PUBLIC FINANCE MANAGEMENT

Public Financial Management – PFM
Working on PFM, dldp supports partner LGUs in improving processes and practices towards more transparent, accountable and participative strategic and financial management (planning / budgeting / execution / monitoring and reporting). dldp 3 will emphasize on closing the whole PFM cycle and thus contribute to these core tasks of local governments. Bringing learning and experiences into national policy dialogue regarding PFM (complementary with PLGP/USAID working in fiscal decentralization and local taxes), dldp contributes to lay the ground for an efficient implementation and further development of fiscal decentralization and sound public financial management.

dldp 3 will thus support its partner LGUs to, mainly by:
• Consolidating of the achievements on SDPeMTBP in old LGUs: by assisting old (and later new) LGUs to use the planning instruments to maintain the strategic orientation as much as possible without violating the requirements of fiscal discipline;
• Up-scaling of SDPeMTBP to new LGUs: by introducing these tools to new LGUs, training and supporting the new LGUs in proper use and thus solidifying the tools
• Shifting the emphasis from financial planning to budget information and control: closing the cycle by extending support and the linked development of tools further into budget execution, monitoring and report. Other selected topics could be public procurement, resource mobilisation etc, that will be defined with LGUs concerned in the beginning of dldp 3;
• Linking PFM and performance grant: by using key PFM performance indicators in the performance grant scheme;
• Apply some innovative income generation projects with motivated and matured LGUs
• Encouraging the political leadership in the PFM process, making them familiar with good practice and through knowledge exchange on how to do it;
• Bring lessons learned from improved PFM processes in partner LGUs into national guidelines, in close collaboration with national experts and key agencies.
• Capacity development and handing over (anchoring) of PFM tools and consolidated training curricula, with focus on selected institution(s) on national level that will be enabled to use, disseminate and further develop the different tools on national level;
• Engage in dialogue on enhanced fiscal decentralization, in close cooperation with other actors and programmes
• Support and contribute to the territorial reform was research projects and demand based interventions