ODI 2021-2025 Budget Strengthening Initiative
Contribution ID : SE-0-SE-6-11794This website displays open data about Swedish aid, which shows when, to whom and for what purpose Swedish aid is paid out, as well as what results it has produced. This page contains information about one of the contributions financed with Swedish aid.
Since the political chaos that followed the coups in 2012 and 2020, Mali has done much to modernize its institutions so that they become more efficient, transparent and inclusive both in terms of governance and the community service they offer. As part of this work, Mali has implemented the second generation institutional development program (PDI 2017-2027) an...
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Since the political chaos that followed the coups in 2012 and 2020, Mali has done much to modernize its institutions so that they become more efficient, transparent and inclusive both in terms of governance and the community service they offer. As part of this work, Mali has implemented the second generation institutional development program (PDI 2017-2027) and the third generation reform in the management of public finances (PREM 20172021). The latter constitutes the strategic framework for the proposed BSI support. Through its advisory experience, BSI is a natural choice of partner to help the Malian government develop important government financial governance reforms that are necessary to strengthen its government institutions. Through ODI, Sida has supported an initial effort and a bridging effort to help Mali develop its budget processes in 2019-2020. The project has reviewed priorities in terms of reforms and the need for technical support to the Malian government through small-scale support in the areas of government finances and financial management. In collaboration with Mali, ODI has developed a four-year initiative in which support is proposed in the following areas: 1. Budget transparency 1.1 Budget analysis and tools for budget transparency 2. Implementation of program budgeting 2.1 Strengthened governance dialogue within two sector ministries 2.2. Thematic budget analysis and reporting, including gender budgeting 2.3 Implementation of the Budget Engagement Plan 3. Accounting reforms and support to the Treasury 3.1 Cash handling 3.2 Accrued accounting 4. Fiscal decentralization and financial governance at the local level 4.1 New financing regimes for CTs 5. Mobilization of revenue to the Treasury 5.1 International taxation 5.2 Analysis of tax effects As a cross-cutting theme for these five areas of support, the BSI program will support the Malian government's efforts to digitize and use information technology to modernize public administration. During the initial phases of the effort, BSI has focused on engaging key government institutions given their interest in cooperating and their demand for long-term support from BSI. These institutions are: Ministry of Economic Affairs and Finance (MEF-Ministère de l'Economie et des Finances) and the following institutions * Unit for Support for Government Financial Reforms (CARFIP-Cellule d'Appui à la Réforme des Finances Publiques) * Agency for Budget (DGB-Direction Générale du Budget) * The Tax Authority (DNTCP - National Directorate of Treasury and Public Accounting) * The Tax Agency (DGI- Direction Générale des Impôts) * Unit for support for decentralization (CADD / MEE - Cellule d'appui à la decentralization et à la déconcentration) Ministry of Energy and Water (MEE- Ministry of Energy and Water) and the following institutions * Directorate of Finance and Materiel (DFM - Direction des Finances et du Matériel) * Program managers (RPROG) and their respective support units * Decentralization Support Unit (CADD / MA) The Ministry of Agriculture and the following subordinate institutions * Directorate of Finance and Materiel (DFM - Direction des Finances et du Matériel) * Program managers (RPROG) and their respective support units * Decentralization Support Unit (CADD / MA) Ministry of Decentralization and Land Administration (MDAT- Ministry of Decentralization and Territorial Administration) * The Authority for Territorial Societies (DGCT - Direction Générale des collectivités territoriales) The embassy believes that a long-term approach in collaboration with the Ministry of Finance and the Ministry of Finance as well as selected institutions is appropriate.
