a computerised accounting
  system, known as the Treasury Accounting System
  (TAS), for the processing and recording under
  ORACLE Financials of the financial transactions
  of Government and for the preparation of monthly,
  quarterly and annual financial statements and
  other financial reports.
• The Budget Strategy and Management Directorate
  (MoFED/BSMD) coordinates the development and the
  maintenance under ORACLE Balanced ScoreCard
  (BSC) of the Budget database relating to
  non-financial performance data which is operated
  by Ministries / Departments to report on their
  budget activities. BSMD also supervises the
  preparation of the Quarterly Monitoring Report of
  the Public Sector Investment Programme (PSIP).
• The Public Expenditure Management Systems Review
  Directorate (MoFED/PEMSR) supervises monthly
  budget monitoring reviews on performance data and
  coordinates the preparation of half-yearly
  performance monitoring reports (Interim
  Performance Report -IPR prepared in December- and
  Annual Performance Report -APR prepared in July-
  respectively).

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MAKING PARIS DECLARATION WORK

• Ownership and articulation of priorities
• Formulation of Ministry Strategic Plan
• Reorganisation of Ministry administrative
  structure
  
• Need for Cooperating Partner input to address
• Mindset focussed on inputs activities
• Shortage of planning time and capacity
• Quality of services
• Better coordination between partners and planning
  of missions

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MAKING PARIS DECLARATION WORK

• Alignment of Cooperating Partner flows
• Financing v/s technical input capacity
  building
  
• Alignment of technical inputs to develop PBB and
  integrate Global Public Goods Global
  Facilities
  
• PBB coordinated harmonised way to mobilise
  resources and achieve desired outcomes

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MAKING PARIS DECLARATION WORK

• Harmonisation among Cooperating Partners
• Capacity Building Planning Unit in MOFED (UNDP
  assistance)
  
• External assistance integrated in local
  structures
  
• Changes in Cooperating Partners approach and also
  in administrative and hiring practice to
  integrate contractual workers

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MAKING PARIS DECLARATION WORK

• Managing for
  Results
  
• PBB complemented by Performance Management
  System
  
• Investment by Cooperating Partners in capacity
  building in PBB and PMS
  
• Establish database of reliable consultants
• ME mechanism to assess consultants
• Regional Multidisciplinary Centre of Excellence
  useful tool

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MAKING PARIS DECLARATION WORK

• Mutual Accountability
• Annual Business Plan consultations
• TA capacity building support v/s progress
• Financial assistance v/s progress
• Service to Mauritius Programme
• Capacity Building Programme

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• Thank You