Enhancing Fiscal Compliance with Government Sector Strategies
This document discusses the alignment of government sector strategies with medium-term fiscal parameters, focusing on budget support, policy classification, and program budget structures to ensure effective financial management and strategic planning.
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Compliance of Government Sector Strategies with Medium-Term Fiscal Parameters September 28, 2023 Tbilisi
EU-EGFA - Budget Support 2023-2026 Compliance of Government Sector Strategies with Medium-Term Fiscal Parameters Target for year 2023: Template of an annex to the annual state budget package submission to tag government sectoral strategies with the budget programs prepared and discussed with the relevant stakeholders; Template of an annex to the annual state budget package submission to tag government sectoral strategies with the budget programs prepared and discussed with the relevant stakeholders; Source(s) of verificationMoF website (www.MoF.ge); Stakeholder discussion meeting minutes and the template of the annex to the annual budget law. Target for year 2024: The annex to the annual state budget package reflects tagging of government sectoral strategies with the budget programs prepared for at least one sectoral strategy Source(s) of verification:MoF website (www.MoF.ge); State Budget Law Package 2025. Target for 2026: 2027 state budget law package includes the annex reflecting all government sectoral strategies Source(s) of verification: MoF website (www.MoF.ge); State Budget Law Package 2027. Amount of the Budget Support - 1,000,000
The Policy Classifier To enhance the alignment between strategic and policy documentation and the budgetary framework, the "tagging" tool was incorporated into the e- budget system. The "Policy Classifier" component within this tool enables all spending units to link their programs/sub-programs with the relevant policy classifier, including Sustainable Development Goals (SDG), Gender Equality, Climate Change, Sectoral Strategies, and others. Sustainable Development Goals - SDG; Human Capital Goals Gender Equality Climate Change Climate Change - Mitigation; The information about these linkages is reflected in the Program Budget; Climate Change - Adaptation; Climate Change - Mitigation and Adaptation; According to the policy classifier, relevant expenses will be identified and reflected in the budget documentation. Rural Development Human Rights Energy Efficiency Sector Strategies - Vision 2030.
Program Budget - Current Structure Program Name and Program Code Implementing Agency Policy Classifier Description and Goal of the Program Program Outcome Indicator of Program Outcome Possibility of Deviation (%/Description) N Name of Indicator Baseline Indicator Targeted Indicator Potential Risks 1 2 3 4 5 According to the specifics of the programs, in relation to gender-sensitive programs, it is important to select the gender aspect of the program as one of the program evaluation indicators. 4
The Medium-Term Fiscal Impact Of Policy Classifiers Thousand GEL Policy Classifier Budget Year Budgeted Year +1 Budgeted Year +2 Budgeted Year +3 Gender Equality Climate Change Climate Change - Mitigation Climate Change - Adaptation Climate Change - Mitigation and Adaptation The United Nations Sustainable Development Goals - SDG SDG 1 NO POVERTY SDG 2 ZERO HUNGER SDG 3 GOOD HEALTH AND WELL-BEING SDG 4 QUALITY EDUCATION SDG 5 GENDER EQUALITY SDG 6 CLEAN WATER AND SANITATION SDG 7 AFFORDABLE AND CLEAN ENERGY SDG 8 DECENT WORK AND ECONOMIC GROWHT SDG 9 INDUSTRY, INOVATION AND INFRASTRUCTURE SDG 10 REDUCED INEQUALITIES SDG 11 SUSTAINABLE CITIES AND COMMUNITIES SDG 12 RESPONSIBLE CONSUMPTION AND PRODUCTION SDG 13 CLIMATE ACTION SDG 14 LIFE BELOW WATER SDG 15 LIFE ON LAND SDG 16 PEACE, JUSTICE AND STRONG INSTITUTIONS SDG 17 PARTNERSHIPS FOR THE FOALS Human Capital Goals Rural Development Energy Efficiency Sector Strategies Strategy 1 Strategy 2 Strategy 3 ---
