Public financial management in Zambia is both fragmented and outdated, and fails to capture internationally accepted best practice, the International Monetary Fund has said.
In a note issued on September 4, the IMF acknowledged that Zambia’s government had prioritised a revision of its existing legal framework for PFM. This will allow it to introduce a number of improvements, including medium-term planning and budgeting and the adoption of International Public Sector Accounting Standards. Electronic transaction processing and the introduction of a Treasury Single Account are also planned.
“Furthermore, a revision of the legal framework would facilitate the strengthening of existing institutions, in particular the powers of the National Assembly to scrutinise the government’s medium-term fiscal and budget strategy and to oversee the execution of the budget, and the independence of the auditor general,” the IMF said.
“Consideration could also be given to elevating the position of the accountant general to permanent secretary level, in line with several other African countries.”
managing editor of Public Finance International