ODI 2021-2025 Budget Strengthening Initiative

General

Since the political chaos that followed the coups in 2012 and 2020, Mali has done much to modernize its institutions so that they become more efficient, transparent and inclusive both in terms of governance and the community service they offer. As part of this work, Mali has implemented the second generation institutional development program (PDI 2017-2027) and the third generation reform in the management of public finances (PREM 20172021). The latter constitutes the strategic framework for the proposed BSI support. Through its advisory experience, BSI is a natural choice of partner to help the Malian government develop important government financial governance reforms that are necessary to strengthen its government institutions. Through ODI, Sida has supported an initial effort and a bridging effort to help Mali develop its budget processes in 2019-2020. The project has reviewed priorities in terms of reforms and the need for technical support to the Malian government through small-scale support in the areas of government finances and financial management. In collaboration with Mali, ODI has developed a four-year initiative in which support is proposed in the following areas: 1. Budget transparency 1.1 Budget analysis and tools for budget transparency 2. Implementation of program budgeting 2.1 Strengthened governance dialogue within two sector ministries 2.2. Thematic budget analysis and reporting, including gender budgeting 2.3 Implementation of the Budget Engagement Plan 3. Accounting reforms and support to the Treasury 3.1 Cash handling 3.2 Accrued accounting 4. Fiscal decentralization and financial governance at the local level 4.1 New financing regimes for CTs 5. Mobilization of revenue to the Treasury 5.1 International taxation 5.2 Analysis of tax effects As a cross-cutting theme for these five areas of support, the BSI program will support the Malian government's efforts to digitize and use information technology to modernize public administration. During the initial phases of the effort, BSI has focused on engaging key government institutions given their interest in cooperating and their demand for long-term support from BSI. These institutions are: Ministry of Economic Affairs and Finance (MEF-Ministère de l'Economie et des Finances) and the following institutions * Unit for Support for Government Financial Reforms (CARFIP-Cellule d'Appui à la Réforme des Finances Publiques) * Agency for Budget (DGB-Direction Générale du Budget) * The Tax Authority (DNTCP - National Directorate of Treasury and Public Accounting) * The Tax Agency (DGI- Direction Générale des Impôts) * Unit for support for decentralization (CADD / MEE - Cellule d'appui à la decentralization et à la déconcentration) Ministry of Energy and Water (MEE- Ministry of Energy and Water) and the following institutions * Directorate of Finance and Materiel (DFM - Direction des Finances et du Matériel) * Program managers (RPROG) and their respective support units * Decentralization Support Unit (CADD / MA) The Ministry of Agriculture and the following subordinate institutions * Directorate of Finance and Materiel (DFM - Direction des Finances et du Matériel) * Program managers (RPROG) and their respective support units * Decentralization Support Unit (CADD / MA) Ministry of Decentralization and Land Administration (MDAT- Ministry of Decentralization and Territorial Administration) * The Authority for Territorial Societies (DGCT - Direction Générale des collectivités territoriales) The embassy believes that a long-term approach in collaboration with the Ministry of Finance and the Ministry of Finance as well as selected institutions is appropriate.

Objectives

The overarching objective of the four-year project is to build capacities of the Malian government in strengthening budget comprehensiveness, establishing a credible state budget while striving for a fair, transparant and accountable distribution of public services to Malian citizens. 1.Support to budget transparency: Support area objective: The transparency of governmental action through the budget is strengthened allowing non-state actors to constructively engage with and hold the government accountable. 1.1 Workstream objective: The Direction Générale du Budget (DGB) is able to effectively communicate information on public finances to citizens increasing their awareness on budget and spending decisions. 2. Support to the implementation of programme budgeting: Support area objective: The efficiency of public spending in a resource-scarce environment is improved, optimising expenditure in line with national priorities. 2.1 Workstream objective: The two sector ministries (Ministère de l´Agriculture and Ministère de l´Energie et de l´Eau) apply a greater result and performance orientation in the implementation of their mandate achieving a more efficient and effective delivery of services to the population. 2.2 Workstream objective: The Government of Mali analyses the impact of its budget decisions on important cross-cutting issues, e.g. gender, enabling it to take appropriate policy measures to improve them. 2.3 Workstream objective: Government spending forecasts and comprehensiveness within and across service sectors is improved strengthening budget execution. 3.Support to treasury and accounting reforms: Support area objective: The Malian State has a more comprehensive and accurate view of its fiscal and financial position, strengthening good financial governance. 3.1 Workstream objective: The use of available resources is improved, and timely payments of public commitments are strengthened, safeguarding public investment budgets and reinforcing the efficiency of public spending in the budget execution process. 3.2 Workstream objective: The Direction Nationale du Trésor et de la Comptabilité Publique (DNTCP) produces new and improved financial statements, providing a better understanding of the financial position and improving forecasting capacity. 4. Support to fiscal decentralisation and local public financial management: Support area objective: The public financial management (PFM) capacities, competences and resources available to Collectivités territoriales (CTs) are reinforced strengthening their ability to deliver services. 4.1 Workstream objective: The capacity of Collectivités territoriales (CTs) to manage their public finances in an effective and accountable manner is strengthened. 5. Support to domestic revenue mobilisation: Support area objective: The Government of Malis domestic revenue mobilisation is strengthened, gradually raising its tax-to-GDP ratio. 5.1 Workstream objective: The ability of the Direction Générale des Impôts (DGI) to effectively tax and audit multinational companies is reinforced, increasing domestic revenue from this taxpayer segment. 5.2 Workstream objective: The capacity of the Malian Government to conduct tax impact analysis is strengthened, informing sustainable policies for mobilising domestic revenue. Support the digitalization of public financial management processes: Cross-cutting objective: Public financial management processes relating to the support areas are automated using appropriate information technologies, strengthening the efficiency and accountability of public service delivery.