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Result
On budget transparency, ODI BSI-Mali team assisted the budget directorate to ownership of the website created during the bridging phase that allows citizens to track government expenses. Although some support is still needed the website is live at www.budget.gouv.ml and has been updated with recent financial data including budget data for 2020, 2021, and 2022, and expenditure data for 2019, 2020 and 2021, as well as various visualisations. The website is recognised as a potential vehicle to communicate about budget performance, as well as a means to strengthen Malis OBI scores.Further reviews are taking place to develop the next phase of the transparency initiative. On programme budgeting, the Programme Managers (Responsable de Programme - RPROGs) in both ministries (Ministry of Rural Development and Ministry of Mining, Energy and Water) now have Mission Letters which explain their new responsibilities and are able to access data extraction reports from the Budget IT tool (PRED) to support their decision-making. BSI Mali is further supporting the RPROGs to make effective use of the Lettres de Mission and the PRED extractions as well as coordination between the RPROGs and their project managers. Both ministries have been involved in discussions and agreed the key objectives and workplan for improving programme budgeting. 2 long-term experts from the BSI Mali team will start providing operational support to the Ministries in 2022. On budget analyses and its impact on cross cutting issues, some marked progress have taken on expenditure classification in Ministry of Education, Ministry of Rural Dev. and Ministry of Mining, Energy and Water in terms of understanding the methodology to identify for each budget line (programme, action, activity) the level of gender sensitivity and following it through an analytical template. Some progress in Ministry of Health and Social Dev. and Ministry of Promotion of Women and children. On the status of government spending, A final version of a quarterly commitment plan (PEB) at the sectorial level has been approved in a formal workshop and disseminated then implemented in the PRED IT tool of the DGB. A Ministers decision was communicated to all DFMs to fill the new format and a process has been enforced in 8 pilot ministries first then in all 25 of them. As of the 1st of Jan. all sectorial ministries (work coordinated with DFMs) have filled their commitment Plans for the first quarter. On treasury and accounts front, BSI has assisted in outlining new treasury plans in line with international standards; this includes commitment plan data and improved integration of Public Companies revenues in the Single Treasury Account (STA). Pilot public companies have been chosen to start implementing the change the new IT cash management module of the Treasury Department is being tested and the team provided guidance on what data to request from the integrator. New asset management and fixed assets procedures are being developed and will be integrated into AICE when the corresponding module is implemented. A note for improving the quality of financial statements in the Balance Sheet and updating the roadmap for data cleansing has been shared with the Accounting Division of the Direction Nationale du Trésor et de la Comptabilité Publique (DNTCP. The opening balance sheet was produced although data reliability still needs improvement. On fiscal decentralisation and local finance management, BSI is developing a training manual for accountants and decision makers which is close to completion. This will support the implementation of the new PFM system for local governments in close coordination with the DNTCP and the Direction Générale des Collectivités Territoriales (DGCT) in cooperation with the World Bank PDREAS Program. Discussions with key stakeholders regarding the dissemination of the manual are taking place. On drevenue mobilisation, following an in-depth stock-take of the legal and regulatory framework regarding the taxation of multi-national corporations, the Direction Générale des Impôts (DGI) has requested BSI Mali support on two audit casefiles with risks of international tax avoidance for 2022 Recommendations on transfer pricing good practices and possible improvements were provided including a list of suitable Transfer Price reference databases. Also for tax impact analysis, an approach and objectives for the diagnostic and capacity assessment have been discussed and agreed with the relevant stakeholders and terms of reference for an expert to conduct this were finalised
The overarching objective of the four-year project is to build capacities of the Malian government in strengthening budget comprehensiveness, establishing a credible state budget while striving for a fair, transparant and accountable distribution of public services to Malian citizens. 1.Support to budget transparency: Support area objective: The transparency of governmental action through the budget is strengthened allowing non-state actors to constructively engage with and hold the government accountable. 1.1 Workstream objective: The Direction Générale du Budget (DGB) is able to effectively communicate information on public finances to citizens increasing their awareness on budget and spending decisions. 2. Support to the implementation of programme budgeting: Support area objective: The efficiency of public spending in a resource-scarce environment is improved, optimising expenditure in line with national priorities. 2.1 Workstream objective: The two sector ministries (Ministère de l´Agriculture and Ministère de l´Energie et de l´Eau) apply a greater result and performance orientation in the implementation of their mandate achieving a more efficient and effective delivery of services to the population. 2.2 Workstream objective: The Government of Mali analyses the impact of its budget decisions on important cross-cutting issues, e.g. gender, enabling it to take appropriate policy measures to improve them. 2.3 Workstream objective: Government spending forecasts and comprehensiveness within and across service sectors is improved strengthening budget execution. 3.Support to treasury and accounting reforms: Support area objective: The Malian State has a more comprehensive and accurate view of its fiscal and financial position, strengthening good financial governance. 3.1 Workstream objective: The use of available resources is improved, and timely payments of public commitments are strengthened, safeguarding public investment budgets and reinforcing the efficiency of public spending in the budget execution process. 3.2 Workstream objective: The Direction Nationale du Trésor et de la Comptabilité Publique (DNTCP) produces new and improved financial statements, providing a better understanding of the financial position and improving forecasting capacity. 4. Support to fiscal decentralisation and local public financial management: Support area objective: The public financial management (PFM) capacities, competences and resources available to Collectivités territoriales (CTs) are reinforced strengthening their ability to deliver services. 4.1 Workstream objective: The capacity of Collectivités territoriales (CTs) to manage their public finances in an effective and accountable manner is strengthened. 5. Support to domestic revenue mobilisation: Support area objective: The Government of Malis domestic revenue mobilisation is strengthened, gradually raising its tax-to-GDP ratio. 5.1 Workstream objective: The ability of the Direction Générale des Impôts (DGI) to effectively tax and audit multinational companies is reinforced, increasing domestic revenue from this taxpayer segment. 5.2 Workstream objective: The capacity of the Malian Government to conduct tax impact analysis is strengthened, informing sustainable policies for mobilising domestic revenue. Support the digitalization of public financial management processes: Cross-cutting objective: Public financial management processes relating to the support areas are automated using appropriate information technologies, strengthening the efficiency and accountability of public service delivery.
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