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IMPLEMENTATION OF THE PUBLIC FINANCIAL MANAGEMENT REFORM

3/29/2021

Within the framework of the "Strengthening Governance in Mongolia" project, the Government of Mongolia has been cooperating with the Ministry of Finance and International development partner organizations to implement the Public Financial Management (PFM) Reform, which is consistent with the country's social and economic development priorities, for achieving the effective resource allocation, efficient public service delivery and improving governance and accountability. 


PFM Reform Strategy was developed within ten strategic objectives (76 reform activities) and was approved by the Decree No.192 of the Minister of Finance dated August 30, 2019. A more detailed, activity-level Action Plan to support the PFM Strategy was then produced and approved by the State Secretary of the MOF (Order No. A281) on September 30, 2019. Reform activities and tasks are under the direct responsibility of departments and divisions of the MOF. 

Following outcomes have been achieved towards the PFM Action Plan: 

  • Relevant regulations and methodologies have been approved within the framework of the strategic objective of enhancing public investment management, a web portal for informing investment activities have been developed and fully introduced.
  • Within the framework of the strategic objective of improving internal financial control, procurement of equipment required for internal audit control and inspection was carried out, and design documents and terms of reference for the development of Internal Audit Management Information System have been developed. In addition, the concept of the draft Law on Public Sector Internal Audit was approved and the first draft of the law was is ready to be submitted to the State Great Hural.
  • Within the framework of macroeconomic policy planning and coordination, specialists and employees of the Economic Policy Department have participated in local and overseas capacity building trainings in the field of macroeconomic forecasting and policy analysis, and economic models for macroeconomic calculations and analysis have been developed and introduced as a result of the training. 
  • In progressing the adoption of international accounting standards, translation of International Public Sector Accounting Standards (IPSAS) has been completed. Moreover, the training on IPSAS for accountants of budget entities was organized successfully. 
  • For the Strategic objective of ensuring financial market stability, the platform for trading government securities has been developed and pilot tested. In addition, the ODAFIN and ODAMIS foreign credit and aid management information systems have been developed and launched. 
  • As a result of major changes in tax laws as part of tax policy, Mongolia has joined the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes and Inclusive Frameworks on Base Erosion and Profit Shifting.
  • Within the framework of budget expenditure control, the methodology for calculating basic budget expenditures was revised and some fixed and recurrent expenditure functions were fully assigned to local basic expenditures.  
  • The Integrated Payroll System (IPS) has been developed and pilot-tested to improve budget revenue and expenditure management. A total of 4,045 budget entities have registered in the IPS. Furthermore, significant progress is being made in introducing Gender Responsive Budgeting to some of the selected ministries' programs (Ministry of Labor and Social Protection, Ministry of Education and Science).   
  • Twice a day, cash revenue and expenditure surveys and projections are presented within the framework of the strategic objective to enhance the integrated budget planning.
                          
Implementation of the plan is being recorded through the “Leader Monitoring” system of internal audit, monitoring and evaluation of the Ministry of Finance. The evaluation of the implementation is being carried out in accordance with the “Common Regulation for Assessing, Monitoring and Evaluating the Implementation of Policy Documents and Activities of Administrative Bodies” approved by the Government Resolution No.89 of 2017 and Resolution No.206 of 2020 and the rate is 70 percent “Certain results have been achieved”.
Public Expenditure and Financial Accountability (PEFA) Assessment is a tool for measuring PFM systems' performance, and the bulk of the PFM Reform inputs were drawn on the data provided by the PEFA Assessment for Mongolia that was undertaken firstly in 2015. As the Government of Mongolia has agreed on getting carried out the second PEFA Assessment, the assessment's official launch was organized in December 2020. 
Following the virtual launch, a two-day introductory training workshop to introduce and elaborate on the PEFA framework and assessment process was conducted with government officials' participation from the MOF and Mongolian National Audit Office. Mr. Andrei Mikhnev, the World Bank Country Manager and Resident Representative for Mongolia, opened the launch workshop, followed by the speech of Mr. Pierre-Yves Lucas, Team Leader of the Cooperation Section of the EU Delegation, and Mr. Narantsogt Sanjaa, the State Secretary of the MOF gave speech. 
The World Bank also organized a two-day online training for more than 60 officials from the Ministry of Finance and the National Audit Office on how to assess the PEFA and process the required data. The assessment data collection phase has commenced in February, and the final report will be submitted by the World Bank to the Government of Mongolia in July 2021. The MOF is aiming to revise and approve the action plan of implementing the PFM reform strategy and to introduce a more sophisticated system to monitor and evaluate the implementation of the objectives and measures set out in the plan based on the PEFA findings and recommendations.

NEWS
WORLD BANK WORKING GROUP MET WITH PIU AND IMPLEMENTING ORGANIZATIONS REGARDING THE COMPLETION REPORT OF THE STRENGTHENING GOVERNANCE IN MONGOLIA PROJECT

4/3/2023

Concerning the Strengthening Governance in Mongolia project, which was completed on February 28, 2023, the World Bank working group to develop the project completion report had an official meeting with Project Implementation Unit (PIU) and implementing organizations on March 30, 2023. The purpose of the working group meeting is to review the implementation of the project, the results achieved, and the fulfillment of the project indicators.

PERFORMANCE BASED FINANCING: INSPIRING NEW APPROACHES TO PUBLIC FINANCIAL MANAGEMENT IN HEALTH AND EDUCATION

3/23/2023

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3/7/2023

    Under the scope of improving public financial management, Mongolia is aiming to introduce result-oriented medium-term budgeting, transitioning from the traditional input-based budgeting. This goal is aligned with development policy of Mongolia to shift from medium-term fiscal framework (MTFF) to medium-term expenditure framework (MTEF).

The MOF is entering the new phase of PFM Reform Action Plan

2/28/2023

Within the framework of the European Union financed, World Bank managed “Strengthening Governance in Mongolia” project, the Ministry of Finance, in compliance with the “Sustainable Development Vision 2030” and the “Action Program of the Government of Mongolia for 2016-2020”, has approved and implemented the Public Financial Management (PFM) Reform Strategy and the Action Plan for 2018-2022. The overarching objective of the strategy was to improve governance and achieve effective resource allocation and efficient public service delivery. The implementation status of the PFM Action Plan is indicated as “Certain results have been achieved” at the rate of 85 percent.
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The Ministry of Finance Mongolia has developed and successfully launched the new version of the Glass Account Portal in 2023 within the framework of the Strengthening Governance in Mongolia Project jointly implemented by the EU and the World bank.

New systems and services are added in the Intermediate service platform for fiscal and financial systems

1/11/2023

The Ministry of Finance Mongolia has developed and successfully launched the Intermediate Service Platform (ISP) in 2022 within the framework of the Strengthening Governance in Mongolia Project. The main purpose of the system is to provide a possibility of information /web services/ exchange between the independent systems of the Ministry of Finance and other organizations in a easy and flexible way. In addition, it is solving the issues of overlapping connections and development between many information systems and organizations, transferring them to a unified standard, making it has no complexity, and more secure.

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