[{"bbox": [85, 150, 439, 179], "category": "Section-header", "text": "### 2.3.3 Public Financial Management"}, {"bbox": [96, 193, 1135, 407], "category": "Text", "text": "The PFM reform agenda appears to be strong and some PFM results have gradually improved since 2021. A five-year PFM strategy was published in early 2021 and has become a key reference point with quarterly reports on implementation. The PFM department at the Ministry leads and effectively co-ordinates the reforms, ensuring engagement of relevant stakeholders and providing a forum for regular discussions and information sharing. A Public Expenditure and Financial Accountability (PEFA) assessment was launched, after delay, and in spite of experiencing some difficulties, will provide by mid-2023 an update on strengths and weaknesses of the PFM system. Most weaknesses generally reflect weak capacity of the Ministry of Finance and the public administration in general."}, {"bbox": [96, 435, 627, 462], "category": "Text", "text": "Progress could be observed in several areas, in particular:"}, {"bbox": [134, 491, 795, 518], "category": "List-item", "text": "* The draft PFM law was prepared following extensive consultations."}, {"bbox": [134, 518, 806, 545], "category": "List-item", "text": "* New public procurement law was passed after several years of delay."}, {"bbox": [134, 545, 1135, 624], "category": "List-item", "text": "* MoFEA started publishing audited financial reports of state-owned enterprises and advanced preparations for signing performance management contracts with the first State Owned Enterprises (SOEs) in a bid to improve their oversight."}, {"bbox": [134, 624, 1135, 677], "category": "List-item", "text": "* MoFEA formalised an engagement with the National Assembly aimed at strengthening capacity of relevant parliamentary committees to assess a budget and budget-related documents."}, {"bbox": [134, 677, 1135, 731], "category": "List-item", "text": "* Local authorities prepared their 2023 budget in a new programme-based format, more conducive to managing their finances."}, {"bbox": [134, 731, 1135, 808], "category": "List-item", "text": "* The roll out of a new version of Automated System for Customs Data ASYCUDA World to customs offices offering the potential to improve customs collection (the effects of the rollout have not yet been assessed) has started."}, {"bbox": [134, 808, 1135, 861], "category": "List-item", "text": "* A Tax administration Diagnostic Assessment Tool (TADAT) assessment is currently performed by the World Bank."}, {"bbox": [134, 861, 1135, 916], "category": "List-item", "text": "* The capacity of the Gambia Revenue Authority, a body responsible for collection of most tax and customs revenue is relatively weak but improving."}, {"bbox": [134, 916, 1057, 943], "category": "List-item", "text": "* Progress has been made regarding the conclusion of performance contracts with 3 of the (SOEs)."}, {"bbox": [96, 971, 968, 999], "category": "Text", "text": "Important objectives as formulated in the PFM Strategy 2021-2025 include the following ones:"}, {"bbox": [134, 1027, 753, 1054], "category": "List-item", "text": "* Improving fiscal forecasting (revenues, expenditures and debt)."}, {"bbox": [134, 1054, 1135, 1107], "category": "List-item", "text": "* Increasing the Ministries, Departments and Agencies (MDA's) capacity for Programme Based Budgeting (PBB)."}, {"bbox": [134, 1107, 870, 1134], "category": "List-item", "text": "* Strengthening the medium-term perspective, with larger role of the MTEFF."}, {"bbox": [134, 1134, 538, 1161], "category": "List-item", "text": "* Increasing domestic revenue collection."}, {"bbox": [134, 1161, 1069, 1188], "category": "List-item", "text": "* Improving tax compliance through process enhancement and risk-based compliance management."}, {"bbox": [134, 1188, 859, 1215], "category": "List-item", "text": "* Enhancing the legal and regulatory framework for state-owned enterprises."}, {"bbox": [134, 1215, 1066, 1242], "category": "List-item", "text": "* Strengthening debt management to limit risks and keep debt servicing costs at manageable levels."}, {"bbox": [134, 1242, 1097, 1269], "category": "List-item", "text": "* Better co-ordination of donor activities and ensuring mobilisation of financial resources from donors."}, {"bbox": [134, 1269, 622, 1296], "category": "List-item", "text": "* Digitalisation of the public procurement process."}, {"bbox": [134, 1296, 935, 1323], "category": "List-item", "text": "* Standardisation of the legal and regulatory framework for the procurement process."}, {"bbox": [96, 1349, 1135, 1403], "category": "Text", "text": "The outlook for reforms is broadly favourable, given government's efforts to engage all stakeholders and the sound level of complementarity of donors' support to assist the MoFEA on PFM reforms."}, {"bbox": [96, 1431, 1135, 1645], "category": "Text", "text": "Further efforts are required, in particular as regards (i) enhancing the capacity of tax and customs administration to improve tax collection so as to go beyond the current level of domestically collected revenue (which currently stands at only 13% of GDP), (ii) improving multiannual fiscal planning and increasing the role of Medium Term Fiscal Framework, (iii) the reform of state-owned enterprises (SOEs), (iv) operating a solid system for granting and managing tax expenditures, and (v) strengthening debt management and ensuring that this function is well co-ordinated with macro-fiscal forecasting and budgeting. Moreover, improving the presentation of the budget (currently focused on inputs and institutions-allocated public funds, without link to outputs) would help make budgetary adjustments reflecting emerging macroeconomic challenges or policy priorities."}, {"bbox": [1027, 1680, 1145, 1706], "category": "Page-footer", "text": "Page 11 of 28"}]