1. The Fiscal Management Reform Program (FMRP)
is a sector development program comprising three loans, which
were signed by GOSL with ADB on 20th December 2004. It guaranteed
financial assistance to the tune of US$ 70 million in total for
implementation of a comprehensive Fiscal Management Reforms Program
((FMRP) embracing the three revenue departments; IRD, Customs
& Excise Depts. and such agencies under the Ministry of Finance
& Planning as FPD, NPD, NBD, PED, TOD & SAD.
2.
The details of the three (3) loans and their objectives in brief
are as follows:-
(a)
Program or Policy Loan entitled 'Fiscal Management Reform Program'
(FMRP) of US$ 45 million
FMRP supports the strengthening of public finances by improving
public resource and expenditure management and control systems,
promoting fiscal discipline and fiscal co-ordination, improving
budget frame work and improving effectiveness of tax and customs
administration. FMRP will help create an enabling environment
to foster mobilizing of tax revenues, improve effectiveness
of public expenditures and ultimately place public finances
on a sustainable footing.
(b)
Project Loan entitled 'Strengthening of Fiscal Management Institution
Project' (SFMIP) of US$ 10 million
The principal objective of SFMIP is to provide capacity building
support for institutional development of Fiscal Management Institutions
thereby promoting development of skills and know-how through
the contracting of external expertise and transfer of knowledge
through training and workshops. The project consists of consulting
services and training in the following areas; Revenue Administration,
Fiscal Management, Human Resource Development, and training
in all three revenue departments and Treasury departments. In
addition there will be short-term consultancies for special
areas.
(c)
Project Loan entitled Modernization of Revenue Administration
Project (MRAP) of US$ 15 million
The objective of MRAP is to support institutional strengthening
focusing primarily on the procurement of equipment for the modernization
of revenue administration to ensure prompt and smooth transformation
of revenue administration. The project consists of the following,
among others, provision of equipment including computer hardware
and software for modern revenue administration, applications
to support a comprehensive integrated electronically enabled
revenue administration Management System`
3.
Project office is set up on the 14th floor of Inland Revenue Department
(IRD) building and is headed by the Program Director who is responsible
for implementing all project related implementation across the
spectrum of FMRP activities including non-revenue fiscal management
issues. In addition to being head of PIU, Program Director would
function as Secretary to Inter-agency Implementation and Coordination
Committee (IICC).
4.
The program and the two projects collectively referred to as FMRP
are expected to be completed by 31st December 2007.