Overall Objective

The overall objective of the PFM Sector Reform Contract is to contribute to sustainable growth and maintained macro-economic and fiscal stability. The specific objective is to strengthen the Albanian PFM system for an efficient process of budget planning, execution and oversight with a view to reinforce fiscal discipline, streamline the allocation of resources according to policy objectives and upgrade public services delivery.

Activities

• Transfer of up to EUR 40 million on the basis of meeting general eligibility criteria and the achievement of the targets
• Strengthened political and policy dialogue with the Government of Albania on the areas reflected in the objectives of the PFM Sector Reform Contract
• A continued effort to reinforce Albania’s capacities in the area of Public Financial Management in the context of complementary support projects
• Strengthened dialogue with other donors active in the sector to coordinate and further align activities
• Efficient reporting on reforms related to Public Financial Management and relying on the Government’s structure for monitoring the implementation of the reforms
• Regular monitoring of budget support eligibility criteria

Expected Results

• Improved legal and fiscal framework
• Improved planning and budgeting of public expenditure
• Enhanced expenditure control
• Improved tax administration
• Strengthened public procurement review system
• Improved transparency
• Fight against corruption, fraud, conflict of interest
• Strengthened external audit