Project Summary:

The project will have high complementarity with other interventions aiming at strengthening the public finance management systems and processes in the country, will build on the foundation of the results achieved by the previous initiatives supported by UNDP-Slovak Trust Fund, and will be focused on two areas: (1) Assessment of financial flows and budgetary spending and (2) Strengthening budgetary process.

Objectives:

• Analyse the spending review pilot implemented in two line-ministries and develop the methodology to apply public spending reviews for preparing the budgets in two new priority sectors;
• Implement the Development Finance Assessment (DFA) methodology across the public sector;
• Elaborate a roadmap for the implementation of the Integrated National Financing Framework (INFF) based on findings and recommendations of the DFA and the spending reviews to inform future financing solutions;
• Based on a Training Needs Assessment elaborate and support the implementation of a module-based and practice-oriented Training Programme in Public Finance Management;
• Provide expertise to the selected Line Ministry for piloting the INFF;
• Offer expertise in carrying out the Fiscal Impact Assessment of the selected Structural Reforms;
• Support the Government to address energy and food poverty and develop a long-term resilience vision.

Expected results:

• The Development Finance Assessment (DFA) methodology implemented across the public sector;
• Spending review methodology developed and implemented in the selected Line Ministries;
• A Roadmap for the implementation of the Integrated National Financing Framework (INFF) based on findings and recommendations of the DFA and the spending reviews to inform effective financing solutions elaborated;
• Module-based and practice-oriented Training Programme in Public Finance Management developed and implemented;
• Expertise provided in piloting of the INFF in selected sectors;
• Fiscal Impact Assessment of the selected Structural Reforms carried out;
• Support to the Presidential Office on the development and consultation of the national resilience vision for Moldova; support to the Government in addressing energy and food poverty in Moldova.

Accomplishments:

• Capacity of 65 representatives of the Ministry of Finance, State Chancellery, line ministries, UNDP and other development partners in the application of the Development Finance Assessment methodology developed;
• Spending review methodology adjusted as a combination of the two methodological approaches applied in the spending reviews carried out in two Ministries in 2018 – 2020 and developed in a Methodological Guidance for the spending review to be implemented in the selected line ministries;
• The Development Finance Assessment (DFA) methodology implemented across the public sector;
• The Energy Vulnerability Fund was established for the Government to provide targeted and on-bill compensations to all energy vulnerable households in the cold period of the year.