Public Financial Management for PRSP - Deutsches Institut für ...
Public Financial Management for PRSP - Deutsches Institut für ...
Public Financial Management for PRSP - Deutsches Institut für ...
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<strong>Public</strong> <strong>Financial</strong> <strong>Management</strong> <strong>for</strong> <strong>PRSP</strong> Implementation in Malawi<br />
2. Resources <strong>for</strong> administrative PFM processes<br />
The substantial lack of funds in the civil service, even <strong>for</strong> the most<br />
basic administrative processes, threatens the functioning of the PFM<br />
system and leads to poor budgetary outcomes.<br />
3. Donor impact on PFM<br />
Poorly coordinated and unaligned donor activities tend to weaken<br />
annual and medium-term budget planning and contribute to undermining<br />
budget credibility.<br />
4. Coordination <strong>for</strong> PFM<br />
Poor coordination between ministries, departments and agencies as<br />
well as between different levels of government undermines the<br />
whole budget process.<br />
a) Horizontal coordination at central government level (MoF-<br />
MEPD)<br />
Although responsibilities between MoF and MEPD are clearly assigned<br />
to one of the two ministries in most cases, coordination problems<br />
arise, as MoF sometimes seems to push through its own priorities.<br />
b) Vertical coordination in general<br />
Coordination between central and local government level is characterised<br />
by a highly hierarchical system, which results in poor vertical<br />
in<strong>for</strong>mation flows, in particular from the bottom to the top. With<br />
regard to in<strong>for</strong>mation flows, unclear distribution of responsibilities<br />
and the introduction of new PFM tools as well as local authorities’<br />
dependency on transfers from central government, this leads to delays<br />
and uncertainty in the budget process. Finally, this results in in<strong>for</strong>mal<br />
practices at local government level.<br />
c) Vertical-sectoral coordination (MoE, MoH)<br />
As devolution in the sectors has not gone very far yet, communication<br />
and coordination between central and deconcentrated units of<br />
sector ministries do not appear to pose major problems yet. However,<br />
the envisaged devolution of sector responsibilities to local<br />
German Development <strong>Institut</strong>e 87