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Public Financial Management and Accountability Training- Day 1

IntraHealth International・106 minutes read

The training session by Accelerating Support to Advanced Local Partners focuses on preparing organizations to serve as Prime Partners for PEPFAR, a global initiative led by the US Department of State to combat the HIV/AIDS epidemic and save lives. The training covers essential Public Financial Management principles, including fiscal policy, revenue mobilization, and budget planning, to equip participants with foundational skills for effective resource management and accountability.

Insights

  • House rules are established at the beginning of the training to ensure smooth learning, including muting microphones, using chat responsibly, and encouraging participation through virtual tools.
  • The President's Emergency Plan for AIDS Relief (PEPFAR) led by the US Department of State has been instrumental in saving over 25 million lives, preventing millions of HIV infections, and supporting countries in achieving epidemic control of HIV.
  • The training by Accelerating Support to Advanced Local Partners (ASAP) focuses on strengthening financial management systems, emphasizing Public Financial Management (PFM) principles, and aims to equip participants with foundational skills for effective resource management.
  • Efficient Domestic Resource Mobilization (DRM) through modern tax codes, tax authorities' empowerment, and fiscal decentralization plays a crucial role in building resilient fiscal futures, funding poverty reduction, and public services.

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Recent questions

  • What is PEPFAR?

    A global initiative combating HIV/AIDS.

  • What is the focus of the training?

    Public financial management principles and importance.

  • How does DRM contribute to financial health?

    By mobilizing revenue from diverse sources.

  • What are the key pillars of DRM?

    Enabling voluntary compliance, monitoring, and enforcement.

  • How do budget frameworks guide resource allocation?

    By aligning programs with funding constraints.

Related videos

Summary

00:00

"PEPFAR Training: Rules, Collaboration, and Impact"

  • House rules are outlined before the first session to ensure a smooth learning experience.
  • Participants are encouraged to use virtual hand raise or chat for questions and participation.
  • Dedicated Q&A portions are scheduled at the end of each session.
  • Muting oneself is advised to minimize disruptions.
  • Microphones should be muted when not speaking.
  • Sessions will be recorded for training and documentation purposes.
  • Chat should be used responsibly, avoiding sharing personal information.
  • Camera use is optional.
  • Technical issues should be directed to one's technical support team.
  • The training is a collaborative effort, with participants encouraged to propose additional house rules.
  • The training is hosted by Accelerating Support to Advanced Local Partners (ASAP) to prepare local organizations to serve as Prime Partners for PEPFAR.
  • PEPFAR, led by the US Department of State, aims to combat the HIV/AIDS epidemic globally.
  • PEPFAR has saved over 25 million lives and prevented millions of HIV infections.
  • PEPFAR has supported 20 countries in achieving epidemic control of HIV.
  • ASAP provides technical assistance to strengthen financial management systems, organizational capacity, and program management for local partners.
  • The training focuses on public financial management (PFM) principles and their importance in effective resource management.
  • The training spans two days, with each day lasting three hours.
  • The course covers four fundamental sessions on day one and four additional sessions on day two.
  • The schedule includes breaks for interaction and assistance.
  • A world map activity is used to connect participants and showcase diversity.
  • An annotation feature is used for marking locations on the map.
  • A poll is conducted to gather insights from participants for tailored training.

18:27

"PEPFAR Impact and PFM Training Overview"

  • Majority of participants in the organization have been in their roles for two to five years, with some having 10 to 15 years and others one to two years.
  • Familiarity with Public Financial Management (PFM) varies among participants, with some being very familiar, some neutral, and some not as familiar.
  • The importance of ASAP 2 in helping the USA achieve its goal of providing 70% of its funding to local Prime partners by 2025 is highlighted.
  • The President's Emergency Plan for AIDS Relief (PEPFAR) is a global initiative that has saved over 25 million lives and prevented millions of HIV infections.
  • Governments and organizations with strong public financial management capacity are better equipped to manage PEPFAR funding effectively.
  • The work done in the organization has a direct and positive impact on the lives of millions of people.
  • The training aims to equip participants with foundational skills to build effective and accountable PFM systems.
  • Fiscal policy involves the strategic use of government spending and revenue to influence the economy.
  • Revenue policy includes taxation on income and profits, while expenditure policy involves government spending decisions.
  • Globally, governments tend to spend more than they take in, with significant fiscal adjustments made during crises like the COVID-19 pandemic.

39:45

"Essentials of Public Financial Management Systems"

  • FAL discipline is crucial for controlling budget totals by setting expenditure limits at both aggregate and individual levels.
  • Allocative efficiency is vital for allocating resources in line with government priorities based on program fiscal and operational efficiency.
  • Operational efficiency in PFM ensures implementing programs at the lowest cost while maintaining service quality.
  • Revenue mobilization, budget planning, execution, oversight, and transparency are key components of PFM.
  • Laws, policies, and regulations govern PFM systems, emphasizing continuous improvement and reform efforts.
  • Stakeholders like the Ministry of Finance, subnational government bodies, central bank, legislature, NGOs, media, and citizens play critical roles in PFM.
  • Six key characteristics define a sound PFM system globally, including budget credibility, transparency, policy-based budgeting, predictability, records maintenance, and scrutiny.
  • Fiscal policy sets the goals, while PFM implements them effectively, ensuring sustainability, fiscal space, and accountability.
  • Access to valuable resources from organizations like the World Bank, IMF, OECD, and IC GFM supports ongoing learning and professional development in PFM.
  • The Public Expenditure and Financial Accountability Assessment (PEFA) offers valuable insights and benchmarks for countries seeking to enhance their PFM systems.

