Macroeconomic Support – Poverty Reduction Budget Support and strengthening Good Financial GovernanceEnlarge image euro bills (© dpa/pa)
Since 2007 Germany has been providing Poverty Reduction Budget Support (PRBS) to the Republic of Zambia in order to support the Zambian Government (GRZ) in the implementation of its National Development Plans and to assist GRZ in its endeavours to fight poverty.
Besides its important financing function the instrument of budget support offers the important opportunity to conduct a continuous high level and development oriented policy dialogue with GRZ. An independent recent evaluation of the budget support programme in Zambia confirms the instrument’s significant contribution towards Zambia’s achievement of the Millenium Development Goals (MDGs) as well as its positive impact on Good Governance and Public Financial Management. Currently the PRBS-group consists 6 other Cooperating Partners besides Germany: World Bank, African Development Bank, European Union, United Kingdom, Norway, and Finland.
With the Good Financial Governance (GFG) Programme the Ministry of Finance (MoF) is supported in strengthening Public Financial Management (PFM). Germany supports increasing transparency, accountability and development orientation in budget preparation, revenue collection as well as the use of public funding in Zambia through extended technical and financial cooperation.
Advice and support are provided to several departments under the MoF in order to raise government’s capacities and efficiency in PFM: the Budget Office, M&E Department, Planning Department, Economic Management Department and the Internal Audit Department. In order to enhance the capacity to collect public revenues fairly and efficiently through improved service delivery, the Zambia Revenue Authority (ZRA) is getting support since 2011.
The objective of the GFG programme is to increase transparency, accountability and development orientation in the collection and use of public finances in Zambia. From 2013 onwards, Germany will provide additional funding to support the implementation of the Zambian PFM strategy.