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Budget Transparency in the Kingdom of Lesotho: The Roles of PFM Reform and Public Outreach,[object Object],ICGFM 25th Annual International Conference,[object Object],Miami, Florida USA,[object Object],May 15-20, 2011,[object Object]
Overview,[object Object],[object Object]
PFM Reform – Budgeting Processes
PFM Reform – Integrated Financial System
Promoting Transparency with Enhanced Budget Information
Lessons Learned and Next Steps2,[object Object]
Country BackgroundMs. Sheryl Kelly,[object Object],3,[object Object]
Country Background,[object Object],[object Object]
An enclave within South Africa known as “The Mountain Kingdom”
Lowest elevation is 4,600 feet
About the size of Belgium
Population =           1.9 million4,[object Object]
Country Background,[object Object],[object Object]
Constitutional monarchy
Established as British protectorate in 1868
Gained independence in 1966
Bicameral Parliament, with a 33-member Senate and 120-member National Assembly
Cabinet is comprised of Prime Minister and Ministers/Assistant Ministers from the 19 ministries5,[object Object]
Country Background,[object Object],[object Object]
Manufacturing (textiles and clothing)
Royalties from water transfers to South Africa
Diamond mining
Agriculture
Miners’ remittances
Construction
Southern African Customs Union (SACU) revenues6,[object Object]
Country Background,[object Object],[object Object]
27 Ministries and Offices
FY 2010/11 Recurrent Budget = M7.4 billion (US$1 billion):
22% to Ministry of Education and Training
11% to Ministry of Health and Social Welfare
11% to Ministry of Finance and Development Planning (student scholarships)7,[object Object]
Country Background,[object Object],[object Object]
FY 2010/11 Capital Budget = M3.6 billion (US$ 491 million)
About half is government-funded:
11% to Ministry of Public Works and Transport
8% to Ministry of Local Government and Chieftainship
7% to Ministry of Health and Social Welfare8,[object Object]
Country Background,[object Object],[object Object]
PFM Programme commenced in January 2005
Funded by several donors, including the European Union (EU), UK Department for International Development (DFID), Irish Aid, World Bank, and African Development Bank
Seven Areas of Focus:Strengthened macroeconomic analysis and forecasting linked to fiscal policy, budget performance and monitoring,[object Object],Integrated planning and budgeting systems,[object Object],Modern procurement systems,[object Object],9,[object Object]
Country Background,[object Object],[object Object]
Seven Areas of Focus:Modern integrated accounting, revenue and expenditure management systems,[object Object],Strong independent oversight bodies and mechanisms,[object Object],Information to facilitate effective Cabinet participation in the budget process,[object Object],Enhanced capacity within Ministry of Finance and Development Planning (MFDP)  to support and sustain reform,[object Object],More on those areas related to budget processes ,[object Object],and systems…,[object Object],10,[object Object]
PFM Reform – Budgeting ProcessesMs. ‘Mapalo Grace Moejane,[object Object],11,[object Object]
PFM Reform – Budget Processes,[object Object],[object Object]
MTEF:
General Overview
Medium Term Fiscal Framework (MTFF)
Budget Framework Papers
Programme Budgeting
Successes to Date
Issues Currently Being Addressed12,[object Object]

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