[{"bbox": [97, 153, 1135, 207], "category": "Text", "text": "problem analysis planned to be addressed by this action is described in section 2. At the same time, the findings of this analysis were used to set the specific objectives/outcomes as follows:"}, {"bbox": [135, 220, 1135, 274], "category": "List-item", "text": "* Institutionalise a policy and performance focus into the budget cycle. Align the \"top-down\" policy priorities and fiscal targets with the bottom-up process and mechanisms that govern resource allocation;"}, {"bbox": [135, 276, 1116, 302], "category": "List-item", "text": "* Enhance domestic revenue mobilisation to increase fiscal space for financing sustainable development;"}, {"bbox": [135, 304, 1135, 384], "category": "List-item", "text": "* Ensure the alignment and effectiveness of expenditure with the sustainable development agenda focusing on gender/climate-sensitive policies, marginalised groups and expanding current European Union (EU) support for Performance-Based Budgeting (PBB) at national and sub-national level."}, {"bbox": [97, 395, 635, 422], "category": "Text", "text": "The content of these outcomes is elaborated briefly below."}, {"bbox": [97, 434, 1135, 673], "category": "Text", "text": "Institutionalising a policy is part of the top-down approach covered by projects in the past. The establishment of a Medium-Term Fiscal Framework (MTFF) provided the key context for the forward-looking Fiscal Strategy and was key in informing the decisions on both the factors that affect the overall budget size and the allocations by sectors. Therefore, the action is now focused mainly on tax policy orientation, fiscal risks analysis and fiscal risks management strategies, sectoral allocations, aligning the medium term policy priorities with the annual budget process (Output 1.1) as an area that deserves still more attention. The remaining outputs 1.2 – 1.5 related to Outcome 1 are devoted to bottom-up budgeting with the aim to strengthen ongoing activities in PBB and speed up further implementation. This means revising and developing a set of methodologies/guidelines/instructions on PBB to be distributed among the participating institutions at national and sub-national levels."}, {"bbox": [97, 686, 1135, 925], "category": "Text", "text": "Enhancing domestic revenue mobilisation to increase fiscal space for financing inclusive growth and development is the second outcome. The contributing Outputs 2.1 and 2.2 are targeted to increase the fiscal space by improving the efficiency of collecting non-distortionary revenues that do not undermine the competitiveness of production sectors. Recommendations and supporting analysis will demonstrate how to develop the tax system as such that it will support the development of a business environment that is structurally geared towards supporting the development policies as set out in the Government's strategic documents, including the government's efforts to promote sustainable finance and channelling more capital into sustainable projects and businesses. Output 2.3 further supports revenue forecasting by the development of tax estimation and projection models that accurately generate forecasts for use in the budget process and Medium Term Expenditure Framework (MTEF)."}, {"bbox": [97, 936, 1123, 1070], "category": "Text", "text": "Outcome 3 is aimed at ensuring the effectiveness of expenditures of public institutions using the PBB system designed by Outcome 1. A difference in coverage between outcomes 1 and 3 is to be made. Outcome 1 is aimed at strengthening the existing PBB through a coherent set of methodologies/guidelines/recommendations, including addressing the crosscutting themes. On the other hand, Outcome 3 is connected with the PBB implementation, i.e. practical application of the outputs produced under Outcome 1 to:"}, {"bbox": [135, 1083, 1135, 1137], "category": "List-item", "text": "* Compile a programme structure for the country, aligned with the sustainable development agenda (output 3.1);"}, {"bbox": [135, 1150, 1135, 1231], "category": "List-item", "text": "* Prepare the structure of a particular programme at pilot ministries or local governments, reflecting (i) the principles of gender equality in budgeting, (ii) green PFM with climate-sensitive policies in public investment management, and (iii) focussing on youth as a driver for change (output 3.2);"}, {"bbox": [135, 1244, 1135, 1325], "category": "List-item", "text": "* Develop and use digital tools – developing forms and templates enabling the electronic submission of the prepared budget to the Ministry of Finance (MoF). In this context, the existing budget classification must be revised to allow the budget formulation by programmes (output 3.3)."}, {"bbox": [97, 1337, 959, 1364], "category": "Text", "text": "Overall, a specific focus will be made on integrating a climate perspective in the PFM system."}, {"bbox": [97, 1376, 708, 1403], "category": "Text", "text": "The action is expected to be implemented in indirect management."}, {"bbox": [85, 1444, 325, 1475], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [85, 1509, 236, 1536], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [85, 1557, 1135, 1584], "category": "Text", "text": "The Action is a continuation of ongoing EU support and other donor interventions for strengthening PFM reforms."}, {"bbox": [1038, 1682, 1145, 1707], "category": "Page-footer", "text": "Page 4 of 27"}]