[{"bbox": [97, 152, 1134, 206], "category": "Text", "text": "not formally scrutinise audit reports, despite these being submitted to the legislature annually and in a relatively\ntimely manner."}, {"bbox": [97, 218, 1043, 246], "category": "Text", "text": "In conclusion, the relevant budget documentation has been published and the eligibility criterion is met."}, {"bbox": [86, 286, 604, 318], "category": "Section-header", "text": "3 DESCRIPTION OF THE ACTION"}, {"bbox": [86, 350, 509, 382], "category": "Section-header", "text": "3.1 Objectives and Expected Outputs"}, {"bbox": [97, 397, 1134, 452], "category": "Text", "text": "The Overall Objective (Impact) of this action is: to improve the effectiveness and responsiveness of nascent Somali public institutions in performing core state functions"}, {"bbox": [97, 462, 1134, 515], "category": "Text", "text": "The Specific Objective (Outcome) of this action is: improved Government capacity and allocation of resources to deliver basic social services (with a focus on education)"}, {"bbox": [97, 528, 1100, 556], "category": "Text", "text": "The Induced Outputs to be delivered by this action contributing to the corresponding Specific Objectives are:"}, {"bbox": [97, 568, 1134, 619], "category": "List-item", "text": "- Progress with the implementation of intergovernmental agreements required to reach a constitutional settlement"}, {"bbox": [97, 620, 1036, 648], "category": "List-item", "text": "- Increased Somali Government(s) contribution to funding and managing education service delivery"}, {"bbox": [97, 648, 929, 675], "category": "List-item", "text": "- Improved Domestic Revenue Mobilisation and Public Financial Management systems"}, {"bbox": [86, 701, 368, 729], "category": "Section-header", "text": "3.2 Indicative Activities"}, {"bbox": [97, 747, 479, 775], "category": "Text", "text": "Activities relating to Induced Outputs 1.1"}, {"bbox": [97, 786, 1134, 1026], "category": "Text", "text": "For all the induced outputs, budget support and TA (funded via a complementary decision – see PFM eligibility section for details) will support policy dialogue and reforms in the three policy areas identified by this operation, namely fiscal federalism, education and PFM/financial governance; the common thread being an intent to **strengthen capacity at federal and state levels to perform core government functions for enhanced state legitimacy**. The agreement of **specific performance indicators and annual targets** will contribute to guide the policy dialogue and monitor progress in the implementation of key reforms in those areas. In many cases this will be done jointly with the World Bank and IMF, so as to strengthen signalling for greater impact, while ensuring a common analytical basis and monitoring framework (by aligning with a number of policy benchmarks from the ECF programme and WB's Recurrent Cost and Reform Financing-RCRF programme)."}, {"bbox": [97, 1037, 1134, 1221], "category": "Text", "text": "This will also ensure a **harmonised approach to policy dialogue on shared EU-IFIs reform agendas, and minimise transaction costs** on the FGS side, the capacity of which is already stretched as it grapples with a crowded policy agenda and competing demands from internal and external actors. The FGS request to minimise the number of targets and maximising synergies with other ongoing IFI economic reform programmes is also in line with findings from an evaluation of EU state building contracts 2012-18, which points out the need to reduce the number of VT indicators, which also have a tendency to be overly ambitious and too scattered across policy areas."}, {"bbox": [97, 1235, 1134, 1369], "category": "Text", "text": "Close coordination and collaboration with IFIs will continue to be critical: building on its predecessor programme, this SRBC will continue to support Somalia state building process and progress towards debt relief. In conjunction with the World Bank's planned series of DPOs, the operation will enable the creation of much needed fiscal space, thereby support the FGS in providing **financial assurances to the IMF** (in the framework of the ongoing ECF supported programme) and help **underpin macroeconomic stabilisation measures**."}, {"bbox": [97, 1380, 1134, 1462], "category": "Text", "text": "This will in turn ensure Somalia is able to manage and build resilience to the destabilising effects of external shocks (such as rising food and fuel inflation or the recurrent climate-induced hazards), while **remaining on-track with the IMF ECF arrangement** (a pre-condition of the HIPC process)."}, {"bbox": [97, 1473, 1134, 1633], "category": "Text", "text": "Conditionality and policy dialogue linked to Variable Tranche (VT) performance indicators will provide **performance incentives and reinforce government commitment on urgent reforms** required in the three induced output areas. Dialogue around the **eligibility criteria** will be used to ensure that core policy and administrative reforms in PFM/DRM and wider public sector management and accountability (e.g. civil service reform) are sustained. These are benefitting from large scale support/TA from IFIs, and will be indirectly supported through a complementary Decision that will finance a large package of TA to bolster Somalia's external audit"}, {"bbox": [1027, 1680, 1144, 1706], "category": "Page-footer", "text": "Page 11 of 26"}]