[{"bbox": [97, 153, 1133, 366], "category": "Text", "text": "on negotiations, and the IMF is planning to relook at this in September 2022. IMF visited Tajikistan in June 2022 to review the conditions, due to the global implication of Russia's war against Ukraine. Regional security and geopolitical tensions could jeopardise economic prospects. Authorities expressed strong interest for the IMF programme, with an agreement in place on negotiation. In May 2020, the IMF approved a Rapid Credit Facility disbursement to Tajikistan to address the COVID-19 Pandemic. In the third quarter of 2021 the IMF provided Tajikistan with debt relief. Negotiations with the IMF are ongoing in the framework of the Extended Credit Facility programme in line with the Anti-Crisis Action Plan. Tajikistan has requested to join IMF's Financial Stability Programme, for which a roadmap of action is being drafted."}, {"bbox": [97, 377, 1133, 429], "category": "Text", "text": "**In conclusion, the authorities are pursuing a stability-oriented macroeconomic policy and the eligibility criterion is met.**"}, {"bbox": [85, 456, 437, 483], "category": "Section-header", "text": "### 2.3.3 Public Financial Management"}, {"bbox": [97, 510, 1133, 698], "category": "Text", "text": "There are a several PFM diagnostics that inform PFM reform design and actions in Tajikistan. The most recent ones are Public Expenditure and Financial Accountability Assessment (PEFA, 2022) and the International Budget Partnership's Open Budget Survey (OBS 2021). The government is planning to issue the next phase of its PFM Reform Mid-Term Action Plan (MTAP) in consideration of those findings. Other diagnostic reports include: Debt Management Performance Assessment (DeMPA, 2016), the Tax Administration Diagnostic Assessment Tool (TADAT, 2020), and the IMF's Article IV macro-fiscal reports, including the Debt Sustainability Analysis. The World Bank's Public Expenditure Reviews (PER) is planned to be released by the end of 2022."}, {"bbox": [97, 708, 1133, 1108], "category": "Text", "text": "**The strengths and weaknesses of the existing PFM system in Tajikistan** are drawn from PEFA 2022 assessment along three PFM outcomes. (i) Regarding **fiscal discipline**, robust medium-term fiscal planning has significantly improved, but remains challenging in the presence of continued willingness of the government to borrow, fragility of Tajikistan's small economy to external disturbances and shocks, and economic uncertainty. (ii) Regarding **strategic allocation of resources**, although the government budget has grown considerably over the years, resources are traditionally scarce, and it is unclear if they are allocated and utilised efficiently and effectively. The principles of policy-based budgeting are not fully in place across the government sector. A performance culture needs to be built which will examine critically the use of manpower, and require public sector managers to be accountable for the results of the expenditures under their control. (iii) Regarding **efficient service delivery**, persistent in-year changes in the composition of expenditure and the absence of continuity and scrutiny in medium-term expenditure planning may be seen as evidence that the system is permeated with inefficiency. Some of the changes in recent years - improvements in the content and timeliness of expenditure reporting, improvements in the transparency of public procurement – should help to create conditions in which inefficiency can more effectively be challenged. Effective internal financial control arrangements need to be instituted throughout the government, and order needs to be brought to the management and control of the public sector payroll."}, {"bbox": [97, 1118, 1133, 1226], "category": "Text", "text": "**Domestic revenue mobilisation** is an important aspect of the PFM in Tajikistan. Since January 2022, the Government is implementing the new (amended) tax code and is currently updating the sub-laws¹². GoT has requested a support from the World Bank to conduct revenue impact analysis, along the lessons learnt to be taken from the first year (2022) of implementation of the tax code."}, {"bbox": [97, 1237, 1133, 1501], "category": "Text", "text": "In 2020, a TADAT was applied to undertake a comprehensive assessment of the domestic tax administration system in Tajikistan. The assessment has identified the following strengths. The taxpayer registration process and database meet the standards of international good practice and accuracy is ensured. The internal and third-party data collection and processing allows comprehensive statistical analysis. The Tax Committee (TC) provides adequate and current information to taxpayers to meet their obligations. All tax declarations and payments are made electronically and in a timely manner. The TC revenue accounting system is robust and interfaces with the MoF's financial management system. The internal and external audit functions are regular and well defined. The TC provides adequate support to the MoF in providing inputs to revenue forecasting, monitoring revenue collection, and tax expenditures. Taxpayer perception surveys are conducted regularly and follow up actions undertaken."}, {"bbox": [97, 1514, 1133, 1569], "category": "Text", "text": "Meanwhile, the TADAT has highlighted the following weaknesses: Effective management of tax compliance and institutional risks lack international good practice. No tax gap analysis is currently undertaken. The TC does not"}, {"bbox": [85, 1621, 884, 1644], "category": "Footnote", "text": "¹² The Tax Code of the Republic of Tajikistan (#902 dated September 17, 2012) was last amended in 2021."}, {"bbox": [1027, 1681, 1143, 1705], "category": "Page-footer", "text": "Page 11 of 36"}]