The Khyber Pakhtunkhwa Revenue Mobilization and Public Resource Management (KPMRP) program supports GoKP PFMRS, which is a well-defined program and whose strong ownership is reflected in the GoKP’s achievements in Public Finance Management (PFM). It facilitates a strategic focus on the specific results that the GoKP aims to achieve; strengthen the GoKP’s implementation systems without creating parallel systems; and ensure the sustainability of results by building Government ownership of the reform agenda.
The PFM reform strategy aims to achieve six key policy objectives:
- Ensuring policy driven planning and budgeting
- Facilitation of a comprehensive, credible, and transparent annual budget
- Improving predictability and control in budget execution
- Enabling resource mobilization and enhancing provincial own source revenues
- Improving asset and liability management
- Fostering accountability for results
The KPMRP Reforms supports selected reforms under the six policy objectives of the Public Finance Management Reform Strategy (PFMRS). The Program comprises below two major reforms: –
- Efficient revenue mobilization
This reform area supports objective D of the PFM Reform Strategy Revenue Mobilization which focuses on both tax and non-tax source of revenues. Major outcomes of the Reform are: –
- Expanding the tax base without imposing new taxes or raising tax rates, reflecting the Broad Base, low-rate principle
- Enhancing the institutional capacity for tax collection, including through compiling, and analysing taxpayer information and reducing tax evasion by specifically working with the three tax authorities (ET&NCD, KPRA, BOR)
- Facilitate taxpayer voluntary compliance by making it convenient for taxpayers to discharge their legal obligations and reduce the costs involved in tax compliance. facilitate taxpayer voluntary compliance by automating and simplifying processes and by establishing taxpayer facilitation centers.
- Mobilize non-tax revenue to increase the yield of existing sources of non-tax revenues and tap into new sources that could support a sustained growth of provincial revenues. developing asset maps of Government-owned real estate (including valuation and geo-tagging data), and by optimizing the revenue potential of such real estate.
- Improve tax administration through providing technical and managerial capacity building support to tax authorities
- Public Resource Management
Public Resource Management Reform supports policy objectives A, B, C, E and F of the GoKP PFM Reform Strategy. The reform aims to improve the management of public resources, i.e., budget, and dedicated funds such as the province’s Pension Fund and Hydel Development Fund. Main outcomes of the reforms are: –
- Improve cash management by ensuring consolidation of government cash in the Treasury Single Account, which will enable the GoKP to monitor its cash position in real time
- Increase accountability in local governments and strengthening the accountability for local government expenditures by expanding the NFMIS to Tehsil Municipal Administrations (TMAs)
- Strengthen performance orientation of departments and budgets by building on the GoKP’s preliminary efforts to introduce OBB in service delivery sectors
- Strengthening investment planning, appraisal, and ADP expenditure reporting
- Increase transparency and capacity in the management of financial assets