[{"bbox": [83, 105, 1147, 156], "category": "Page-header", "text": "In conclusion, the authorities are pursuing a stability-oriented macroeconomic policy and the eligibility criterion is met."}, {"bbox": [147, 181, 524, 210], "category": "Section-header", "text": "### 2.3.3. Public Financial Management"}, {"bbox": [83, 231, 1147, 471], "category": "Text", "text": "The latest PEFA assessment for Bangladesh (2015) was endorsed by the Government in June 2016. It noted the strides made in PFM performance over the past five years resulting in improvement in 7 out of 28 key elements (6 of the 7 progressed to scores B+ or A). The diagnostic work also highlighted a number of weaknesses, notably in budget execution, internal control framework, financial reporting and internal audit. Based on the findings of the PEFA, the Government put forward a PFM Reform Strategy (PFMRS) 2016-2021 which incorporates the PFM policy guidelines and related objectives from the 7FYP. A PFM Action Plan (2018-23) to implement the PFM Reform Strategy (2016-21) was developed through a consultative process with other Government stakeholders and approved by the Finance Minister in September 2018. The guiding principles of the reforms remain country ownership, gradualism, with a stronger focus on getting the basics in place and a change management or institutional reform."}, {"bbox": [83, 481, 1147, 1040], "category": "Text", "text": "Overall, the country's continuous and positive engagement in PFM reform has been instrumental in addressing identified weaknesses. Nonetheless, various remedial actions and priorities for reform in PFM continue to lag behind. GoB has embarked on a sequenced programme of reforms to improve the PFM system. There are several PFM reform projects, including USD 170 million PFM reform program \"Strengthening PFM to enable Service Delivery\" (SPFMS) supported by USD 100 million credit from the World Bank and USD 70 million commitment of contribution from GoB. In addition, the EU approved a EUR 10 million grant and started implementation from September 2020 to support the National Board of Revenue (NBR), Parliament Secretariat and the Auditor and Comptroller General to strengthen the area of domestic revenue mobilisation and accountability. With the remaining fund of USD30 million (out of total USD 98 million) \"Strengthening Public Expenditure Management Programme\" (SPEMP) World Bank-executed technical assistance (funded by UK, Canada and EU) supports various components of the PFM Action Plan. JICA approved the second phase of USD 5 million to support Public Investment Management. The IMF through SARTTAC continues to provide capacity building support on various PFM areas. In the area of procurement, the World Bank-funded Public Procurement Reform Project II is working on consolidating two areas: e-Government Procurement and contract management. In 2020, the National Board of Revenue (NBR) has planned five strategies to boost its revenue collection offsetting the negative impacts of the Covid-19 pandemic. The strategies are: Using electronic fiscal devices (EFDs) in all business entities, expansion of income tax net, implementation of the Value Added Tax (VAT) law, automation of bonded warehouses and improving non-tax revenue collection. Revenue reforms are also intensifying with the World Bank's VAT Improvement programme. Other relating capacity development efforts in tax administration such as development of Medium Term Revenue Strategy, automation of business processes and change management remain in force - although their effectiveness and impact in higher collections and improved tax compliance are not yet visible."}, {"bbox": [83, 1051, 1147, 1318], "category": "Text", "text": "At sector level, the World Bank released in May 2021 a Public Expenditure Review (PER) on social protection. It includes a solid analysis and recommendations to sustain the reform efforts, notably on allocative efficiency, targeting and institutional strengthening. No fiduciary risk assessment has taken place yet. The SPBMU at MoF/FD established a MIS to improve capacity to manage, track and evaluate sector expenditure, increase value for money and bring efficiency into the delivery of transfers (G2P system). While progress is strong, only a dozen programmes are concerned for now and additional efforts will be needed to migrate all other cash transfer programmes into the system – which needs to be robust when the volume of transactions scales up. This will require further technical assistance, which may be considered under this action. The action will also provide support to selected areas that contribute to mitigate the potential financial and fiduciary risks in the sector, ensuring that PFM capabilities are developed and that control duties and responsibilities are segregated within core line Ministries and executing agencies."}, {"bbox": [83, 1329, 1147, 1382], "category": "Text", "text": "In conclusion, the public finance management reform strategy is sufficiently relevant and credible, including on domestic revenue mobilisation, and the eligibility criterion is met."}, {"bbox": [147, 1405, 646, 1434], "category": "Section-header", "text": "### 2.3.4. Transparency and Oversight of the Budget"}, {"bbox": [83, 1454, 1147, 1642], "category": "Text", "text": "The level of disclosure of budget information has improved in recent years and budgets and budget execution reports are publicly available. Bangladesh has made significant improvements in the area of fiscal transparency. Notably, in the social security system, there were improvements with respect to the publishing of the approved budget of the sector in detail by programmes/schemes over the past five years. Likewise, GoB makes available the budget and execution (i.e. \"utilisation\") of the budget for every sector and the respective Ministries/Divisions, including a segregation of both development and non-development expenditures, though these present a delay in reporting of two years. MoF/FD publishes annual budgetary information on social security under the heading of the \"Social Safety"}, {"bbox": [1040, 1663, 1158, 1687], "category": "Page-footer", "text": "Page 10 of 27"}]