Treasury Performance Measuring and Monitoring in Kyrgyz Republic
Treasury Performance Measuring and Monitoring in Kyrgyz Republic 1
Legislation regulating the Treasury’s activity � Budget Code of Kyrgyz Republic. � PFM Development Strategy for 2017 -2019, approved by Go. KR Resolution No. 696, dated 22. 12. 2016. � Instruction “On procedures of an authorized public body forecasting and executing the budget, accounting and reporting” (Go. KR Resolution No. 488, dated August 16, 2017). � Guidelines on organizing accounting in budget institutions (Go. KR Resolution No. 224, dated May 16, 2011) as amended by the Order No. 97 -P, dated June 29, 2017, of the Ministry of Finance of Kyrgyz Republic “On Approval of Guidelines on Accounting and Financial Reporting”. � Order of the Ministry of Finance of Kyrgyz Republic “On drafting a Report on the Kyrgyz Republic Budget Execution Results for a Relevant Reporting Period”. � Budget Classification, based on the PFS 2001 � Law No. 72 “On Public Procurement”, dated 03. 04. 2015 г. 2
Treasury Mid-term Action Plan to Implement the PFM Development Strategy Areas Actions Finalize implementation of the Treasury Single Account (IV quarter. 2019) - Development of new more advanced PFMIS software; - Establishing and usage of TSA ensures timely accounting of and control over public finances and a full transparency of budget procedures; - Minimize number of bank accounts and cash transactions; Implementation of Liabilities Management (IV quarter 2019) - Analyze the liabilities management system and describe business processes; - Liability control methodology development and approval; - Establish overdue payments control and monitoring; - Analyze the impact of and assess currency exchange risks in the course of formulating and executing the budget; Transfer of the Social Fund’s Transactions to the Treasury System (IV quarter 2019) -Develop and approve the legal basis for the transfer; - Establish accounts for the transactions of SF and its territorial branches; - Cash service for the accounts of extrabudgetary funds that are part of the Social Fund’s budget system; 3
Treasury Mid-term Action Plan to Implement the PFM Development Strategy Areas Actions ; Integration of external funding of public investments into the Treasury system (until 2020) Automation of the budget execution - Procedures for automation of the budget execution process while process within the framework of the implementing FMIS; FMIS (IV quarter 2019) - Analyze and describe cash management business processes; - Develop and approve legislation for cash management; - Develop short—term revenue and expenditure forecasts. Improving cash management (2018) 4
Share of expenditures distributed by key sections of the National Budget, 2014 -2016 Percentage in 2014. Percentage in 2015. Percentage in 2016. General purpose public services 12. 8 13. 7 13. 5 Defense, civil order and security 15. 5 15. 8 Economic issues 8. 7 10. 5 Environmental protection 0. 7 Housing and utilities 2. 4 2. 0 9. 9 0. 8 1. 3 Health care 11. 8 11. 2 11. 0 Recreation, culture and religion 2. 6 4. 0 Education 21. 8 24. 0 Social protection 23. 7 22. 1 19. 7 TOTAL 100 100 Section Name 5
National Budget Expenditure Arrears 2016 2015 2014 Expenditures 123, 395. 1 mln. Expenditures 109, 436. 8 mln. Expenditures 95, 424. 0 mln. Arrears 4, 369. 1 mln. 3. 5% Arrears 4, 255. 4 mln. 3. 8% Arrears 3, 936. 6 mln. 4. 1% 6
Budget Expenditure Arrears: reasons and self-assessment using PI components 22. 1 and 22. 2 Payroll, social and sovereign debt service payments are paid annually at 100 -% level. Therefore there are no expenditure arears in these areas. A large share of arrears falls on the payments for goods and services. Restricting cash limits, inappropriate control over liabilities by chief controllers of appropriations and supervising departments of the Mo. F increase the amount of expenditure arrears every year. - Component 22. 1 Expenditure Arrears assessment – В - Component 22. 2 Expenditure Arrears Monitoring assessment – В 7
Implementing measures to improve the PI-22 score 1 Adoption of the Budget Code in 2016 Defining expenditure arrears (30 days) Automation of budget execution accounting and reporting 2 Adoption of the Law “On Public Procurement” Creating a web-portal for Integration of the public procurement (2016) portal into the Treasury information system. (control over liabilities) 3 Transition to national budget execution cashbased planning Improving independence Control over of budget institutions in expenditure arrears current distribution of funds. 8
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