Enhancing the Public Financial Management (PFM) Capacity of Two Georgian Municipalities

We, under the Good Governance Initiative (GGI) program, recently started a new project, aiming to strengthen the public financial management (PFM) capacity of two Georgian municipalities, namely Rustavi and Zugdidi. This program will cover the implementation of program budgeting methodology in practice, enhance the budgeting process, and improve two important principles of the budgeting system – transparency and accountability – in these municipalities.

More specifically, we aim to assist Rustavi and Zugdidi municipalities in the elaboration of their FY2022 program-based budget packages in compliance with the latest program budget development methodology, and in line with public expenditure and financial accountability (PEFA) recommendations.

During the project, we will provide recommendations to further improve the decrees of the Mayors of Rustavi and Zugdidi on the preparation of 2022-2025 priority documents, medium-term action plans, budget requests, priority documents, program budgets, citizens’ guides, annual budget execution reports, and the organization of public meetings.

“One of the challenges in enhancing the public finance management is the effective implementation of the program budgeting at the local level. The target municipalities themselves are highly motivated to have a much better program budgeting for 2022 than in previous years. We hope that in the framework of this project, the best practice of result-oriented budgeting will be introduced, which will contribute to the efficiency and transparency of self-government activities,” said Ms. Nino Loladze, Consultant at PMCG, while adding that “most importantly, effective citizen engagement mechanisms will be actively used in the program budgeting implementation process, which will increase trust in PFM and, ultimately provide better services to the local communities.”

This project is being implemented by PMCG under the Good Governance Initiative (GGI) program in Georgia, which aims to enhance the overall transparency, accountability, and effectiveness of the Government of Georgia, funded by USAID.

Please kindly follow the link below for detailed information about the project:
Provide Support to Rustavi and Zugdidi Municipalities in development of FY2022-2025 Priority Documents, Medium-term Action Plans, FY2022 Program Budgets, Citizen’s Guides and Annual Execution Reports of FY2021 Budgets