GOVERNMENT has launched the Public and Financial Accountability (PEFA) Report and the Integrated Public Financial Management Reform Strategy (IPFM-RS).
The Assessments were meant to assess overall Public Finance Management performance, evaluate how climate considerations are integrated into public finance and also assess gender responsiveness in budgeting and expenditure.
An expenditure outturn is the actual amount of money spent by a government or organization during a financial year, compared against the originally approved budget.
Speaking at the launch of the Reports, Thursday, Finance and National Planning Minister Dr Situmbeko Musokotwane said the revelation by the Public Expenditure and Financial Accountability Report that Zambia had recorded improvements in aggregate expenditure outturn compared to approved budgets meant that the days of systemic supplementary budgets were left behind.
“As you know, under the leadership of his Excellency the President, Mr Hakainde Hichilema, the new dawn government has staked its credibility on a simple promise: to restore fiscal discipline, eradicate waste and ensure that every kwacha collected from the Zambian people delivers maximum value. We cannot achieve our goal without a Public Financial Management (PFM) system that is transparent, accountable and credible. That is why we commissioned the Public Expenditure and Financial Accountability (PEFA) Assessment. We needed a mirror and honest, evidence-based diagnosis of where we stand. My Ministry, with the invaluable support of the European Union and GIZ, conducted three rigorous assessments: The Main Public Expenditure and Financial Accountability (PEFA) Assessment: The Gender Responsive PEFA (GRPFM); and the Climate Responsive PEFA (CRPFM),” he said.
“Today, it is with great pleasure that I stand before you, to disseminate these Assessment Reports and, announce that corrective measures for the weaknesses revealed by the Assessments have been embedded into our integrated PFM reform strategy implementation plan. According to the Main PEFA Assessment Report, Zambia has recorded improvements in aggregate expenditure outturn compared to approved budgets. This means, the days of systemic supplementary budgets are behind us. Our Debt Restructuring efforts and the IMF-ECF Programme have instilled fiscal discipline. Parliament is now deeply involved in budget scrutiny, holding the executive to account and public access to budget documentation through the citizens budget is now standard practice. However, the report highlighted critical weaknesses in our revenue forecasting and expenditure composition. Simply put, we are not very good at predicting how much money we will collect or how Ministries reallocate funds during the year”.
Dr Musokotwane said accumulation of domestic arrears remained a risk to cash management and private sector confidence.
“Further, accumulation of domestic arrears remains a risk to cash management and Private sector confidence. With regards to the Gender PEFA Assessment, the report shows that while we have the national gender policy and the Constituency Development Fund (CDF) supporting women’s empowerment, we do not currently know how much of the national budget actually reduces gender. With regards to the Gender PEFA Assessment, the report shows that while we have the national gender policy and the Constituency Development Fund (CDF) supporting women’s empowerment, we do not currently know how much of the national budget actually reduces gender inequality. We lack the ‘budget tags’ to track spending on girls’ education versus boys’, or on maternal health versus general health. This has to change. Zambia remains on the front line of climate change, droughts destroying hydro-power and floods ravaging crops. Yet, the Climate PEFA Assessment shows that our financial systems are not yet climate-smart. We scored low on tracking climate expenditure and aligning the budget with our green growth strategy,” said Dr Musokotwane.
“The integrated PFM reform strategy which I have announced earlier is our tool for fixing these issues. Fixing the issues will mean that the school in your village gets its desks on time, drought relief reaches the farmer and the woman in the market gets the financial inclusion she deserves. Therefore, to the Permanent Secretaries: you are accountable. The PEFA shows that good policies fail where execution is weak. To the Civil Society Organisations, lets ensure the findings are analysed and acted upon. To our Cooperating Partners, we thank you for supporting and funding these assessments. We now ask for your technical assistance in ensuring that the identified gaps in the PFM system are closed. As I conclude, let us leave this room committed to one truth: the money belongs to the people of Zambia. we must manage it with integrity, equity and foresight.”
And Germany Ambassador to Zambia Soenke Siemon said his country will remain committed to Zambia’s reform process.
“We as International Partners of the Zambian government will continue to support the speedy implementation of the 2024 to 2027 Integrated Public Financial Management Reform Strategy, it’s a very important strategy; its implementation will strengthen budget credibility, improve expenditure controls and enhance domestic resource mobilization. All this is in our interest as International Partners that’s why Germany and the EU provide technical assistance through a good financial programme. We’re sharing global best practices and we’re working amongst others with the Ministry of Finance, ZRA, Zambia Public Procurement Agency to strengthen assistance and build staff capacity. Germany remains committed to the Reform process led by the Zambian government. Let us manage change together,” said Siemon.
