1. Aid Transparency and Fiscal Transparency - Rwanda Experience - Marie-Ange INGABIRE External Finance Unit Ministry of Finance and Economic Planning IATI Partner Country Meeting 23 April, 2012, Paris Aid Transparency and Fiscal Transparency - Rwanda Experience - Marie-Ange INGABIRE External Finance Unit Ministry of Finance and Economic Planning IATI Partner Country Meeting 23 April, 2012, Paris

2. Outline ► Aid Context in Rwanda ► Aid Transparency and Fiscal Transparency in Rwanda ► Achievements and Challenges ► Current Efforts and Future Work 1

3. Aid Context in Rwanda  ODA continues to play an important role in national efforts for development and poverty reduction.  Significant increase in aid volume since early 2000 – approx. US$ 980 million in FY 2010/11.  40-50% of national budget externally funded. In some sectors, approx 75% of sector spending externally funded.  Aid Portfolio evolved considerably:  Budget Support (GBS and SBS) - between 29%-38% of total ODA  Increasing use of country systems (50% of total ODA in 2010, up from 42% in 2007) 2

4. Aid Transparency and Fiscal Transparency  Aid Transparency critical for fiscal transparency and for development effectiveness in Rwanda  Aid on Budget in Rwanda – Aid executed by GoR to be on budget, approved by Parliament. Other information included as Annex for information sharing (not through PFM system).  Large volume of aid continues to be provided outside of GoR execution (34%) 3 Aid Transparency Fiscal Transparency Optimizing resource allocation Enhancing accountability (domestic and mutual) Development Effectiveness

5. Achivements  Development Assistance Database (DAD) since 2004 – a depository of aid information  Donor Performance Assessment Framework (DPAF) – improving comprehensiveness of aid information and transparency  Public Finance Management (PFM) reforms – bearing fruits  PEFA outcomes – PEFA 2010 shows a solid and progressive improvement from PEFA 2007  Comprehensiveness of information included in budget documentation scored as A (PEFA 2010). Since 2007 -consistently using a comprehensive budget documentation process.  Aid on Budget (PD Indicator 3) – 71% in 2010 from 51% in 2007 4

6. Challenges  Considerable volume of aid provided outside of GoR execution (34% of ODA – rated D by PEFA 2010);  While predictability of budget support is good, financial information provided by donors for budgeting and reporting on project and programme aid weak (rated D+ by PEFA 2010);  Medium-term predictability/transparency needs further improvement. Little forward planning information that enables accurate and effective budgeting. 5

7. Challenges  Not timely and comprehensive information in line with the Government’s budget classification and Government fiscal cycle – information partially useful for budget planning and in context of Medium-Term Expenditure Framework (MTEF)  Aid Information in Development Assistance Database (DAD) not feeding effectively for budget preparation, execution, and monitoring.  Significant lack of data on ODA flows not being channelled through government, including data from NGOs.  Not all DPs report through DAD (i.e. emerging donors) 6

8. On-going Efforts and Future Work 7  Increasing use of country systems in line with the Busan commitments.  Continue PFM reform (rolling out of Smart FMIS – facilitating GoR agencies ensuring comprehensive budget information and effective execution reporting)  Integration of DAD with Smart FMIS (expected to be completed before June 2012)  DAD integrating GoR’s Chart of Accounts;  DAD planning/commitment information feeding into budget module;  DAD disbursement information feeding into revenue module;  DAD direct payment information feeding into expenditure module;  NGO execution module currently in plan for DAD 7

9. 8 Thank you