Improve Public Finance Management processes in Ozurgeti Municipality through inclusive and active participation (GEOGT0004)
Overview
At-a-Glance
Action Plan: Action plan – Ozurgeti, Georgia, 2021 – 2021
Inception Report: Inception Report – Action plan – Ozurgeti, Georgia, 2021 – 2021
Commitment Start: Aug 2021
Commitment End: Dec 2021
Institutions involved:
- Ozurgeti Municipality City Hall Ozurgeti Municipality City Council
- Ozurgeti Municipality City Council
- United States Agency for International Development (USAID) funded Good Governance Initiative program in Georgia (USAID GGI)
Primary Policy Area:
Primary Sector:
OGP Value:
- Civic Participation
- Public Accountability
- Access to information
Inception Report Summary
Verifiable: Yes
Relevance to OGP Values: Yes
The commitment is a new regulation, policy, practice or requirement.
The commitment activities is a positive change to a process, practice or policy but will not generate a binding or institutionalized change across government or specific institution(s).
To view the detailed final assessment of this commitment read the End of Commitment Report
Description
Commitment ID
GEOGT0004
Commitment Title
Improve Public Finance Management processes in Ozurgeti Municipality through inclusive and active participation
Problem
A strong PFM system is an essential element of the institutional framework for a well-functioning state. Effective PFM systems generate long lasting benefits, and significantly contribute to establishment of inclusive institutions, greater gender equality and balanced growth. Countries with strong, transparent and accountable PFM systems are better positioned to deliver services more fairly and effectively.
According to 2018-2021 PFM reform strategy, the main goal of the Government of Georgia is to ensure rational use of public finances. In order to achieve this goal, it is important to strengthen PFM systems that ensures fiscal discipline, efficiency and effective allocations of public resources in Georgia. As evident from many reviews and evaluations, including the one using PEFA indicators, public financial management systems in Georgia is strong and have been further improved as PFM Reform Action Plan has been implemented. Despite the above-mentioned progress, effectiveness of public finance management systems at the local level still remains an acute challenge in Georgia.
In order to analyze the performance of the PFM system, Ozurgeti Municipality with USAID GGI’s support went through the PFM assessment using PEFA indicators in 2020. PFM assessment using PEFA indicators revealed areas where further improvements are required with specific focus of midterm planning and budget, reporting and control and accountability and transparency.
Status quo
Although the Ozurgeti Municipality has been implementing civic budget as well as developing municipal budgets in full conformity with the program budget development methodology adopted by the Minister of Finance of Georgia, further improvement of the PFM process including though inclusive and active civic participation remains is a priority for the Municipality, especially when currently the public participation still remains limited.
Action
In order to improve PFM processes through inclusive and active civic participation Ozurgeti Municipality will:
- Hold series of public meetings involving different stakeholders to discuss FY2022-2025 Budget Priorities of Ozurgeti Municipality;
- Develop Draft Initial drafts of: FY2022-2025 Priority Document; FY2022-2025 Medium Term Action Plan and FY2022 program budget (together with: Program budget annex; Capital budget annex; Budget annex of municipal organizations).
- Hold series of public meetings involving different non-governmental stakeholders to discuss drafts of FY2022-2025 Priority Document; FY2022-2025 Medium Term Action Plan and FY2022 program budget.
- Finalize and approve: FY2022-2025 Priority Document; FY2022-2025 Medium Term Action Plan and FY2022 program budget (together with: Program budget annex; Capital budget annex; Budget annex of municipal organizations).
- Develop Citizens’ Guide for the local budget for FY2022 and make available to the public.
- Develop annual FY2021 budget execution report and present to the public.
How will the commitment contribute to solving the public problem described above?
Through effective implementation of the commitment PFM processes in Ozurgeti Municipality will be improved including though active and inclusive civic participation, thus FY2022 budget will more adequately address needs of the local population as well as meet the PEFA recommendations. As a result, level of public accountability and transparency of the Municipality will be considerably amplified
What long-term goal as identified in your Open Government Strategy does this commitment relate to?
The Municipality considers Public Finance Management as another area that needs further improvement at the local level. Further improvement of the Public Finance Management process will strengthen inclusive and active civic participation, which is perfectly in line with the long-term objective of the Municipality and thus, is committed to upholding the principles of open and transparent government.
Primary Policy Area
Fiscal Openness, Inclusion
Primary Sector
Cross-sectoral
What OGP value is this commitment relevant to?
| Civic Participation | The introduction of the Public Finance Management process in the Municipality will provide an opportunity to strengthen the active and inclusive participation in the local decision-making processes. |
| Public Accountability | As a result of the increased civic participation and inclusion, the FY2021 budget will be more adequately addressing the needs of the local population, and thus, the level of public accountability of the Municipality will be considerably strengthened |
| Access to information | The Public Finance Management process by initiating is an important step for improving the access to information about the local budgetary processes. |