Boosting the Effectiveness of Government Spending in the Kyrgyz Republic

In the course of our collaboration with the Kyrgyz Republic, we facilitated the diagnosis of its legal and institutional framework and practices with a view to medium-term expenditure planning at its Ministry of Finance (MoF) as well as in sectoral ministries. In addition, we made initial steps towards fostering reinforcement of the interrelationship between mid-term planning and annual budgeting by strengthening the respective policy and legal framework.

Accordingly, we have produced a first set of analytical reports based on reviews of: the country’s National Development Strategy;  the Government program “Unity. Trust. Creativity”; sectoral programs such as the Key Directions of Fiscal Policy document (KDFP); the core business processes of a medium-term budget forecast (MTBF); and reporting structures and requirements. In addition, the reports were also informed by a study of the alignment of national and sectoral programs with the medium-term budget.

We have also developed an analytical note, demonstrating the best international practices and experiences in mid-term budget planning and program-based budgeting to allow the Kyrgyz MoF to select the most suitable model for further advancement of current budget planning practices in the country.

“It is a very important set of reviews as the documents give a general idea of the weaknesses and strengths of the respective legislation and strategic documents that guide mid-term and annual budget planning in the Kyrgyz Republic. The reviews also enable identification of legislative and policy gaps, thus giving helpful directions for further work under the project,” said Natalia Gordeziani, Project Manager at PMCG.

With the aim of sharing its experience, PMCG also hosted a webinar, designed to present to the representatives of the Kyrgyz MoF the practices of Georgia with respect to mid-term budget planning and program-based budgeting, to discuss the similarities and differences in the countries’ approaches, and to identify possible enhancements to increase the effectiveness of government spending.

All of these activities were conducted as part of the project “Improving Program-Based Budgeting and Budget Investment Planning, Including Improvements in Sectoral Expenditure Planning,” which is funded by the Multi-Donor Trust Fund and is being implemented by PMCG.

Please kindly follow the link below for detailed information about the project:
Improving Program-Based Budgeting and Budget Investment Planning, Including Improvements in Sectoral Expenditure Planning