The government yesterday launched its fourth phase Public Financial Management Reform Programme designed to attain more effective and efficient public financial management to contribute to broad based economic growth and poverty reduction.
Speaking at the launching of the programme, Prime Minister Mizengo Pinda said that PFMRP IV, set out for financial years 2012/2013 to 2016/2017, was another opportunity for addressing challenges encountered in ensuring sound public financial management.
Despite achievements attained in the sector there were challenges in resource mobilisation, revenue and expenditure management as well as the harmonisation of planning, budgeting and reporting systems, he said.
The Premier said that through PFMFP IV Strategy the government will improve information sharing by using various communication media.
“Towards this, the government has started to publish simplified versions of the government budget known as The Citizen Budget. The provision of public financial management information on time and accurately will increase accountability and transparency in the use of public resources.”
Pinda added: “In line with best practices of planning and budgeting, the government has set a plan to move from activity based to program based planning. This will improve budget planning, monitoring, reporting and accountability and ensure that financial resources are allocated on the basis of outcomes achieved, by matching programme cost with results.
The government embarked on improving domestic revenue collection systems through modernization, harmonisation, collaboration and widening of the tax base. This resulted in an increase of government finance collections from 14.1 percent in 2006 to 15.9 percent of the Gross Domestic Product in 2010/2011. He however called upon stakeholders in the course of implementing the PFMRP to continue supporting the government in the endeavour.
EU Ambassador Filberto Ceriani Sebregondi, chairman of the Public Finance Management Group of the development partners, said capacity building remains a major issue to be addressed for the successful implementation of the PFMRP IV.
Implementation of the programme will help to improve financial accountability, thus helping to sort out problems raised by the latest report of the outlined in the Controller and Auditor General.
Finance Minister William Mgimwa highlighted notable achievements in the third phase implementation of the program, including strengthening auditing through enactment of the Public Audit Act 2008 which enhanced the powers of the National Audit Office.
The capacity of the National Audit Office was strengthened through training, provision of working tools and construction of regional offices.