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Public Financial Management for PRSP - Deutsches Institut für ...

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Stefan Leiderer et al.<br />

– Improved coordination between MoF and MEPD: Coordination<br />

between the Ministry of Finance (MoF) and the Ministry of Economic<br />

Planning and Development (MEPD), in particular with regard<br />

to ensuring the consistency of the <strong>Public</strong> Sector Investment<br />

Programme (PSIP) and the capital budget, is not always satisfactory.<br />

GoM should consider establishing a mechanism guaranteeing consistency<br />

of the first year of the PSIP and the capital budget. This<br />

seems to be a necessary precondition to increase transparency<br />

within the system, en<strong>for</strong>ce the accountability of MoF and MEPD<br />

and to ensure that national investment projects are really selected<br />

according to national priorities as stated in the M<strong>PRSP</strong>. One necessary<br />

precondition <strong>for</strong> this is that sector ministries follow <strong>for</strong>mal procedures<br />

and submit their project proposals exclusively to MEPD.<br />

– Better involvement of local stakeholders in the recruitment of<br />

District Secretariat staff to strengthen accountability between<br />

local entities: The recruitment process <strong>for</strong> key staff is still very<br />

long, unpredictable and centralised, above all <strong>for</strong> the local government<br />

level. In the medium term it may prove useful to increase the<br />

participation of local authorities in the selection of candidates <strong>for</strong><br />

District Secretariats so that candidates feel more accountable to the<br />

local stakeholders. This could be achieved, <strong>for</strong> example, by changing<br />

the composition of the recruitment commission in the Ministry<br />

of Local Government and Rural Development (MoLGRD), giving<br />

more weight to local stakeholders such as the district commissioners<br />

and representatives of the District Executive Committee and District<br />

Assemblies. In the long run, the GoM could take into consideration<br />

whether responsibilities <strong>for</strong> the recruitment of local level staff<br />

should be transferred to the districts in order to reduce bureaucracy<br />

and increase the accountability of local civil servants to local government.<br />

– Per<strong>for</strong>mance-based resource allocation to local assemblies: Local<br />

assemblies which are more committed to own revenue generation<br />

should benefit from central government transfers, based on the<br />

“per<strong>for</strong>mance matrix”, created by the NLGFC. This benchmark tool<br />

can be used to strengthen the awareness and creativity among local<br />

assemblies to become more autonomous in financial matters.<br />

12 German Development <strong>Institut</strong>e

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