Case Study
Project Technical Resource Facility plus Roadmap (TRF+) Client Department for International Development (DFID) Location Pakistan (Punjab and Khyber Pakhtunkhwa) Expertise International Health – Technical Assistance and Programme Management
Strengthening Public Financial Management Systems The Provincial Health and Nutrition Programme (PHNP) was launched in 2013 to address the poor state of maternal and child health (MCH) in Punjab and Khyber Pakhtunkhwa (KP) provinces. Mott MacDonald led and managed the TRF+ element of the programme. A significant focus of the work was the strengthening of public financial management capacity and systems to enable more accurate budgeting and expenditure tracking, ultimately leading to service delivery improvements. Opportunity Sound public financial management relies on accurate and relevant data on which budget allocation decisions can be based and expenditure tracked. Without this, funds are less likely to flow where they are needed on time, and valuable staff time is wasted in re-allocating funds. Inaccurate budgeting also leads to low utilisation of budgets where, despite the real needs, money ends up returned to the Treasury and services suffer because of inefficiencies. The health departments in both Punjab and KP needed expert support to improve financial management to ensure efficient and effective public services by obtaining greater Value for Money (VFM) in public spending and combating any malpractices. 326972 | January 2014 - March 2019
Solution In Punjab, we developed a risk mitigation plan (RMP) for the government and provided technical assistance and capacity building to help implement it. Activities were sequenced and prioritised with a “getting the basics right first” approach. TRF+ supported the establishment of a dedicated Financial Management Cell (FMC) and employed long-term consultants to assist in: (i) budget reforms, (ii) budget execution, accounting and expenditure reporting, and (iii) budget performance monitoring. were provided by TRF+ PFM specialists provided backstopping and quality assurance to develop the skills of FMC’s staff. Our team used a ‘platform approach’1 to sequence the reforms. This involved preparation of a six monthly RMP implementation plan that included prioritised activities with timelines and responsibilities. This plan was also used as a tool by the department’s senior management, TRF+ and DFID to assess progress. Outcome A comparison of pre and post TRF+ intervention to improve the PFM systems clearly shows that in both Punjab and KP, staff and processes are much stronger now to deliver PFM work. This is validated by the evidence on reduction in appropriations, supplementary grants, improved budget utilisation rates, and easily accessible data on allocation and expenditures. For example: Budget credibility improved using planning formats and appropriate object codes, resulting in a decrease in variance from 28% to 5% (see Figure) which led to a reduction in re-appropriations and supplementary grants.
Budget classification system improved, allowing budget allocations under a more detailed classification system that increased budget transparency and led to more meaningful budgetary analysis.
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The platform approach aims to implement a package of measures or activities designed to achieve increasing levels (‘platforms’) of PFMA competence over a manageable timeframe. Each platform establishes a clear basis for launching to the next, based on the premise that a certain level of PFM competence is required to enable further progress to take place. (source: a platform approach to improving public financial management, DFID, 2005
Increased budget utilisation rate from 78% in 2014-15 to 87% in 2017-18 as a result of improved budgeting and monthly budget expenditure reviews. Over time, PFM reforms became recognised as a problem-solving initiative and TRF+’s presence proved helpful to government to help them navigate and implement the reform agenda. The work resulted in significant changes that have had a real impact on how efficiently the department operates, and with it a sustainable change in terms of capacity. “We fully acknowledge and appreciate the efforts of TRF+ consultants for the accomplishment of this very important task which will go a long way in achieving transparency in public funds management and service delivery.� Deputy Secretary (Budgeting and Accounting), Primary & Secondary Healthcare Department, Punjab, September 2017