Launch of the Public Finance Management Handbook

Remarks from H.E. Alessandro Mariani,

Ambassador of the European Union

Amphitheatre Parliament building

1^st November 2017

Honourable Felix Mutati, MP, Minister of Finance 

Honourable Speaker of the National Assembly of Zambia

Honourable Second Deputy Speaker of the National Assembly of Zambia

Honourable Clerk of the National Assembly

Honourable Members of Parliament

Secretary to the Treasury

Staff from the National Assembly of Zambia

Members of the Press

Distinguished Ladies and Gentlemen

I am delighted to join all of you for the official launch of the Public Finance Management Handbook which was financially sponsored by the European Union as part of the project in "Support to the National Assembly of Zambia”.

The effective, efficient and transparent use of public resources (i.e.: sound public finance management) are crucial elements for promoting sustainable growth and development in all countries in the world and Zambia is no exception.

The main objective of the European Union's support to the National Assembly of Zambia is to strengthen parliamentary control and oversight of the country's budget, both during its preparation as well as its implementation and ex-post analysis.

Zambian citizens, through their Members of Parliament, have indeed the right to know how the taxes they pay are being allocated and invested by the Government. The European Union with its support to the National Assembly of Zambia intends to enhance the capacity of the NAZ so that it can fulfil this specific role in the most effective possible way.

The active engagement of the National Assembly in the budget process is essential to promote good governance, fiscal transparency and accountability. Members of Parliament should be able to do more than just accept or reject the budget; they should be in a position to analyse, appreciate and question the macro-economic framework, the sectoral allocations, the consistency between the allocations and related policy issues at sectoral level, and the intended results having the possibility to focus not just on the inputs but on the expected outcomes and results. Members of Parliament should also be able to analyse the audit reports and the remedial measures highlighted for implementation from the government.   

As the Honourable Minister of Finance indicated in the Budget Speech presented on 29^th September, the Zambian Economic Recovery Programme calls for increased levels of accountability and transparency. It calls for a credible budget minimising variations (e.g.: unplanned expenditures), ensuring a stable economic framework conducive to private sector investments and sustainable growth, and policy consistency.

The National Assembly has also a fundamental role to play in contributing to a more sustainable management of the public debt, which has recently been rising at an unsustainable pace, thus reducing the vulnerability of the economy and mitigating the crowding out of the private sector. In this respect, the European Union welcomes the intention of the Minister of Finance to submit a Loans and Guarantees Act aimed at strengthening Parliament's oversight of public borrowing.  Ideally all future public loans and guarantees, with no exception, should be presented to Parliament.

The Public Finance Management Handbook has been developed to contribute to the sensitisation efforts on PFM and is addressed to all MPs. It provides a comprehensive overview on public finance management and offers guidance on Parliament’s role and responsibilities throughout the budget cycle from formulation to scrutiny and approval, implementation, and post budget implementation.

The Handbook was written by 16 local experts on public financial management, including former Government officials, Ministry of Finance, the National Audit Office, non-governmental think-tanks and representatives from academia. Substantial inputs have also been provided by the Parliamentary Budget Office. It is therefore a joint effort through a highly participatory process that started in 2015.

It is my sincere hope that the project funded by the European Union will continue contributing to the enhancement of the effectiveness of Parliamentary oversight and I am confident that this Handbook may constitute an important tool for the Honourable MPs.