FINANCIAL FRAMEWORK

In accordance with GSP/Taqadum’s Local Financial Management Module of the framework, which was presented and approved at the project’s February 2015 National Local Finance Management workshop held for provincial officials and representatives from the ministries of Health and Education, Ministry of Municipalities and Public Works, Ministry of State for Governorates’ Affairs (MOSGA), and Council of Ministers’ Secretariat (COMSEC), project Finance specialists have been working with the 15 provinces to implement the Module in stages. (Note: Due to the Ministry of Finance’s (MOF’s) initial resistance to the financial module, the Module did not receive the MOF’s support until August 2015.)

GSP/Taqadum’s budgeting team has been focused on three major areas, with progress differing in each area according to each provincial government’s capacities and resources:

These three areas are interrelated and combined together to represent a practical and functional Decentralized Financial Management Framework. Creating a Local Revenue System is critical to financing local services, fostering local government accountability, and improving service delivery. Development of a clear and reliable budgeting process will combine these revenues with provincial resources transferred from or allocated by the Federal government. Taken together, these two functions should be managed by a provincial financial authority (Provincial Finance Management System) that will control resources, conduct financial planning, and oversee spending of budget allocations in accordance with finance policies and regulations.