Over the past six years a SECO-funded technical assistance project has enabled the realization of a more transparent and strategic budget process in Nicaragua. The project (phase 1 and 2) supported the institutionalisation of a Medium Term Expenditure Framework (MTEF) across 58 national government institutions (line ministries and other public entities). The objective was to improve the efficiency and effectiveness of public expenditure through a comprehensive planning and budget formulation process thus allowing a better alignment of available resources with strategic priorities and the setting of realistic fiscal targets.

Based on the results of the previous phases, a new program has been established with a twofold purpose : i) further consolidating the results achieved in Nicaragua and ii) disseminating the experiences and lessons learned to the region. The national component aims to meet the demands of the Nicaraguan authorities by continuing to enhance the MTEF formulation while supporting the government in effectively implementing the monitoring and evaluation modules of the government budget system. The regional component aims to meet the needs of Central American countries so as to contribute to the dissemination, training, diagnosis and mapping out of the implementation of MTEF systems amongst its member states while learning and being inspired by the Nicaraguan good practices in the subject.

Quality of MTEF projections is further upgraded, with an authentic multiannual prioritisation for the 58 central governement institutions.

Institutionalised tools to monitor on physical performance and analysis of the efficiency and efficacy of public spending are established.

Main national expenditure programs are assessed.

An evaluation methodology is prepared and pilot institutional evaluations are conducted.

Mechanisms are established for disseminating the MTEF and promoting its use as a tool for analysis of public spending programmes.

Regional MTEF knowledge leadership networks are established in partnership with COSEFIN.

A peer-learning platform (web-based) is established to facilitate exchanges on MTEF issues.

MTEF diagnostics and work plans are established for interested and committed Central American countries.

Risultati principali attesi:  

1 annual train-the-trainer event (for the local consultant team).

3 training events per year for 24 central government institutions.

1 workshop per year for 34 central government institutions.

Ad-hoc TA for adapting, revising MHCP internal procedures/legislation.

Ad-hoc TA for establishing and revising quarterly reports on physical monitoring.

Ad-hoc TA for fine tunning inter-annual goals and projections.

Ad-hoc TA for establishing monitoring procedures and reporting requirements.

Workshops to sensitize civil society, Parliament and media on the use and benefits of the MTEF.

Creation of a web-based platform and a generic Handbook to enable the sharing of advanced skills and lessons.

Up to 6 regional seminars for senior management and technical staff of COSEFIN members.

At least 4 assessments on the MTEF and budget reform processes in COSEFIN member states.

At least 4 road-maps produced or updated by COSEFIN member states.

Creation of a COSEFIN Working Group on MTEF.

Risultati fasi precedenti:  

The project (phase 1 and 2) supported the institutionalisation of a MTEF across 58 national government institutions. Through a major legal and institutional reform, the modernization of budget management was placed on a sustained path. The external evaluation conducted in 2012 revealed that while the MTEF project performed successfully, further activities would be needed to embed the gains already attained and raise the quality of budget preparation to the highest international standards. The evaluation highlighted the leadership built under the MCHP by means of a dedicated technical directorate. The government institutions had taken full ownership of the MTEF and the quality of financial and national planning is on a firm upward path. Yet, the review cautioned that the design of physical plans and their linkage to financial plans still needed to be addressed in order to ensure the consolidation of the MTEF process.

Fase 3 01.02.2013 - 31.12.2016   (Active)