Burundi’s Public Finance Management System Faces Critical Challenges
KINSHASA, Democratic Republic of Congo - As Burundi continues its transition to representative government following years of civil war, experts warn that the country’s public finance management system is still plagued by significant challenges.
Aggregate Expenditure Control: Progress Made, But Major Issues Persist
According to a recent report, despite some progress made in aggregate expenditure control over the past three years, major issues persist in strategic resource allocation and operational management. The report highlights the need for urgent efforts to build capacity in these areas to ensure effective use of resources.
Challenges Facing Public Expenditure Management System
The study notes that the country’s public expenditure management system is still struggling with:
- Outdated tools and procedures
- Lack of medium-terms expenditure forecasts
- A purely mechanical budget preparation process
- Extrabudgetary funds and accounts, contributing to weak accountability and inefficiency
Human Resource Constraints Hindering Progress
The report also cites human resource constraints in key government ministries, including the Ministry of Finance and Planning, as well as the budget offices of line ministries. These limitations have hindered efforts to improve expenditure control and financial transparency.
Recent Progress and Challenges Ahead
Notwithstanding these challenges, some progress has been made in recent years:
- Introduction of a single taxpayer identification number has improved revenue administration
- Efforts to integrate extrabudgetary funds into a consolidated budget have enhanced financial transparency
However, experts stress that more needs to be done to address the root causes of inefficiency and mismanagement. “The current state of affairs is unsustainable, and urgent action is needed to build capacity in key areas,” said a senior economist with the World Bank.
Recommendations for Improving Public Expenditure Management
Recommendations for improving public expenditure management in Burundi include:
- Strengthening institutional capacity
- Enhancing accountability mechanisms
- Promoting good governance practices
Conclusion
As the country looks to the future, it is clear that building a robust public finance management system will be crucial to achieving economic stability, growth, and equity.