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Pacific Finance Managers' Meeting & Workshop on Better Practice for Medium Term Budgeting

Palikir, Pohnpei (FSM Information Services): November 30, 2011 - Finance and Budget Managers from Pacific island countries, consultants and donor representatives gathered in Nadi, Fiji on November 7 to 9, 2011 for an annual meeting and a regional workshop on Building a Better Framework for Medium Term Budgeting. Under ADB sponsorship, FSM was represented by Assistant Director for Budget and Economic Management, Ignacio Stephen. Neighboring North Pacific countries of Palau and Marshalls sent 3 participants each.

The meeting was a good way to see FSM's efforts and status in financial management, planning and budget controls. FSM endorses Medium Term Budget system under Public Law No. 14-61. Our budget and economic planning structure, combined under one office (SBOC) was reported in the meeting as innovative and recommended model for Pacific countries to consider. It was noted as an effective model for integrated budget and economic planning according to advisors for the workshop

While most Pacific countries have completed their assessment for Public Expenditure and Financial Accountability (PEFA) like other countries in other regions, FSM has only started on the PEFA project earlier this year. A workshop was conducted earlier this year in Palikir, and a self-assessment was done last September. To complete the project, an in-depth PEFA assessment is planned to begin November 28 and will utilize experienced consultants who had done similar assessments for other countries in the past. Such assessment would assist to show the state of our budget controls and financial accountability and transparency. It will also facilitate future efforts in building effective working relationships with potential donors.

In summary, FSM appears to be in fair shape for budgeting and financial accountability but needs improvement in transparency and strategic resource allocation.