Indicative Logicai Framework: EU-Indonesia Public Finance Management II (PFM II)

Transcription

1 Ref. Ares(2012) /07/2012 Indicative Logicai Framework: EU-Indonesia Public Finance Management II (PFM II) SSĶ!Ķ : T'^ ^.hsoffices ':.яйа;даеап$';.м Ш y ä;ašsümpion : $^ Overall Objective To support the (jovernment of Indonesia to contribute to the socio-economic development of the country through an improved collection, allocation, usage and control of public resources. щ Improvement in Human Development Index (FIDI) Progress in achievement of Millennium Development Goals B Gol economics statistics Reports from international organisations (UNDP) Continuous commitment of the present Gol to the economic reform process and achievement of MDGs Specific Objectives Resuiís To support public finance management reform in Indonesia with a focus on key reform items at central level. и Strengthened oversight of PFM reform process " More targeted allocation of public funds to development priorities B Better links between budgetary spending and improvement of public services Improved budget execution Enhanced compliance and value-formoney in budget spending Increased tax revenues through an improved tax administration performance * Improved PFM management at the subnational level, through clearer regulatory Improvement of PEFA assessment reports ' Improvement of fiscal stability indicators " Strategic PFM reform plans and oversight unit in place Increased share of central government spending on development priorities " Increased quality of spending on development priorities Increased consistency of activities and targets between planning and budget documents Increased correlation between forward estimates and annual budgets for ongoing policies Faster and more evenly spread budget disbursement Continued improvement in opinion expressed in audited «PEFA Secretariat я Doing Business Report - OECD fiscal assessments B Reports from MoF and other key PFM related agencies Continuous commitment of the Government of Indonesia, and particularly the Ministry of Finance, to the PFM reform programme " Effective co-ordination of activities between government agencies participating in the programme Definition of baselines for indicators * Establishment of indicator monitoring mechanism

2 framework and institutional arrangements at central level Strengthened institutional capacity for PFM. in line with the provisions of the Bureaucracy Reform Initiative annual financial statements Improvement of internal audit capacity based on Internal Audit Capability Model Matrix level 2 Consistent nominal growth rate of non-oil & gas income tax and VAT revenues Increased ratio of non-oil & gas income tax and VAT revenues over GDP Number of registered individual and business taxpayers Central Government policy on PFM at sub-national level issued Improved BRISA (Bureaucracy Reform Implementation Self- Assessment) ratings for the MoF and Bappenas Reduced backlog of cases at Tax Court

3 Main Activities iá«ťíyítíésv :ļnputs;.; :/Jiiaicatrve'Coslšl Strengthened oversight of P F M reform process: Review the joint roadmap between MoF and Bappenas for budget planning and execution reforms and consider its extension to all aspects of Public Finance Reform in Indonesia «Support the activities of the Strategic Budget Reform Team as a potential "nerve centre" for following up on reform process More targeted allocation of public funds to development priorities Continue support to improve policy analysis in the area of public expenditure through targeted technical assistance and capacity building in Bappenas (DC Development Financing) and MoF (Fiscal Policy Office. DG Budget) as well as other relevant government agencies «Improve analytical capacity in the area of public expenditure analysis of other stakeholders (local universities and research institutions) Better links between budgetary spending and improvement of public services «Support the refinement of the Medium Term Expenditure Framework (M'TEF) system Support' the coordination and implementation of the PBB system in MOF'Bappenas and Spending Units (K/Ls) Support ongoing development of a PBB-dnven M&E system, which will enable performance information to inform budget allocations Support institutional transformation in DG Budget» Strengthen the link between budget management and bureaucratie reforms, in particular the link to performance management Continue the support to the recently established Public Account Committee and to the soon to be established Parliament Budget Office (PBO), as the body which will support the budget formulation and oversight function of the legislative Improved budget execution» Strengtlien PUSINTEK's capability to serve as central 1CT services provider for SPAN «Build capacity' and systems for migration to accrual accounting (planned for 2015) Improve cash management and asset-liability management capacity Incorporate eprocurement, PBB and MTEF systems into SPAN Consolidate and report on fiscal data for the general government Short and long term technical assistance Training logistics Studies Study tours Studies & publications Administration casts Grants

4 Support local governments to strengthen procurement reform and increase performance in managing procurement cycle «Support LKPP and other GOI agencies in implementing the national resources strategy for procurem ent Enhanced compliance and value-for-money in budget, spending Strengthen internal audit systems through: Continue supporting the implementation of the COSO control framework «Develop a central agency with the role of coordination of the internal audit function in the country Strengthen the quality of the Inspectorate Generals in MOF and line ministries. Increased tax revenue through an improved tax administration performance: Capacity building for senior officials involved in tax administration and technical assistance to improve performance in the following areas: Improvement of taxpayer services Support for tax compliance improvement Support for organisational development Strengthening the corjlot^j^vemancejn tax adniinistration Improved Ρ F M management at the sub-national level, through clearer regulatory framework and institutional arrangements at central level: A solid needs assessment of Ρ F M at the sub-national level that addresses institutional arrangements at the central and sub-national level, capacity, incentives and financing constraints. Improved sub-national fiscal accounts, such that they are transparent, reliable, timely and available to public 's An improved fiscal decentralization framework (based on the assessment), focusing on the use of regulations and fiscal transfers to provide improved incentives for PFM. Capacity building at the Central Government level on improved monitoring and assessment of PFM developments at the Sub-national level and improved incentives for capacity building at the Sub-National Government (SNG) level. Support the coordination of capacity building activities to strengthen fiscal manaaement at sub-national level A strengthened institutional capacity for PFM, in line with the provisions of the Bureaucracy Reform Initiative Continue supporting the implementation of BR in MoF and in relevant PFM agencies: Human Resources Stratesiv. oraanizaiional restructurin» and

5 rightsizing to support PFM strategies and the continued introduction of performance management tools Ongoing support for the change management program to support the introduction of modern PFM practices in relation to SPAN Support for pilot implementation of pay and pensions reform at MOF Support for pilot of rightsizing initiative in MoF Support for development of PFM agencies as a service orientated institution with open, transparent and efficient service standards and code of ethics Support PFM agencies in improving its internal and external communication capacity Strenathen the Tax Court Others: Visibility activities «Monitoring and evaluation External auditing Monitoringe 150,000 External auditing 100,000 Information/Visibility 6: 250,000 Total: 500,000