Public Expenditure Management Project

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The Public Expenditure Management Project aims at improving the effectiveness, efficiency, and transparency of the Chilean public administration, through the establishment of a modern, and integrated financial management and resource allocation system. Within tight fiscal constraints, project components will strengthen financial management, and accountability as follows. First, a unified information management system will be developed, integrating a modular design into a single system for the public sector, to validate operational transactions and data recording, through extensive, advanced data-communications, as institutionally required. Continuous system improvement will be established, such as security systems, i.e., procurement, public credit, fixed assets, and inventory management. Related sub-systems reform includes updating of the accrual based public accounting system, improved cash management policies, and procedures, and, procurement reforms. Second, a multi-annual financial planning component will strengthen capacity to focus on macroeconomic, fiscal, and public investment policies, including budgeting by results, with technical assistance for public program evaluation as key tasks. The third, and fourth components will finance the design of a human resources management information system, and, strengthen financial, and human resource management units respectively, while the fifth component will finance the costs of the project coordinating unit, i.e., activities, goods and services, operating costs, and equipment.