Launched in 2001, this project seeks to strengthen the capacity of the Palestinian Authority Ministry of Finance to monitor and analyse current and future debt service obligations, as well as to integrate strategic planning and budgetary processes.
With funds from Norway, project activities involved advisory and training services to provide the Palestinian Authority with the required capacities - including structures, computerized systems and coordination mechanisms - for effective debt and fiscal management.
Achievements to date:
A core team of trained staff within the Ministry of Finance and related Palestinian Authority institutions on strategic issues in the areas of fiscal policy, debt management, and debt and fiscal statistics.
Proposed organizational structure for revamping debt management structures, procedures and processes within the Ministry of Finance.
- Contribution to the Palestinian Authority´s Palestinian Reform and Development Plan (PRDP) by applying UNCTAD´s Integrated Simulation Framework (ISF) to inform the design of the Palestinian Medium-Term Expenditure Framework (MTEF). MTEF is a rolling multi-year macroeconomic fiscal framework for guiding the Palestinian Authority´s efforts to link strategic long-term plans to the annual budgetary processes and affect expenditure prioritization.
The DMFAS system was well received by Ministry of Finance staff, and the proposed MTEF proved influential in informing the Palestinian Authority´s integrated medium-term planning and budgeting processes, as well as the PRDP for the period 2008-2010. The secretariat was also requested by the Ministry of Finance to provide follow-up training to enable the Ministry to use the system for strategic analysis and forecasting.
However, implementation was suspended in 2007, as donors were hesitant to finance the project following the 2006 Palestinian Legislative Council elections. Given the importance attached by the Palestinian Authority to this system for supporting its renewed reform and institution-building efforts, UNCTAD has intensified its efforts to mobilize resources for resuming project activities.