Malawi - The Governance and Poverty Reduction Support Grant II (GPRSG II)

The present intervention is relative to the Governance and Poverty Reduction Support Grant II (GPRSG II). It has been designed because Malawi's PFM process is weak and needs to be refocused, while the country's economy is taking a big step towards sustaining macroeconomic momentum. By improving financial governance through greater efficiency, transparency, and accountability in the use of public resources, the GPRSG II seeks to make the budgeting process more efficient and enable both more and better provision of social services, especially to the poor. The GPRSG II support achievement of more effective and accountable government which are established priorities of the Malawi Growth and Development Strategy (MGDS) and Public Financial and Economic Management Priority Action Plan (PFEM PAP). The principal specific expected results are: (i) more effective implementation of PFEM reform (as measured by attaining the activities scheduled in the PAP) by the PFEM Secretariat, leading to improved budget allocation, implementation and monitoring to prevent unbudgeted expenditures; (ii) improvement in the independence of the National Audit Office (NAO) and a reduction in the delay with which annual audit reports are tabled in Parliament, improving the checks and balances of the branches of government; and (iii) strengthening internal audit and public procurement procedures, notably as regards increases in staffing and internal oversight, allowing a more efficient use of resources and reducing opportunities for corruption.