The Medium-Term Fiscal Impact Of Policy Classifiers % with Expenditures Gender Equality #DIV/0! #DIV/0! #DIV/0! #DIV/0! Climate Change #DIV/0! #DIV/0! #DIV/0! #DIV/0! Climate Change - Mitigation #DIV/0! #DIV/0! #DIV/0! #DIV/0! Climate Change - Adaptation #DIV/0! #DIV/0! #DIV/0! #DIV/0! Climate Change - Mitigation and Adaptation #DIV/0! #DIV/0! #DIV/0! #DIV/0! The United Nations Sustainable Development Goals - SDG SDG 1 NO POVERTY #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 2 ZERO HUNGER #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 3 GOOD HEALTH AND WELL-BEING #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 4 QUALITY EDUCATION #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 5 GENDER EQUALITY #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 6 CLEAN WATER AND SANITATION #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 7 AFFORDABLE AND CLEAN ENERGY #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 8 DECENT WORK AND ECONOMIC GROWHT #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 9 INDUSTRY, INOVATION AND INFRASTRUCTURE #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 10 REDUCED INEQUALITIES #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 11 SUSTAINABLE CITIES AND COMMUNITIES #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 12 RESPONSIBLE CONSUMPTION AND PRODUCTION #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 13 CLIMATE ACTION #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 14 LIFE BELOW WATER #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 15 LIFE ON LAND #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 16 PEACE, JUSTICE AND STRONG INSTITUTIONS #DIV/0! #DIV/0! #DIV/0! #DIV/0! SDG 17 PARTNERSHIPS FOR THE FOALS #DIV/0! #DIV/0! #DIV/0! #DIV/0! Human Capital Goals #DIV/0! #DIV/0! #DIV/0! #DIV/0! Rural Development #DIV/0! #DIV/0! #DIV/0! #DIV/0! Energy Efficiency #DIV/0! #DIV/0! #DIV/0! #DIV/0! Sector Strategies Strategy 1 #DIV/0! #DIV/0! #DIV/0! #DIV/0! Strategy 2 #DIV/0! #DIV/0! #DIV/0! #DIV/0! Strategy 3 #DIV/0! #DIV/0! #DIV/0! #DIV/0! --- #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Medium-Term Fiscal Impact of Government Strategies A template of the Annex to the draft State Budget Law Table N1 Thousand GEL Policy Classifier Budget Year Budgeted Year +1 Budgeted Year +2 Budgeted Year +3 Sector Strategies Strategy 1 Strategy2 Strategy 3 --- % with Expenditures Sector Strategies Strategy 1 Strategy2 Strategy 3 ---
Medium-Term Fiscal Impact of Government Strategies A template of the Annex to the draft State Budget Law Table N2 /Thousand GEL/ Policy Classifier Budget Year Budgeted Year +1 Budgeted Year +2 Budgeted Year +3 Strategy 1 Program 1 Sub-Program 1 Sub-Program 2 Sub-Program 3 ---- Program 2 Sub-Program 1 Sub-Program 2 Sub-Program 3 ---- Program -- Sub-Program 1 Sub-Program 2 Sub-Program 3 ---- % with Expenditures Strategy 1 Program 1 Program 2 Program -- ----
Example: Vision 2030, Georgia's Development Strategy A long-term policy document that represents the unified vision of the government and combines all the main priority areas of sustainable development : Defense and Safety; Economic Development; Social Policy and Human Capital Development; State Governance
Tagging the State Budget Programs with Sectoral Strategies Linking The Budget Program With The Vision 2030 Development Strategy Of Georgia Allocation of program - Budget Year Budget Year +1 Budget Year +2 Budget Year +3 Budget of the Activity (thousand GEL) Program Code Implementing Agency Policy Classifier Number of Activity Program Name Direction Name of Activity Comment (Thousand GEL) (Thousand GEL) (Thousan d GEL) (Thousa nd GEL) % % % % Monitoring and analysis of budget execution to ensure the compliance of budget framework with fiscal parameters Ministry of finance of Georgia 23 01 Public Finance Management Economic Development Vision 2030 1.1.1 5,151.0 25,430.0 20.3% The information should be filled by spending units through the e-budget system; In many cases, the sector strategy does not have costing and the strategy action plans are prepared for a period of 1-2 or 3 years, which is accompanied by the cost estimates for the appropriate years. In such cases, the linkage to the strategies of the programs/ sub-programs is based on action plans and depending on the duration of the strategy, in the following years (if the action plan is prepared for a period of less than 4 years), the expected forecasts should be filled according to the duration of the strategy.
