On Tuesday, a seminar took place in Da Nang to discuss the city’s implementation of the Public Expenditure and Financial Accountability (PEFA) Framework over the 2016 - 2020 period.  The event was jointly organised by the municipal People’s Committee (PC) and the World Bank (WB).

The seminar in progress (Photo: http://www.danang.gov.vn)

According to WB experts, the city’s public financial management (PFM) system has been operating effectively over recent years. 

Under the bilateral Analytical and Advisory Assistance (AAA) programme, WB will give technical assistance to Da Nang to enhance its public financial management capacity in the years ahead, with a focus on implementing the PEFA Framework.

PEFA uses the results of the individual indicator calculations, based on available evidence, to provide an integrated assessment of the PFM system against the main pillars of PFM performance.  They are budget reliability, transparency of public finances, management of assets and liabilities, policy-based fiscal strategy and budgeting, predictability and control in budget execution, accounting and reporting, and external scrutiny and audit.  PEFA then assesses the likely impact of the PFM performance levels on the 3 desired budgetary outcomes: aggregate fiscal discipline, strategic allocation of resources, and efficient service delivery.

Addressing the event, municipal PC Vice Chairman Tran Van Mien remarked that the city has always shown a keen interest in using useful tools to maximise its revenue sources and increase the efficiency of local budget spending.  He proudly said that Da Nang was the first locality in Viet Nam to conduct the PEFA assessment. 

Vice Chairman Mien addressing the event (Photo: http://www.danang.gov.vn)

Vice Chairman Mien asked WB to continue helping Da Nang develop its medium-term fiscal plans to effectively give capital resources in a bid to match with the city’s socio-economic development strategies and priorities. 

Furthermore, importance will be attached to making sustainable fiscal strategies and debt management policies to promote local infrastructure development, and improve the quality of public services for local residents and the efficiency of public investment projects.

The municipal Department of Finance will work closely with WB to effectively deploy the AAA cooperation programme.  A municipal Steering Board for the programme will be established very soon.