59:06

"Essential DRM for Financial Health"

  • Efficient domestic resource mobilization (DRM) is crucial for a country's financial health.
  • DRM involves modern and simple tax codes and laws to empower tax authorities for better collection practices.
  • Fiscal decentralization allows subnational governments to diversify income sources.
  • The ultimate goal of efficient DRM is to fund poverty reduction and public services.
  • Objectives of the session include understanding DRM, revenue generation methods, and the impact of COVID-19 on DRM.
  • DRM involves revenue generation from tax sources like income, real estate, sales, and non-tax sources like user fees.
  • Tax revenue and non-tax revenue are critical components of DRM.
  • Revenue systems should be sufficient, simple, stable, and equitable for optimal financial management.
  • Tax administrations play a vital role in collecting taxes efficiently and effectively.
  • COVID-19 posed challenges to DRM, leading governments to implement relief, stimulus, and recovery-oriented tax measures.

01:18:39

Tax Policy Impacts and Budget Frameworks

  • Enhanced personal income tax allowances and credits were observed during the pandemic, such as the child tax credit that lifted millions of children out of poverty.
  • The child tax credit had a significant impact on education and poverty levels, sparking ongoing public debate even after its expiration.
  • Tax incentives for investment were also highlighted as a common experience among the group.
  • DRM creates fiscal space for sustainable budgeting through revenue mobilization from diverse sources.
  • Tax administration plays a critical role in collecting taxes efficiently and at minimal cost.
  • Three key pillars for governments to focus on include enabling voluntary compliance, monitoring compliance, and enforcing it.
  • DRM contributes to building resilient fiscal futures by utilizing domestic resources, fostering compliance, and exploring innovative technologies.
  • The budget cycle consists of four stages: budget planning, approval, execution, and oversight.
  • Budget planning involves developing a macroeconomic framework, aligning programs with funding constraints, and submitting a comprehensive budget to the legislature.
  • Various budget frameworks, such as the macroeconomic, fiscal, macro fiscal, and medium-term expenditure frameworks, guide budget formulation and execution.

01:47:11

Government Budget Frameworks: Essential for Resource Allocation

  • Budget Frameworks are crucial for government resource allocation, fiscal management, and future planning.
  • Canada's 2012 fiscal framework exemplifies how economic and fiscal factors influence budgetary decisions.
  • The budget circular, issued by the Ministry of Finance, guides MDAs in developing funding requests.
  • Budget circulars should outline government priorities, laws, agency responsibilities, and submission details.
  • They also specify budget coverage, revenue estimates, expenditure justifications, and submission formats.
  • Information on Personnel cost increases, justifications, and budget request timing is crucial in budget circulars.
  • Budget calendars, mandated by legislation, provide a timeline for budget processes and enactment.
  • National development plans outline long-term visions, policies, and priorities for a country's progress.
  • Line item, program, performance, and zero-based budgets offer varying approaches to budgeting.
  • Budget targeting, like gender responsive budgeting, aligns budget allocations with specific goals and priorities.

02:04:37

Gender-responsive Budgeting and PFM Reforms Summary

  • Gender equality indicators can be applied at national or subnational levels.
  • Gender responsive PFM assessment is conducted annually alongside standard P assessment.
  • Gender responsive PAA indicators are designed as questions mapped to relevant PFA indicators.
  • Assessments include gender impact analysis in budget policy proposals and gender integration in public investment management.
  • Gender responsive indicators evaluate how PFM systems address diverse needs of men, women, and subgroups.
  • Budget targeting can be applied to other populations like people with disabilities or ethnic minorities.
  • Jordan transitioned to a results-oriented budgeting framework with multi-year budget programs.
  • Budget programs include budget estimates for base year and three subsequent years, program objectives, and performance indicators.
  • Reforms aimed to align budget programs with Jordan's National development strategy and introduce gender-based budgeting.
  • Supplemental budgets are used to approve changes, allocate additional funds, cover shortfalls, and adjust for inflation.
  • Governments globally responded to COVID-19 with measures like cash transfers, loans, debt relief, and tax credits.

02:23:15

Government Budgets: Prioritizing Education, Healthcare, and Crisis Relief

  • Efforts were made to minimize the debt burden for young people seeking education and contributing to society.
  • Transportation and healthcare accessibility, including vaccines and testing, were prioritized during the pandemic.
  • Governments subsidized vaccine development and provided grant money to pharmaceuticals and health institutes.
  • Budgets play a crucial role in planning, resource allocation, and supporting national priorities.
  • Different budgeting approaches like line item, performance-based, and zero-based budgets have unique advantages and limitations.
  • During global crises, budgets undergo significant modifications with increased emergency expenditures.
  • Targeting interventions for informal economy sectors is critical, with cash transfer programs being more effective for vulnerable populations.
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