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Program Budgeting Gap Analysis and Reform Strategy Development in Armenia

Programme budgeting (PB) reforms started in Armenian in 2004 and mainly targeted the Ministry of Finance and a few line ministries (mainly social sector). The next step envisaged was to widen PB reforms to cover all line ministries, central agencies and territorial administrations. Different assessments done by development partners have revealed gaps in coordination and harmonisation of PB reforms with other simultaneous PFM sector reforms such as public sector accounting, treasury, internal and external control and audit reforms, etc.

In the framework of further cooperation between the Ministry of Finance and the GIZ PFM Programme, and based on previous findings, it was agreed to analyse the current state of the PB reforms, reveal the gaps and develop a new detailed strategic action plan for further implementation of reforms. On the basis of this output, the Ministry of Finance will be able to effectively steer, implement and monitor the reform process. Furthermore, it will stimulate better coordination of both the cooperation between all key players of PFM sector, and conduction and prioritization of other relevant reforms.

The main objective of the assignment was to support the Ministry of Finance of Armenia in further coordination and roll-out of the program budgeting (PB) reforms through conducting a Gap analysis on PB reforms in Armenia, an elaboration of a Strategy on PB reforms as well as its detailed Implementation Plan for the further implementing period. The main tasks were to support the Ministry of Finance in:

Task 1: Gap analysis for the further implementation of PB reforms
Task 2: Elaboration of the PB Strategy and its detailed Implementation Plan for the upcoming years
Task 3: Elaboration of a steering mechanism for the PB reform

 

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