Bosnia and Herzegovina : A Fiduciary Update on Public Financial Management
Bosnia and Herzegovina (BH) hopes to successfully conclude the Stabilization and Association Agreement (SAA) with the European Union (EU) by the end of 2006, upgrading BH as a potential candidate for EU membership. Entry into the EU will increasin...
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| Format: | Other Financial Sector Study |
| Language: | English |
| Published: |
Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/02/14196531/bosnia-herzegovina-fiduciary-update-public-financial-management http://hdl.handle.net/10986/7936 |
| Summary: | Bosnia and Herzegovina (BH) hopes to
successfully conclude the Stabilization and Association
Agreement (SAA) with the European Union (EU) by the end of
2006, upgrading BH as a potential candidate for EU
membership. Entry into the EU will increasingly shape the
future reform program of BH in several areas, including
public financial management. Strategic planning has
improved, and ownership is more evident. A key development
was the country-wide Poverty Reduction Strategy Paper
(PRSP), known as the Medium Term Development Strategy
(MTDS), which was prepared jointly by the three governments.
These efforts have helped to familiarize the governments
with policy-based frameworks in a multiannual context, yet
the link between policy and budget is still very weak.
Externally financed technical assistance has helped to
ameliorate the lack of capacity within the finance
ministries. It is too early to say whether the medium-term
expenditure framework (MTEF) will be sustained without
continuing external support although there are indications
that it is becoming the starting point for the preparation
of annual budget rather than remaining as a standalone
document. The overall financial management risk to Bank
development policy lending (DPL) funds is moderate. Ample
safeguards exist in the central bank to record and track
foreign currency funds received under the Bank's DPL
program. However, future DPL operations should include
measures to develop public financial management capacity and
to address the weaknesses and risks, particularly in the
management of budgetary resources identified in this report.
In doing so, it is important that conditions and triggers
focus on results rather than inputs/processes while clearly
stating the expected outcomes. |
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