Peru has been in the process of strengthening its public financial management (PFM) system for over a decade. In addition to sustained levels of economic growth and fiscal stability, the country boasts significant improvements with regard to budget openness , fiscal transparency, high level PFM practices, results based budgeting and policy oriented public spending. However, all these PFM outcomes require further efforts to consolidate. It will be necessary, given Peru aspiration to become a full OECD member, to align the country's PFM practices on international standards, which require further efforts and reforms.

The general objective of the programme is to further strengthen and consolidate PFM reforms in Peru, with a stronger and clearer emphasis put on improved coordination, cohesion, integration and sequencing of initiatives between MEF and the rest of the relevant PFM institutions, including subnational governments.

The general expected outcome is a stronger and more integrated PFM system along the whole of the budget cycle and between the different tiers of government that conforms more fully to international standards and, thus, supports Peru on its path towards achieving OECD standards.

Risultati principali attesi:  

An agenda of priority areas for PFM reforms has been formally agreed by the MEF and the other relevant PFM institutions-

A list of projects that allow a strengthening of results-based budgeting, public asset and liability management, internal and external audit and tax compliance has been implemented-

A mechanism to allow other donor agencies to earmark their contributions to the list of projects that have been defined is in place-

Other PFM institutions, in addition to MEF, are represented in the governance structure of the programme-

Projects financed by the programme support initiatives where more than one PFM institution is involved-

Regular meetings between PFM institutions to monitor reform progress, project implementation and lessons learned have taken place-

A formal mechanism for identifying PFM reform policy priorities that includes most PFM institutions along the budget cycle has been established.

Risultati fasi precedenti:  

The previous phase has successfully achieved the general and specific programme objectives. The analysis of the log-frame results shows that the programme provided important backing to improve PFM performance in Peru and that about 70% of the objectives have been achieved. This result is confirmed by the recent Fiscal Transparency Evaluation (FTE) conducted by the IMF, which shows that Peru achieved significant progress since 2009. The programme’s contribution has been especially important at the micro level. Funding for TA was provided to all PFM relevant institutions (Ministry of Finance, Procurement Authority, Office of the Comptroller General, Planning Directorate, Civil Service Authority) to design, develop and implement 95 reform projects that have been instrumental for achieving significant progress in the last few years.

Fase 2 01.09.2016 - 21.12.2023   (Active)