Compliance and Risk Management Frameworks in Solomon Islands: A Baseline Assessment
===========================================================
The Solomon Islands government has launched a comprehensive program aimed at strengthening its financial sector supervision, debt management, and public financial management. The program, which kicked off in May 2024, is expected to run through April 2025.
Objectives of the Program
- Develop a sound medium-term macroeconomic framework that incorporates GDP, inflation, commodity prices, external and monetary sectors, as well as fiscal aggregates.
- Strengthen the country’s debt management strategy by developing a comprehensive medium-term debt management plan.
- Improve public financial management by enhancing planning, allocation, execution, and monitoring of public investments.
Key Areas for Improvement
- Strengthen core tax administration functions
- Develop a compliance improvement strategy
- Enhance audit capabilities
Program Leadership and Implementation
The program will be led by a team of international experts who will work closely with local authorities to develop and implement new policies and procedures. The team will conduct regular assessments and reviews to monitor progress and ensure that the country meets its targets.
Key Deliverables
- Development and publication of a medium-term debt management strategy
- Transition to a new financial management information system (FMIS)
- Strengthening of fiscal statistics compilation and dissemination
Conclusion
The Solomon Islands government is committed to enhancing its compliance and risk management frameworks, and this ambitious program is expected to play a crucial role in achieving that goal. With the support of international experts and local authorities, the country is poised to make significant strides in strengthening its financial sector supervision, debt management, and public financial management.