Nepal PEFA

PEFA Assessment was carried out in 2008, to assess the performance of the country’s PFM system in comparison with internationally accepted benchmarks, with the initiation of GoN and supported by the World Bank to provide a basis for objectively assessing the country’s PFM system. The PEFA methodology examined the soundness of the PFM framework by rating 31 indicators (three related to donor practices) based on its Assessment Guidelines. The scope of the assessment covered fiscal and debt management, budget formulation, budget execution, procurement, accounting, reporting, auditing, transparency, internal control and external scrutiny. This report is available in the PEFA Secretariat. Following the PEFA Assessment in 2008.The GoN formulated a Public Financial Management Reform Program (PFMRP) Strategy Phase I (2010-2013), with the objective of adopting a holistic government-wide approach to PFM reforms encompassing both the institutional and technical aspects. This is intended to be a gradual and long-term process that requires strong political will and commitment that contributes to reducing fiduciary risks as well as improve transparency and accountability of public financial management. It provides a framework in which all related reform initiatives can be incorporated under a single ‘umbrella’ in which the development partners can provide their funding on a ‘joint’ and ‘programmatic’ basis.