1. Towards Greater Policy Coherence: Lessons from Mauritius Mr S. Puran Analyst Ministry of Finance Mauritius 27 OCT 2008

2. BACKGROUND: SETTING THE STAGE Economic downturn Declining trend in growth Job creation slowing… & unemployment increasing

3. BACKGROUND: SETTING THE STAGE Economic Reform Programme Fiscal Consolidation and Improved Public Sector Efficiency Improving the Investment Climate Improving trade competitiveness Democratizing the Economy through participation, social inclusion and sustainability

4. BACKGROUND: SETTING THE STAGE Supply-driven topic selection Lack of ownership and involvement of executive agency Poor consultant performance Ineffective dissemination and use of consultancy outputs Constraints to Development Partners financial and technical assistance

5. BUDGET REFORM Administration and Legislation Fiscal rules Mauritius Revenue Authority Public Procurement Act Finance & Audit Act and Public Debt Management Act Programme Based Budgeting link Outputs with Inputs in line with Specific Objectives

6. PBB in Mauritius Programme-Based Budgeting (PBB) seeks to improve expenditure efficiency and effectiveness by systematically linking funding to results, making use of performance information to achieve that linkage. A fully-fledged PBB (budget year 2008-09) embedded in a three year MTEF (2008-09 / 2010-11) is currently being implemented. This forms the basis for appropriation by the National Assembly and replaces the traditional line-item budget.

7. 77

9. PBB Objectives

10. Coordination of Budget Monitoring The Treasury uses a computerised accounting system, known as the Treasury Accounting System (TAS), for the processing and recording under “ORACLE Financials” of the financial transactions of Government and for the preparation of monthly, quarterly and annual financial statements and other financial reports. The Budget Strategy and Management Directorate (MoFED/BSMD) coordinates the development and the maintenance under “ORACLE Balanced ScoreCard (BSC)” of the Budget database relating to non-financial performance data which is operated by Ministries / Departments to report on their budget activities. BSMD also supervises the preparation of the Quarterly Monitoring Report of the Public Sector Investment Programme (PSIP). The Public Expenditure Management Systems Review Directorate (MoFED/PEMSR) supervises monthly budget monitoring reviews on performance data and coordinates the preparation of half-yearly performance monitoring reports (Interim Performance Report -IPR prepared in December- and Annual Performance Report -APR prepared in July- respectively).

11. MAKING PARIS DECLARATION WORK Ownership and articulation of priorities Formulation of Ministry Strategic Plan Reorganisation of Ministry administrative structure Need for Cooperating Partner input to address: Mindset focussed on inputs & activities Shortage of planning time and capacity Quality of services Better coordination between partners and planning of missions

12. MAKING PARIS DECLARATION WORK Alignment of Cooperating Partner flows Financing v/s technical input & capacity building Alignment of technical inputs to develop PBB and integrate Global Public Goods & Global Facilities PBB – coordinated & harmonised way to mobilise resources and achieve desired outcomes

13. MAKING PARIS DECLARATION WORK Harmonisation among Cooperating Partners Capacity Building Planning Unit in MOFED (UNDP assistance) External assistance integrated in local structures Changes in Cooperating Partners approach and also in administrative and hiring practice to integrate contractual workers

14. MAKING PARIS DECLARATION WORK Managing for Results PBB complemented by Performance Management System Investment by Cooperating Partners in capacity building in PBB and PMS Establish database of reliable consultants M&E mechanism to assess consultants Regional Multidisciplinary Centre of Excellence – useful tool

15. MAKING PARIS DECLARATION WORK Mutual Accountability Annual Business Plan consultations TA & capacity building support v/s progress Financial assistance v/s progress Service to Mauritius Programme Capacity Building Programme

16. Thank You