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Experience with MfDR Approach in Bangladesh

Experience with MfDR Approach in Bangladesh. Dr. Mohammed Tareque Additional Secretary Finance Division, Ministry of Finance Government of the People's Republic of Bangladesh. MfDR Approach in Bangladesh: the Political Imperatives.

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Experience with MfDR Approach in Bangladesh

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  1. Experience with MfDR Approach in Bangladesh Dr. Mohammed Tareque Additional Secretary Finance Division, Ministry of Finance Government of the People's Republic of Bangladesh

  2. MfDR Approach in Bangladesh: the Political Imperatives • GoB commissioned a Public Expenditure Review Commission (PERC) in 2002 • The Commission recommended • To introduce MTBF • To establishing a result oriented public expenditure management system. • National Strategy for Accelerated Poverty Reduction (NSAPR, - our PRSP) has been formulated. • To achieve the strategic goals and key targets of PRSP • An arrangement being designed to establish effective linkages between the annual budgetary process and the PRSP.

  3. Steps taken to Support Results Management Orientation • Gradually more and more ministries are being brought in under the umbrella of the MTBF • Budget Management Committees (BMCs) established • Resource allocation is being linked to performance criteria • Government has published an Internal Control Manual (ICM) and a Public Expenditure Manual (PEM) • to ensure value for money and improved governance in resource allocation. • Parliamentary oversight is being enhanced & sharpened • Moving towards ‘entity auditing’ from traditional auditing

  4. Obstacles Faced in the Process • Unwillingness of the planning agency in joint review of the capital and current components of the budget (hinders the expected results of MTBF approach) • Changed roles of Planning Commission and Change Management Issues • Organisational separation of the revenue and development budget within line ministries • Inadequate capacity of Finance Division, Planning Commission and of line ministry • One cadre for Accounts and Audit • Structural Rigidities of Financial Management Academy (FIMA)

  5. Steps needed to Remove the Obstacles • Establishing better co-operation and coordination between the ministries of finance and planning and • Defining changed role of planning people to avoid confusion and frustrations (or whether to do away with PC?) • Creation of a single unit responsible for integrated budget management in each line ministry (through internal reorganization) and • Development of policy and budget managing capacity within line ministry.

  6. Lessons Learned in Moving towards a Results Management Approach • Effective communication and continuous dialogue • To promote confidence and trust in each others intentions and improve coordination between Planning and Finance • Increased participation of senior management in the process is the key • Development of the right kind of human resources development policy is required • To maintain continuity, skills transfer and institutional memory. • As new roles are emerging new institutional set ups need to be developed and obsolete ones need to be discarded • Right kind of leaderships and a core group of managers need to be germinated with the right kind of vision and bonded by common spirit and motivation

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