[{"bbox": [96, 153, 1136, 270], "category": "Text", "text": "training with the school education. There continues to be a need to improve fiscal management, including a comprehensive medium-term debt and cash management, tighten fiscal policy and implement revenue reforms to strengthen fiscal framework as well as accelerate **Goods and Services Tax (GST)** implementation with social protection measures."}, {"bbox": [96, 297, 1136, 353], "category": "Text", "text": "In conclusion, the authorities are pursuing a stability-oriented macroeconomic policy and the eligibility criterion is met."}, {"bbox": [113, 368, 468, 397], "category": "Section-header", "text": "### 2.3.4 Public Financial Management"}, {"bbox": [96, 411, 1136, 818], "category": "Text", "text": "The **PFM reform strategy** remains sufficiently relevant and credible, with satisfactory progress. Good Governance is one of the four pillars of the Gross National Happiness (GNH) Index. Improving governance and accountability is one of the main agendas of the Royal Government of Bhutan (RGoB) and Strengthening Public Financial Management (PFM) is a key element of good governance. The PFM reform programme in Bhutan is based on the 2010 **Public Expenditure and Financial Accountability (PEFA)** and updated following the publication of the 2016 PEFA assessment. The 2016 PEFA assessments confirmed that Bhutan has good fiscal discipline through comprehensive coverage of budget execution, good control of expenditure commitments and oversight aggregate fiscal risk and the quality and timeliness of budget reports. The PFM Reform Strategy and Action Plan (2017-2021) continues to be the roadmap to consolidate recent PFM reforms, close gaps, improve transparency and accountability, build domestic revenue, and integrate or interface several stand-alone computerized information systems. A new PEFA assessment is planned to be concluded by 2022. This PEFA will also include modules of climate change and gender assessments. Its results will inform the PFM Reform Strategy and Action Plan for the next period."}, {"bbox": [96, 845, 1136, 1393], "category": "Text", "text": "As such, Bhutan continues to show strong commitment to implementation of **reforms for strengthening PFM** in a **wide range of areas** including planning, budgeting, revenue administration, asset and liability management, procurement, budget documentation, public access to information, internal control, audit and legislative scrutiny. Through support of the EU-ADA Multi donor fund for PFM implemented by the World Bank, there has been progress in the implementation of the Goods and Services Tax (GST); cash-basis International Public Sector Accounting Standards (IPSAS) and moving towards an Integrated Financial Management Information System (IFMIS). The GST legislation was passed by the Parliament in January 2020 and received the Royal Assent in April 2020. However, there has been a setback on the start date of GST implementation that has been postponed further by two years. The Goods and Services Tax (Amendment) Bill of Bhutan 2022 was tabled in the National Assembly to defer the implementation date from 1st July 2022 to July 2024, on account of the unfavourable economic situation of the country and the operational readiness of IT system (Bhutan Integrated Taxation System).\" . The final review of draft GST rules and regulations and designing of GST Forms and Notices, procurement process for the procurement of outreach & communication materials, refurbishment of GST Training Centre have been completed. The drafting of GST training materials and FAQ on GST and development of strategy for ending of Sales Tax & smooth transition to GST are ongoing. South Asia Regional Technical and Training Centre (SARTTAC) provided TA through support for a new integrated tax system, which will eventually provide integrated online services for all Department of Revenue and Customs' administered taxes and duties."}, {"bbox": [96, 1422, 1136, 1627], "category": "Text", "text": "The **electronic Government Procurement (eGP)** system is being implemented in three phases, with the phase II now completed. Another reform implemented is the electronic Public Expenditure Management System (e-PEMS), which is an online accounting and payment system to promote cashless and digital payments. With this system, all government payments are now processed electronically on a real-time basis. In 2020-21, the major reforms undertaken amongst others included: IFMIS- Integrated Financial management Information System: integration between e-PEMS and ZESt-MoF implemented the new Government Payroll System (GPS) as a separate system within the electronic Public Expenditure"}, {"bbox": [1027, 1680, 1145, 1706], "category": "Page-footer", "text": "Page 14 of 39"}]