[{"bbox": [68, 113, 1157, 574], "category": "Table", "text": "<table><tr><td></td><td>vulnerable to falling back into poverty/below the poverty line</td><td></td><td></td><td></td></tr><tr><td>3-to people and the organisation</td><td><strong>Risk 5 – Capacity and Institutional</strong><br>Constraints to capacity in the Line Ministries to implement reforms, as well as uneven and uncoordinated progress among the public governance reforms.</td><td>M</td><td>M</td><td>Combining technical support with capacity building and soft skills trainings; Implementation of a comprehensive Reform Capacity Development Plan;</td></tr><tr><td>3-to people and the organisation</td><td><strong>Risk 6 – Uneven support to reforms</strong>, with FMIS implementation will absorb most of MEF and line ministries resources</td><td>M</td><td>M</td><td>Sustain the oversight committee and carefully monitor developments and results.</td></tr><tr><td>4-to legality and regularity aspects</td><td><strong>Risk 7 – Public Procurement</strong><br>Weak procurement practices leading to leakages</td><td>H</td><td>H</td><td>Improvement of the public procurement legal framework and enforcement mechanisms, and transparency</td></tr></table>"}, {"bbox": [80, 576, 239, 600], "category": "Section-header", "text": "Lessons Learnt:"}, {"bbox": [80, 627, 1147, 708], "category": "Text", "text": "The most important lessons based on the implementation of the previous programme is that there is very important level of political commitment to reform PFM systems. However, this has, on some occasions, led to overly ambitious plans compared to internal capacities or funding availability."}, {"bbox": [80, 719, 1147, 853], "category": "Text", "text": "The previous Sector Reform Contract to support PFM reform in Cambodia (ACA/2015/037-958; ACA/2018/040-874) showed a very good level of success, with EUR 12.5 million been disbursed in two tranches in 2020 and 2021. While in 2020 the disbursement of 100% was linked to the support provided in the context of the COVID-19 crisis, the success in the disbursement of 2021 showed that 5.66 out of the 8 target indicators were assessed as met and gave rise to the corresponding payment."}, {"bbox": [80, 864, 1147, 995], "category": "Text", "text": "Useful lessons have been learnt from the previous PFM programmes implemented between 2016 and 2021 (ACA/2015/037-958; ACA/2018/040-874), from various external assessments including the PEFA finalized in June 2021, and regular IMF Technical missions. The Ministry of Finance is flexible in the way it implement its PFM reform. It takes into account recommendations and does not hesitate to seek for internal or external assistance to confront them."}, {"bbox": [80, 1009, 1147, 1117], "category": "Text", "text": "In particular, the Budget System Reform Strategy endorses a shift from the originally planned “performance-based budgeting” to the more realistic “performance-informed budgeting”¹². The new budget system aims to move from an input-based system towards a result-based system. In this regard, EU has provided technical assistance (TA) to MEF to develop a procurement reform strategy to run in parallel to the BSRS."}, {"bbox": [80, 1142, 1147, 1303], "category": "Text", "text": "Year after year the quality of reporting and reporting mechanism is improving. However, there remains a need for better availability of budgetary and expenditure analysis, for an improved timely decision making process. Development Partners have therefore agreed to provide further support with a trust fund providing specific advisory services, analytical report (Tax system reform, update of the PFM strategic framework (CAP4), strengthening of Public Investment Management reforms, change management, Public Expenditure Review, Business continuity planning as well as capacity building and innovation)."}, {"bbox": [80, 1328, 1147, 1386], "category": "Text", "text": "The implementation of previous programme, in particular with respect to the monitoring of reforms has provided valuable lessons in particular:"}, {"bbox": [80, 1401, 1147, 1456], "category": "List-item", "text": "1) Technical and strategic policy dialogue based on a regular monitoring of the on-going reforms is a real added value of the budget support modality;"}, {"bbox": [80, 1467, 941, 1494], "category": "List-item", "text": "2) Reporting periods and disbursements need to be aligned with the PFM cycle reporting year;"}, {"bbox": [80, 1506, 1147, 1560], "category": "List-item", "text": "3) Technical assistance to support the achievement of jointly-agreed reform objectives should be provided throughout the implementation period;"}, {"bbox": [71, 1618, 1155, 1663], "category": "Footnote", "text": "¹²With performance-informed budgeting, resources are not directly related to performance, as was envisaged in the previous budget reform strategy, but performance information is used in the budget allocation process."}, {"bbox": [1040, 1663, 1155, 1686], "category": "Page-footer", "text": "Page 18 of 31"}]