a vehicle for improving government efficiency and governance
TRANSCRIPT
![Page 1: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/1.jpg)
A vehicle for improving government efficiency and governance
![Page 2: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/2.jpg)
MAIN THEMES
IMF Code of Good Practices—
summary and rationale
Implementation plans and challenges
Experience so far
![Page 3: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/3.jpg)
IMF Standards and Codes
http://www.imf.org/external/
Standards & Codes
![Page 4: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/4.jpg)
Structure of the Code
• Roles and responsibilities of and within government should be clear
• Comprehensive reliable information on fiscal activities should be available to the public
• The processes of budget preparation, execution, and reporting should be open
• There should be independent assurance of integrity of information
The Code is based on four general principles:
![Page 5: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/5.jpg)
The Code’s Vertical Structure
The Code is organized in a hierarchy of principles and practices, which progressively define good practice in fiscal transparency:
• Four general principles• Specific principles• Good practices
![Page 6: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/6.jpg)
Why Transparency?
Improved transparency is seen as a necessary basis for improving efficiency and effectiveness of fiscal management:
• Better information will make government more accountable and lead to better fiscal policies
• Transparency will be reinforced by financial markets—which will provide further incentives for sound fiscal policies
![Page 7: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/7.jpg)
Fiscal transparency thus provides..
• A powerful force to link government policies to market forces; and
• Available evidence indicates that– fiscal transparency promotes sound
fiscal policies; and
– lack of transparency contributes to poor economic performance
![Page 8: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/8.jpg)
Limits to Fiscal Transparency
• Should not interfere with due decision-making process
• Due care in providing market sensitive information
• Limits must be set on basis of cost effectiveness
![Page 9: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/9.jpg)
Transparency and Governance
• Transparency is necessary for government accountability and helps to limit public sector corruption.
• It should be an important element in improving governance alongside other reforms:– Civil service reform– Regulatory reform– Anti-corruption programs
![Page 10: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/10.jpg)
Implementation of the Code
• Voluntary implementation• Diversity across countries
• Technical assistance
• Cooperation among international agencies
![Page 11: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/11.jpg)
Voluntary Implementation
• The Manual and questionnaire—available from the web site—are designed to facilitate self-assessment by countries
• Technical help will be available from FAD to assist in completing the questionnaire
• 11 countries have completed experimental reports on fiscal transparency standards; more are underway
![Page 12: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/12.jpg)
Diversity
Many member countries will not be able to meet all of the requirements of good practice….
• Manual proposes minimum standard requirements
• Technical assistance will be provided (by IMF and other agencies) to help meet Code requirements in developing and transition economies
![Page 13: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/13.jpg)
Technical Assistance &Cooperation
• Self-assessment against the Code provides a benchmark for TA needs and ex post evaluation
• Traditional TA will emphasize fiscal transparency impact
• Surveillance and technical consultations will identify specific country needs
• Need close cooperation on assessment and follow-up
![Page 14: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/14.jpg)
• ROSC being established as main vehicle to promote transparency in Fund surveillance activities
• 11 fiscal ROSCs completed and on the website, another 7 near completion, 15-20 proposed for FY 2000/1
• Follow-up being established as a routine surveillance activity
• Resource costs to the Fund (and countries) becoming substantial
• Coordination with other agencies still limited
Experience so far
![Page 15: A vehicle for improving government efficiency and governance](https://reader036.vdocument.in/reader036/viewer/2022082820/5697bf9c1a28abf838c9359d/html5/thumbnails/15.jpg)
• Routine consultation on ROSC preparation• ROSCs to provide a basis for TA coordination
and a benchmark for progress• Regional coordination to be encouraged• IFIs routinely advocate some specific standards
(e.g., disclosure of contingent liabilities)• Supreme Audit Institutions (national
audit/controller offices) encouraged to play a central role as transparency watchdogs
Institutionalization: some thoughts