| FISCAL MANAGEMENT REFORM PROGRAM 1. The Fiscal Management Reform Program (FMRP) is a sector development program comprising three loans, which were signed by GOSL with ADB on 20th December 2004. It guaranteed financial assistance to the tune of US$ 70 million in total for implementation of a comprehensive Fiscal Management Reforms Program ((FMRP) embracing the three revenue departments; IRD, Customs & Excise Depts. and such agencies under the Ministry of Finance & Planning as FPD, NPD, NBD, PED, TOD & SAD. 2. The details of the three (3) loans and their objectives in brief are as follows:- (a) Program or Policy Loan entitled 'Fiscal Management Reform Program' (FMRP) of US$ 45 million FMRP supports the strengthening of public finances by improving public resource and expenditure management and control systems, promoting fiscal discipline and fiscal co-ordination, improving budget frame work and improving effectiveness of tax and customs administration. FMRP will help create an enabling environment to foster mobilizing of tax revenues, improve effectiveness of public expenditures and ultimately place public finances on a sustainable footing. (b) Project Loan entitled 'Strengthening of Fiscal Management Institution Project' (SFMIP) of US$ 10 million The principal objective of SFMIP is to provide capacity building support for institutional development of Fiscal Management Institutions thereby promoting development of skills and know-how through the contracting of external expertise and transfer of knowledge through training and workshops. The project consists of consulting services and training in the following areas; Revenue Administration, Fiscal Management, Human Resource Development, and training in all three revenue departments and Treasury departments. In addition there will be short-term consultancies for special areas. (c)
Project Loan entitled Modernization of Revenue Administration
Project (MRAP) of US$ 15 million The objective of MRAP is to support institutional strengthening focusing primarily on the procurement of equipment for the modernization of revenue administration to ensure prompt and smooth transformation of revenue administration. The project consists of the following, among others, provision of equipment including computer hardware and software for modern revenue administration, applications to support a comprehensive integrated electronically enabled revenue administration Management System` 3. Project office is set up on the 14th floor of Inland Revenue Department (IRD) building and is headed by the Program Director who is responsible for implementing all project related implementation across the spectrum of FMRP activities including non-revenue fiscal management issues. In addition to being head of PIU, Program Director would function as Secretary to Inter-agency Implementation and Coordination Committee (IICC). 4. The program and the two projects collectively referred to as FMRP are expected to be completed by 31st December 2007. |