16 Jan 2019

The third Botswana’s Public Expenditure and Financial Accountability (PEFA) assessment will be held from January 21-31.

A news release from the Ministry of Finance and Economic Development states that the launch of the assessment will be held on January 21.

The assessment will be based on the 2016 PEFA framework, whereas the first and second assessments, which were conducted in 2009 and 2013 were based on 2005 and 2011 frameworks respectively.

The PEFA programme was founded as a partnership by the European Union Commission, International Monetary Fund, World Bank, and the governments of France, Norway, Switzerland, and the United Kingdom in 2001. 

The release further states that PEFA was established as a means to reduce the duplication and costs of multiple assessments and to facilitate dialogue between government and donors. 

“PEFA introduced a standard methodology and reference tool for Public Financial Management (PFM) diagnostic assessments. 

The PEFA programme provides a framework for assessing and reporting on the strengths and weaknesses of PFM using quantitative indicators to measure performance,” states the release.

The release states that the third assessment will be a self-assessment type guided by independent technical personnel provided by the US Department of the Treasury- Office of Technical Assistance. 

The quality assurance review of the assessment will be done by local and international institutions being BIDPA, University of Botswana, and World Bank local office, European Union Delegation in Botswana and SADC, Macroeconomic and Financial Management Institute (MEFMI), African Development Bank, US Embassy-Gaborone office and PEFA Secretariat.

PEFA 2016 Framework is structured around the phases of the budget cycle and the budget outcome as follows: 7 Pillars of Public Finance Management system - Budget reliability, Transparency of public finances,  Management of assets and liabilities, Policy based fiscal strategy and budgeting, Predictability and control in budget execution, Accounting and  reporting as well as External scrutiny and audit 

The other phases of the budget cycle and the budget outcome are;  Budgetary outcomes namely;  Aggregate fiscal discipline, Strategic allocation of resources and Efficient service delivery.

The release further states that key composition of PEFA 2016 framework are 31 performance indicators, which are further disaggregated into 94 separate dimensions.

PEFA 2016 establishes a new baseline and it is not directly comparable with previous assessment that used PEFA 2011, it says.

It states that the general PEFA assessment benefits are that: PEFA reports provide a comprehensive and integrated assessment of a country’s PFM based on an indicator-led analysis, Provides a standalone overview of PFM performance, Identifies PFM strengths and weaknesses, The reports can inform governments’ PFM and associated reform initiatives and priorities.

It also says most development agencies use the PEFA framework as a basis for their diagnostics of PFM systems and assessing associated fiduciary risks. Ends