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Central Government/Public SectorProject Information Institutional Strengthening of the Ministry of Finance and Economic Development $ 14.20 Lac $ 1.42 Mn
08-Mar-2017
PID : 5483 Not Classified-TUVALU
Description The proposed TA will directly respond to the government's strategic area of good governance identified in its national development strategy (Te Kakeega II) where it gives priority to the strengthening of public administration oversight, institutionalization of sound management and principles and practices in the public service and reduce subsidies to PE through improved management, operations and business planning . ADB's Country Partnership Strategy (CPS 2002-2012) also focus on these areas as poor expenditure allocation decisions have significant opportunity costs that impede development and growth in a micro-economy such as Tuvalu. For this reason, the CPS focuses on effective fiscal management, which can make the greatest contribution to meeting Government priorities.
Project Rationale and Linkage to Country/Regional Strategy

The PEFA assessment and the diagnostic analysis of MFED had identified weaknesses that need improvement if budget credibility and resource allocation issues are to be resolved. PFTAC will help with the PFM plan while AusAID has provided assistance to the Audit and Treasury department. Improvements made in the Auditor General's office and the Treasury Department cannot be sustained if broader problems identified within MFED are not resolved. The proposed TA will complement these ongoing reforms in the Audit and Treasury Department.

The proposed TA will build upon the success of TA 7161-TUV, which helped establish the PE Act and policies to improve the performance of PEs. The proposed TA will strengthen the capacity of stakeholders to implement the PE Act to better monitor the performance of the PEs.

Impact Improved public financial management (PFM) and public enterprises (PE) performance

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