Capacity Building in Public Financial Management 2

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The objective of the Second Capacity Building in Public Financial Management Project for Kyrgyz Republic is to improve budget predictability, control and transparency in the Kyrgyz Republic. There are four components to the project, the first component being strengthening budget planning and execution. The component will fund technical assistance and capacity building of the MoF to: enhance the legislative framework for PFM; strengthen medium-term budgetary framework and revenue and expenditure forecasting; and implement program budgeting reforms, improvements in public investment management and budget transparency and institutionalize budget hearings. The second component is the building capacity of the Ministry of Finance in the public finance management. The component will finance technical assistance and capacity building related to: implementation of the PFM Development Strategy Action Plan, including change management and analytical capacity building; implementation of the budget information system; transparency of public debt management; design and implementation of internal control system, including development of a certification program of internal auditors; and further development of the government e-Procurement system. The third component is the strengthening of the intergovernmental fiscal relations and sub-national PFM. The component will fund technical assistance and capacity building related to: operationalization of the intergovernmental fiscal relations development concept, including analysis of expenditure assignments, equalization mechanisms, simplification of the equalization formulae and improvements in tax capacity assessments; and implementation of a methodology for monitoring and evaluation of PFM quality at the sub-national level, including conduct of two sub-national PEFA assessments (at the beginning and end of the Project), and one national PEFA at the end of the project (the latest national PEFA was conducted in 2014) to provide comprehensive overview of the PFM systems performance and assess progress under the PFM reforms and inform the PFM reform after the project completion. Finally, the fourth component is the project management.