Institutional Strengthening Programme in support of the Government of Nicaragua for the establishment of a Mid-Term Expenditure Framework (MTEF) – Phase II

A series of measures have been planned within the framework of the Modernization Plan of the Financial Administration System

Description

The Government of Nicaragua has been developing since 2005 the Medium Term Budgeting Directorate or DPMP which in 2010 affected 45 State Institutions. The Swiss Cooperation has supported this process through the financing of the Institutional Building Programme in support of the Government of Nicaragua for the establishment of a Mid-term Expenditure Framework (MTEF) that has supported the Ministry of Finance through a technical assistance between 2005 and 2008 in the training and procedure establishment of the preparation of the DPMP.

As part of the impact evaluation of this first phase, a seminar was conducted by the Ministry of Finance and Treasury Department and several challenges were identified. In order to consolidate the results achieved in the first phase, and to advance in the medium term budgeting process, a series of measures have been planned within the framework of the Modernization Plan of the Financial Administration System.

The evaluation process has lead to several conclusions: the quality of the results of the Medium Term Budgeting Directorate can be improved, both in terms of contents as in terms of optimization of possibilities for the improvement in the efficiency of public expenditure. In this second phase, the Suisse Cooperation has therefore committed to improve the quality and the DPMP as priority instrument in the strategic planning and budgeting of the expenses. During this second phase of the project the TA to the MoF will focus on the following:

  • The quality of budget formulation through the institutionalization of tools for the analysis of public expenditure and programme implementation of public institutions
  • Training and support to State Institutions throughout the complete process of preparation of the Medium Term Budgeting Directorate (analysis, prioritization, programme structuring and budget formulation)
  • The consolidation of the legal framework, through the reform of the Finance Administration Law (La Ley 550)
  • Knowledge diffusion and tool sharing between the Central Government, Members of the National Assembly, civil society and actors of the international cooperation community.

Activity

Types of services within the project included:

  • Institutional Strengthening;
  • Budget and Financial Analysis;
  • Budgeting process;
  • Public Expenditure Reviews;
  • Macroeconomic Studies;
  • Training Seminars;
  • Manuals and methodological guides;
  • Specific backstopping;
  • Inter-institutional coordination.