Public expenditure and financial accountability | EUNewsletter

Public expenditure and financial accountability

10 July 2014
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On 3 July a Steering Committee Meeting on the “Multi-Sector Budget Support Programme 2010 & 2011” took place at the Armenian Ministry of Economy. Within the framework of the meeting the key issues concerning the budget support programme implementation were discussed. Deputy Minister of Economy Garegin Melkonyan presented the background of the programme, which led to discussions between participants on the implementation of specific conditions under the 2nd and 3rd tranches, the Status of General Conditions, and the eligibility criteria for EU budget support.

This meeting was followed on 4 July by a conference on the 2013 evaluation of Armenian state expenditure and financial accountability at the Best Western Congress Hotel. This evaluation had been implemented according to international standards and had received the “PEFA CHECK” proof of quality. Gagik Khachatryan the Armenian Minister of Finance, praised this outcome: ‘This appraisal testifies that the work to meet targets in order to align the state finance administration system with international standards is being successfully carried out’.

The evaluation was performed by the Ministry of Finance, with the support of the EU Delegation in Armenia and the German Agency for International Cooperation. This process also included executive power and legislative bodies, as well as the Control Chamber of Armenia. The evaluation was carried out according to a 31-criteria system promoted by the World Bank and the International Monetary Fund: 11 criteria registered improvement; indeed, the whole project received positive feedback. ‘The major successes we achieved were in the fields of transparency, budget implementation and IT technology empowerment. Downgraded areas of external audit, procurement and accounting systems will fall under the attention of international donor organisations and the government,’ said First Deputy Minister of Finance Pavel Safaryan.

The Head of Political Section of the EU Delegation to Armenia, Dirk Lorenz, stressed that a healthy and efficient state finance administration system was a milestone, which would promote further budgetary support to Armenia from the EU.
EU budgetary support offers a platform for dialogue with the partner country (including government, national control bodies, and civil society) on policies and on their financing, objectives and results. This is consistent with the principles of ownership, transpar¬ency and accountability. Budgetary support is provided as a “vector of change” to address five key development challenges. Those challenges include:
• promoting human rights and democratic values;
• improving financial management and fighting against corruption and fraud;
• promoting sector reforms and improving sector service delivery;
• statebuilding in fragile states;
• improving domestic revenue mobilisation and reducing dependency on aid.
There are several areas where the European Union provides Budget Support to Republic of Armenia: economic development, justice, education and rural development.

Public expenditure and financial accountability

On 3 July a Steering Committee Meeting on the “Multi-Sector Budget Support Programme 2010 & 2011” took place at the Armenian Ministry of Economy. Within the framework of the meeting the key issues concerning the budget support programme implementation were discussed. Deputy Minister of Economy Garegin Melkonyan presented the background of the programme, which led to discussions between participants on the implementation of specific conditions under the 2nd and 3rd tranches, the Status of General Conditions, and the eligibility criteria for EU budget support. This meeting was followed on 4 July by a conference on the 2013 evaluation of Armenian state expenditure and financial accountability at the Best Western Congress Hotel. This evaluation had been implemented according to international standards and had received the “PEFA CHECK” proof of quality. Gagik Khachatryan the Armenian Minister of Finance, praised this outcome: ‘This appraisal testifies that the work to meet targets in order to align the state finance administration system with international standards is being successfully carried out’. The evaluation was performed by the Ministry of Finance, with the support of the EU Delegation in Armenia and the German Agency for International Cooperation. This process also included executive power and legislative bodies, as well as the Control Chamber of Armenia. The evaluation was carried out according to a 31-criteria system promoted by the World Bank and the International Monetary Fund: 11 criteria registered improvement; indeed, the whole project received positive feedback. ‘The major successes we achieved were in the fields of transparency, budget implementation and IT technology empowerment. Downgraded areas of external audit, procurement and accounting systems will fall under the attention of international donor organisations and the government,’ said First Deputy Minister of Finance Pavel Safaryan. The Head of Political Section of the EU Delegation to Armenia, Dirk Lorenz, stressed that a healthy and efficient state finance administration system was a milestone, which would promote further budgetary support to Armenia from the EU. EU budgetary support offers a platform for dialogue with the partner country (including government, national control bodies, and civil society) on policies and on their financing, objectives and results. This is consistent with the principles of ownership, transpar¬ency and accountability. Budgetary support is provided as a “vector of change” to address five key development challenges. Those challenges include: • promoting human rights and democratic values; • improving financial management and fighting against corruption and fraud; • promoting sector reforms and improving sector service delivery; • statebuilding in fragile states; • improving domestic revenue mobilisation and reducing dependency on aid. There are several areas where the European Union provides Budget Support to Republic of Armenia: economic development, justice, education and rural development.