[{"bbox": [84, 150, 1144, 338], "category": "Text", "text": "selected institutions, developing procedures and methodology for GRB; capacity building; and stakeholders coordination and visibility. Our previous Project has been supporting all five pillars. The ongoing EU trust fund World Bank (WB) project in this field will be supported by results achieved in designing the PBB system. The programme structure developed for each budgetary institution shall mirror the anticipated climate-responsive actions, needs of marginalised groups and gender equality. Such modifications in the budget process will be methodologically supported, especially by modification of the Budget Call Circular used by budgetary institutions in the process of budget formulation for the next year."}, {"bbox": [84, 353, 1144, 487], "category": "Text", "text": "Most activities related to the PBB will be impacted by the currently applied information systems, raising demand for the digitalisation of the final users. The current forms and templates requisite to prepare the budget by programmes in line with the PBB methodologies are a challenge for using digital tools in the budget preparation phase. In this regard, the budget classification (updated in 2015) and corresponding Chart of Accounts will be revised to enable budget formulation by programmes."}, {"bbox": [84, 552, 340, 583], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [84, 627, 1144, 734], "category": "Text", "text": "The action is to be implemented in support of Priority area 2: Democratic and economic development/Specific Objective 3: Strengthening domestic revenue mobilisation, public finance management, and fighting against corruption as outlined in the EU MIP for Mongolia (2021-2027). The following specific problems have been identified in this priority area as illustrated in the table below."}, {"bbox": [84, 759, 1141, 1644], "category": "Table", "text": "<table><thead><tr><td>Priority area</td><td>Specific problems</td></tr></thead><tbody><tr><td>Fiscal discipline and public finance management</td><td><ul><li>PFM systems remain weak in medium-term budgeting;</li><li>Fiscal policy is not supported adequately with fiscal risks analysis and fiscal risk management strategies;</li><li>Absence of medium-term sectoral strategies based on fully costed and targeted programs in piloting line ministries;</li><li>Medium Term Expenditure Framework (MTEF) was not implemented as a logical continuation of the MTFF already established;</li><li>Absence of programme's costing guidelines;</li><li>Currently running budget programmes cannot be fully examined in terms of performance and cost-effectiveness;</li><li>Budget classification needs to be updated/upgraded by programme codes;</li><li>Budget process - adequate information on GRB, environmental and climate actions, and expenditures of marginalised groups are not included in the prevailing Budget Call Circular.</li></ul></td></tr><tr><td>Domestic revenue mobilisation</td><td><ul><li>Narrow fiscal space for financing sustainable development and climate action, whether adaptation or mitigation, at the national and local levels;</li><li>Revenue forecasting inaccurately projects the composition of receipts.</li></ul></td></tr><tr><td>Public Investment Management (from a result-based budgeting perspective)</td><td><ul><li>Public investment and procurement are not included in the PBB guidelines currently in use;</li><li>The investment/capital expenditures should be integrated within the MTEF.</li></ul></td></tr><tr><td>Gender Responsive Budgeting</td><td><ul><li>GRB is not incorporated into the budget process. The budget circular should provide more detailed information for public organisations in the budget preparation phase;</li><li>The budget planning should include gender-responsive objectives and Key Performance Indicators (KPIs) for all gender-responsive policies. No procedures are yet available;</li><li>There are no electronic templates (forms) for completing gender-responsive expenditures. This is to be reflected in budget classification and the chart of accounts in the form of appropriate codes. The corresponding requirements for modification of the IT system are not explored;</li></ul></td></tr></tbody></table>"}, {"bbox": [1037, 1681, 1142, 1705], "category": "Page-footer", "text": "Page 6 of 27"}]