Iraq Public Expenditure and Institutional Assessment, Volume 2

Abstract

The public expenditure and institutional
 assessment (PEIA) were motivated by a number of factors.
 First, both the Government of Iraq (GoI) and its
 international development partners have recognized the
 critical importance of sound management of Iraq's
 substantial public financial resources. Both parties support
 the reform and modernization of public financial management
 (PFM), as articulated in the International Compact for Iraq
 (ICI). Secondly, international experience demonstrates the
 importance of establishing a baseline against which progress
 in PFM over time can be measured. This implies the need for
 an assessment which provides the information necessary to
 measure the performance of a country's PFM system.
 Thirdly, the devastating circumstances in Iraq during the
 past 5 years have made the institutional arrangements for
 PFM the subject of considerable uncertainty. The PEIA can
 help to shape and prioritize the necessary development
 program. The report is organized in two main parts. Volume
 one contains a summary of the main issues to emerge from the
 public expenditure and financial accountability (PEFA)
 assessment and a discussion of a number of specific PFM
 issues of current importance to Iraq, including: capital
 investment budgeting (CIB), oil revenue management, the Iraq
 financial management information system (IFMIS), public
 accounting and accountability, and payroll management.
 Volume two contains a detailed technical analysis behind the
 PEFA assessment.