Advisory Services to the Ministry of Economy and Finance

Project description

Title: Advisory services to the Burkina Faso Ministry of Economy and Finance
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Burkina Faso
Lead executing agency: Ministère de l’Economie et des Finances (MEF)
Overall term: 2012 to 2015

Context

Burkina Faso's strategy for growth and sustainable development includes the goals of annual economic growth of ten per cent and a reduction in the share of the population living in poverty to 35 per cent from its current level of more than 40 per cent. The government intends to meet these goals by stimulating investments in agriculture, mining and infrastructure up to 2015 and promoting these sectors in particular.

Until now, however, this strategy has been insufficiently integrated into national budget planning, and the hoped-for results have failed to materialise. Burkina Faso has therefore undertaken to make fundamental reforms to its budget process in connection with its membership of the West African Economic and Monetary Union. Starting in 2017, the national budget will no longer be structured around budget items such as investments and personnel but according to policy programmes, with a view to achieving a results-oriented, transparent public budget.

Objective

The actions of the state in the field of public finances on both the revenue and expenditure side are transparent, legitimate and geared towards development.

Approach

GIZ experts are cooperating closely with the International Monetary Fund (IMF) to advise the Ministry of Economy and Finance on introducing and steering programme budgets in line with the principles of good financial governance. Training courses are being held to teach the staff in 41 ministries and institutions in Burkina Faso to set up programme budgets. The programme is assisting the Government of Burkina Faso in introducing cost effectiveness audits to gear internal and external financial control towards results.

The partners are introducing training and continuing education modules at the National School of Revenue Collecting Agencies on results-oriented budgeting, macroeconomic analysis and forecasting and on gender-responsive budgeting.

In addition, GIZ is advising national civil society umbrella organisations devoted to improving transparency, accountability and orientation to results in the use of public funds.

Results

All 41 ministries and institutions in Burkina Faso now implement their financial planning through programme budgets. This marks a key step forward in preparation for changing over the budget process in 2017.

Two training modules on setting up results-oriented budgeting and macroeconomic analysis and forecasting have been integrated into the curriculum of the National School of Revenue Collecting Agencies. From 2015 onwards, 200 junior experts from the Ministry of Economy and Finance will be trained in managing for results.

An analysis of the implementation of the national development strategy and public finance has been undertaken in cooperation with two civil society networks. Civil society groups can now put across their interests in shaping national policy more effectively in dialogue with the Government. The Government regularly publishes citizen-focused reports on the development results of its policies.