Economic Policy and Public Finance Management Credit

closed

The Economic policy and Public Finance Management Credit Project contributes to implementing the first, second and fourth pillars of Mali's Poverty Reduction Strategy Framework (PRSF). Specifically, the project aims to: (1) promote growth and poverty reduction through (a) strengthening macroeconomic and fiscal management and (b) implementing key actions underpinning Mali's long-term growth and competitiveness; and, (2) improve efficiency, accountability and transparency in public finance management through strengthening (a) public expenditure management at central and decentralized levels and (b) the public procurement system. Macroeconomic management would be strengthened through prudent expenditure management; and greater linkage between the macroeconomic framework, the budget and the implementation of the PRSF. The growth support agenda would be strengthened through continued implementation of financial sector development actions to strengthen the health of the sector and enhance access to finance particularly longer term funds; implementation of key transport sector actions to improve quality and lower cost of transportation services; and implementation of trade facilitation measures to reduce processing/transactions costs of trade. Public expenditure management (PEM), drawing from the Government's Consolidated Action Plan for the Modernization and Improvement of Public finance management, would be strengthened through continuing the automation of information flows between key MEF de-concentrated departments (notably, treasury, budget and financial control) to increase information quality and transparency, improving the quality of published material on the financial and expenditure situation of the Government to increase transparency; and continued improvements in PEM processes, particularly internal and external budget control mechanisms. Public procurement would be strengthened through adoption of a coherent action plan and commencing its implementation, comprising updating of the legislative/regulatory framework, strengthening the linkages between public procurement and public finance management processes, and strengthening the private sector's access to public procurement opportunities.