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use the IFMIS through the internet which has improved accessibility. The new interface also has a clearer, more intuitive and user-friendly lay out.
Making the use of the procurement and contract management modules in IFMIS mandatory. This means that ministries have to record key stages of the procurement
process and contracts on the IFMIS before payments are made to contractors. This constrains corruption and encourages line ministries to follow the correct processes.
Improving tax administration by re-registering many tax payers with new unique tax identification numbers.
Establishing a monthly meeting to discuss and resolve problems in budget execution. The meeting is chaired by the Director General of State Finance and is attended by staff
from the MoF and the Directors of Finance from each line ministry. This meeting has contributed to higher and more efficient budget execution.
2.2.4 : Measuring Performance
The Government has recently implemented reforms to monitor and improve performance. Key reforms include the Ten Commandments and introducing KPIs.
2.2.4.1: The Ten Commandments to Improve the Performance of the State
The Government met from the 4
th
to the 6
th
of August 2014 to discuss how to identify problems and find solutions to improve the performance of the state. Based on these
discussions, participants committed to ten commandments. The full list of commandments is available on the MoF website. Three key commandments are:
1. To implement one Vision, one Plan, one Action, aligned with the SDP matrix and to commit to the KPIs as a performance measure.
2. To find out and obtain the necessary information about the existing PFM system before publicly commenting on this system.
3. The national private sector commits to work together with the Government in order to ensure the quality of projects.
These commandments should contribute to more effective Government administration.
2.2.4.2: Key Performance Indicators
The MoF has recently developed KPIs. These indicators measure progress towards important objectives for each directorate in the MoF.
The KPIs are formulated with reference to the overarching vision outlined in the MoF s
Strategic Plan. They outline and measure the work that must be done to achieve this vision and provide a practical link between high level goals and day to day activities.
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The EU and Australian Government recently showed their confidence in the KPI system for measuring performance by agreeing to provide direct budgetary support to the MoF. This
support uses the Government of Timor- Leste s pu li fi a ial a age e t system and
therefore conforms to new deal principles. Overall the KPIs are an important management tool. These indicators have linked the MoF
s vision to specific activities, strengthened budgeting and improved human resource
management. In conclusion, the MoF has implemented reforms to strengthen economic monitoring, public
financial management and performance management. These reforms should assist the development of more effective economic policies and contribute to more efficient public
spending.
2.3: Economic Overview
2.3.1: International Economy
2.3.1.1: Trends in International Growth
The global economic growth rate slowed from 3.2 to 3.0 from 2012 to 2013. Growth in the emerging market and developing economies slowed from 5.0 in 2012 to 4.7 in 2013,
while over the same period growth in the advanced economies slowed from 1.4 to 1.3. Despite less favourable financial conditions emerging market and developing economies
continue to drive global growth. The IMF forecast that the annual global growth rate will increase to 3.6 in 2014 and then
to 3.9 2015. The improved growth in the advanced economies in 2014 and 2015, at 2.2 and 2.3 respectively, is forecast to be driven by reduced fiscal tightening and favourable
monetary conditions. While the growth in the emerging market and developing economies over these years, at 4.9 and 5.3 respectively, is the result of the increased demand from
the advanced economies. However, risks to the outlook remain, in particular the increased geo-political risk and the possibility that lower than expected demand in the advanced
economies will impact on global growth.
