The Ministry of Finance (MoF) is responsible for ensuring prudent management of public finance through efficient resource mobilization and judicious allocation; which entails raising domestic revenue and mobilizing loans from International financial Institutions and bilateral agencies for socio-economic development. This report discusses the progress made by the MoF during FY 2010-11.
The report begins by discussing macroeconomic policy and outcomes, economic growth, GDP, and balance of payments in light of inflation and international reserves. Domestic revenue, and the factors that led to its rise, such as an increase in personal income tax, is discussed. Financing institutions, such as the Asian Development Bank, World Bank, and Government of Austria, are also cited for the critical role they play in strengthening the economy.
A number of initiatives and achievements have taken place, as the report indicates, that have catalyzed economic reform. Not only have tax payer services improved, public finance management has witnessed some changes as well, in addition to procurement reform and changes in accounting standards. Overall, the financial sector has witnessed improvement, evidenced in increased supervision and the revamping of the corporate governance structure. The report concludes with a number of issues and insights, some of which are:
MoF still faces challenges in mobilizing resources, to meet increasing government expenditure
local tax structure and administration needs revisiting to increase domestic revenue
effective financial management, and accountability mechanisms, are now in place to usher a better economic future