CSOs call for dialogue on public finance management

Apr 27, 2017

The Session focused on discussing ways in which emerging and developing economies can design and implement public finance management practices that deliver for citizens

Civil Society Organizations (CSOs) have called for structural dialogue with government on issues regarding Public Finance Management (PFM).

This was during a question and answer session hosted by the Civil Society Budget Advocacy Group (CSBAG) and OXFAM Uganda and OXFAM America during the 2017 International Monetary Fund-IMF/ World Bank Spring meetings in Washington USA, recently.

The session focused on discussing ways in which emerging and developing economies can design and implement public finance management practices that deliver for citizens.

The session was attended by Government of Uganda Officials including Keith Muhakanizi the Permanent Secretary to the Treasury, Resident Representatives for both IMF and the World Bank and Civil Society Organizations from Africa and beyond.

Equitable economic growth

The discussions also dwelt on domestic revenue mobilization as a tool for financing sustainable development, Pro-poor public expenditure and its profound impact on equitable economic growth and poverty reduction.

There was also special effort to answer questions on how donors should support countries to make the link between transparency and accountability in extractive industry revenue management.

In addition to enhancing the citizen's voice as a critical ingredient for quality public finance management practices. The aspect of effective management and administration of Domestic resource mobilization in financing development was stressed by the IMF in this session.


Victoria Perry, the Deputy Director of Financial Affairs at IFM who was one of the panelists at this session, put emphasis on the fact that whereas having a good taxation system is just as necessary, it is not a sufficient condition for eradicating poverty in emerging and developing countries, but rather focusing on the how the taxes are utilized is more critical.

"Citizens need to know how the taxes they pay contribute to improving citizens' welfare through efficient allocations, improved budget performance and efficiency," said Victoria Perry.

Highlighting Uganda's case on Pro-poor public expenditure and its profound impact on equitable economic growth and poverty reduction, Pius Bigirimana the Permanent Secretary of Ministry of Gender, Labour and Social Development emphasized the issue of social inclusion and how that principle has informed Uganda's public expenditure discipline.

He discussed Uganda's focus on financing programmes for youth through the Youth Livelihood Fund as well Women's Entrepreneurship Fund as some of the programmes that Government of Uganda is focusing on, which will be fundamental in reducing the inequality gap.

Transparency and Accountability

Other panelists included Ian Garry the Director Accountable Development Finance Oxfam America who discussed the linkages between extractive industry revenue transparency and public finance accountability. In his remarks, he stressed the importance of accountability and transparency in managing oil revenues.

He urged Governments to allow disclosure of payments by oil companies for increased transparency. Using the example of Ghana where now Government of Ghana openly discloses utilisation of revenue from oil and even went ahead to push for a percentage of that revenue to be dedicated to financing social services.

"We have seen the pressure of positive change and with this we call on IMF to leverage on countries to press for transparency" stated Ian Gary.

Julius Mukunda the Executive Director of the CSBAG, called for a more structured dialogue that promotes mutual accountability and ownership of budget outcomes and processes. He further called for more coordination between CSOs and the donor working group on public finance management and natural resources governance, to which IMF is a member.

Pointing to Uganda's success story, Keith Muhakanizi the Permanent Secretary/ Secretary to treasury highlighted how the relationship between government and CSOs has helped in shaping public finance management reforms that are currently happening in Uganda. He shared Uganda's experience in developing the Public Finance Management Act (PFMA).

He acknowledged the great contribution CSOs made to the Act, specifically on the clause of the Budgeting process and oil revenue management. To him, the CSOs played a key role regard to the passing of the law and the following up of its implementation.

Overall, the session brought to the fore issues on proposals for enhancing domestic revenue mobilisation efforts within developing and emerging economies, enhancing citizen's voice and participation and generally promoting good public finance management practices that will be fundamental in achieving the SDGs by 2030.

 

 

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