Resource information
This Integrated Fiduciary Assessment is
the first of its kind for Sao Tome and Principe. It combines
the analysis and policy recommendations from a public
expenditure review (PER), a country financial accountability
assessment (CFAA), and a country procurement assessment
review (CPAR). The goal of the report is to identify the
major challenges facing the country in the prepetroleum era
(the next three to five years) in public finance management
(including public enterprises) as it attempts to implement
its National Poverty Reduction Strategy (NPRS) with a tight
resource envelope. This executive summary presents recent
economic developments and fiscal sustainability analysis
that takes into account petroleum and no-petroleum
scenarios, with corresponding analysis on which of the
Millennium Development Goals (MDGs) are reachable. The
summary reports on revenue and expenditure performance since
2000-01, issues related to the implementation of the public
investment program (PIP) and its coordination with the NPRS,
and the budget process, including findings from the Health
PER, which highlights a lack of allocative efficiency. The
summary reports on the financial fragility of state-owned
enterprises (SOEs) and the possible fiscal consequences for
the central budget, especially regarding the implicit
subsidies and tax breaks to (and the hypothetical tariff
increases of) the electricity and water company. The summary
of reports on the status of the public finance management
system (budget preparation, execution, control, governance,
and human resources) and the reform process that may address
many of the concerns it rises. Finally, the summary presents
the findings related to the procurement process, including
the legislative and regulatory framework, institutional
framework and management capacity, procurement operations
and market practices, and integrity and transparency of the system.
