[{"bbox": [94, 124, 1135, 179], "category": "List-item", "text": "* While system improvement and ICT can be both a facilitator and a driver of change, it is not a substitute for the development of sound institutional, organisational and operational systems."}, {"bbox": [94, 179, 1135, 234], "category": "List-item", "text": "* Actions, designed to support broad reforms, must be flexible in their structure and implementation modality to adapt to an evolving context and therefore remain relevant and impactful."}, {"bbox": [85, 287, 401, 319], "category": "Section-header", "text": "## 3.5 The Intervention Logic"}, {"bbox": [95, 334, 1136, 522], "category": "Text", "text": "The underlying intervention logic for the action is that strengthening the GRZ's ability to more accurately and more consistently meet its expenditure and revenue targets, will have a positive effect on public service delivery. A better alignment between strategic plans, resources allocation and expenditure will improve budget credibility and gender sensitivity. One component of the action will support the MoFNP to moderate and implement a comprehensive and inclusive PFM reform strategy. This component of the action will also contribute to improving the PFM system in Zambia to deliver on its three core objectives of fiscal discipline, allocative efficiency and operational efficiency."}, {"bbox": [95, 531, 1136, 720], "category": "Text", "text": "Building on previous progresses with the rolling-out of Output Based Budgeting (OBB), the action will strengthen the integration between the policy and budget cycles. The re-engineering of the budget process will aim at enhancing its political steering with appropriate and timely strategic, political engagement. The budget calendar will provide more space for MPSAs budgeting. The implementation of OBB will be strengthened through improved costing of public policies and more gender responsive plans and budgets. Realistic budgets are a necessary condition for a solid budget execution, enabling MPSAs to implement their work plan in line with agreed objectives and targets, and their subsequent budget allocations."}, {"bbox": [95, 730, 1136, 1422], "category": "Text", "text": "The action will support the government to expand and strengthen cash management and commitment control. A functional Treasury Single Account (TSA) is critical to credible cash flow forecasting. The action will support the government to consolidate the Treasury Single Account's (TSA) coverage and limit the proliferation of special purpose accounts. The action will address constraints in some key budget execution processes, such as payroll management and public procurement. In close cooperation with other donors, the Action will support the development and the implementation of a comprehensive IT strategy for PFM, which will aim at improving system integration and interfacing, updating and expanding systems functionalities, improve coherence of IT solutions in PFM and strengthen data governance. A more integrated IT architecture will improve the exchange of data and information. Access to accurate, timely and comprehensive data on commitments, expenditures, and revenue flows, will improve data analysis and forecasting including for macro-economic modelling, revenue forecasting, expenditure profiling, commitment ceilings and cash flow forecasts. Better cash management and commitment control will ensure that MPSAs have timely information on their commitment and expenditure ceiling, as well as timely cash disbursements, and can therefore better plan, prioritize and commit expenditure to implement their work plan, fulfil their objectives, while limiting use of alternative sources of finances, such as supplier credits, which contribute to generating arrears. Reducing the stock and limiting the accumulation of domestic arrears, will alleviate pressure on the private sector and its development. A more realistic assessment of the fiscal space and the resources available at each stage of the budget cycle, will contribute to evidence-based decision making and support the implementation of the government priorities, particularly on social service delivery, and limit discretionary spending on unplanned or non-prioritized transactions. In this context, the impact of fiscal decentralisation (to spending units) for improved service delivery also needs to be considered and the government's reform efforts in this area will be supported. The government's ambitious fiscal decentralisation plans provide opportunities to improve spending efficiencies and effectiveness, but also present some fiduciary risks. While other CP funded programmes cover PFM support spending units (including local authorities at district level), this action will support MoFNP to improve the decentralised fiscal architecture, especially allocation and control mechanisms. In particular, the action will build synergies with World Bank interventions related to fiscal decentralisation, and support progresses with central systems and processes."}, {"bbox": [95, 1431, 1136, 1593], "category": "Text", "text": "The action helps the GRZ to strengthen the network of financial oversight institutions, clarify institutional arrangements, roles and responsibilities. The action will also strengthen the capacity of the internal control and audit framework, and develop the integration of OBB. The action will support a shift from ex-ante internal control to ex-post external control, to allow managers more discretion to manage for results. To improve accountability, follow-up on audit findings will be improved, while capacity to go beyond financial transaction compliance will be expanded to performance audits."}, {"bbox": [1027, 1680, 1143, 1706], "category": "Page-footer", "text": "Page 16 of 31"}]