5: Policy Reform Matrix Joint Policy Reform Matrix FY2014-15 Agreed Reform Actions for completion Responsibility/ Indicative Reform Actions for Responsibility/ implementing – – August 31st 2013 (stakeholders in implementing partners completion August 31st 2014 partner brackets) Strengthening Public Financial Management The Ministry of Finance will reflect new AusAID and ADB TA Ministry of Finance will progress GoT with donor support (ADB, program structures for major ministries in supporting corporate key reforms identified in the Public WB & AusAID) the FY2013/14 budget to improve planning and medium-term Finance Management Reform Plan alignment between expenditure and budgeting programs. to be agreed by Cabinet in policy priorities. (ADB, WB & AusAID) Ongoing TA provided to and in the Procurement assist in preparing budget Strategy documents as necessary. Ongoing WB assistance provided to Government restructure. Cabinet will approve a Procurement Two AusAID-funded Strategy outlining steps for strengthening International Procurement of procurement processes based on the Specialists envisaged. recent procurement review. (AusAID) Strengthening fiscal policy Cabinet will approve submission to PFTAC TA provided to Cabinet will agree to an GoT/ Cabinet with donor Parliament of legislation to create a prepare Cabinet papers, exemptions policy clearly stating support (ADB, WB & AusAID) presumptive tax regime for SMEs, to consultation papers, and criteria to be applied when reduce administrative burden on Ministry legislation for both reforms. considering requests for tax of Revenue and encourage formalization. exemptions, and approve (ADB, WB & AusAID) Ongoing PFTAC TA provided immediate changes to the existing to Ministry of Revenue on exemptions regime to ensure general strategy and consistency of tax exemptions with Cabinet will approve submission to priorities. Government policy priorities, with a parliament of legislation establishing a view to reducing the overall fiscal natural resource tax regime to ensure Ongoing TA to be considered costs of exemptions. equitable sharing of benefits from by ADB, AusAID, World prospective extractive industry activities. Bank. (ADB, WB & AusAID)
5: Policy Reform Matrix Joint Policy Reform Matrix FY2014-15 Agreed Reform Actions – for completion August 31st 2013 (stakeholders in brackets) Responsibility/ implementing partners Indicative Reform Actions – for completion August 31st 2014 Responsibility/ implementing partner Strengthening Public Financial Management The Ministry of Finance will reflect new program structures for major ministries in the FY2013/14 budget to improve alignment between expenditure and policy priorities. (ADB, WB & AusAID) Cabinet will approve a Procurement Strategy outlining steps for strengthening of procurement processes based on the recent procurement review. (AusAID) AusAID and ADB TA supporting corporate planning and medium-term budgeting programs. Ongoing TA provided to assist in preparing budget documents as necessary. Ongoing WB assistance provided to Government restructure. Two AusAID-funded International Procurement Specialists envisaged. Ministry of Finance will progress key reforms identified in the Public Finance Management Reform Plan to be agreed by Cabinet in and in the Procurement Strategy GoT with donor support (ADB, WB & AusAID) Strengthening fiscal policy Cabinet will approve submission to Parliament of legislation to create a presumptive tax regime for SMEs, to reduce administrative burden on Ministry of Revenue and encourage formalization. (ADB, WB & AusAID) Cabinet will approve submission to parliament of legislation establishing a natural resource tax regime to ensure equitable sharing of benefits from prospective extractive industry activities. (ADB, WB & AusAID) PFTAC TA provided to prepare Cabinet papers, consultation papers, and legislation for both reforms. Ongoing PFTAC TA provided to Ministry of Revenue on general strategy and priorities. Ongoing TA to be considered by ADB, AusAID, World Bank. Cabinet will agree to an exemptions policy clearly stating criteria to be applied when considering requests for tax exemptions, and approve immediate changes to the existing exemptions regime to ensure consistency of tax exemptions with Government policy priorities, with a view to reducing the overall fiscal costs of exemptions. GoT/ Cabinet with donor support (ADB, WB & AusAID)
tonga-economic-public-sector-governance-delivery-strategy.docx