New wing under Finance Division to start operation next month
FE Report | Tuesday, 15 July 2008
A new organisational set-up, the Macro Fiscal Wing, under the finance ministry will start operation from next month to assist the ministry with the country's macro-economic forecasts and analysis, ministry officials said Tuesday.
"Establishment of the new wing in the Finance Division is in the final stage," said the finance ministry website.
Setting up of the new wing is a part of the ongoing reform programme in the Finance Division for capacity building on macro-modeling and analysing.
Preparation of Medium Term Budget Outlook (MTBO) and Medium Term Budget Strategy (MBS) are progressing fast as part of reform programme, it said.
The macro-fiscal wing will be manned by local experts while an expatriate adviser will be appointed to provide assistance, said a senior official.
The official said the finance ministry has already made substantial progress to appoint the adviser after consultation with the International Monetary Fund (IMF).
The IMF as per a deal with the government on macro-fiscal projection will provide the expert who would visit the country from time to time to render technical assistance to the local experts, he said.
Among the local experts, a joint secretary will be in charge of the wing. Earlier, the finance ministry proposed to merge the macro-fiscal wing with the newly created tax policy wing.
It viewed that a single unit instead of separate ones will deliver maximum output for bringing dynamism in the budget implementation process.
But the finance adviser turned down the merger proposal after the revenue board officials showed negative attitude to the proposal.
The finance ministry in absence of a macro-fiscal wing relies mainly on the central bank to assess the country's macro economic situation, said another official. The government will now have two units to work on the country's macro economy which will benefit the policy and decision makers, he said.
"Establishment of the new wing in the Finance Division is in the final stage," said the finance ministry website.
Setting up of the new wing is a part of the ongoing reform programme in the Finance Division for capacity building on macro-modeling and analysing.
Preparation of Medium Term Budget Outlook (MTBO) and Medium Term Budget Strategy (MBS) are progressing fast as part of reform programme, it said.
The macro-fiscal wing will be manned by local experts while an expatriate adviser will be appointed to provide assistance, said a senior official.
The official said the finance ministry has already made substantial progress to appoint the adviser after consultation with the International Monetary Fund (IMF).
The IMF as per a deal with the government on macro-fiscal projection will provide the expert who would visit the country from time to time to render technical assistance to the local experts, he said.
Among the local experts, a joint secretary will be in charge of the wing. Earlier, the finance ministry proposed to merge the macro-fiscal wing with the newly created tax policy wing.
It viewed that a single unit instead of separate ones will deliver maximum output for bringing dynamism in the budget implementation process.
But the finance adviser turned down the merger proposal after the revenue board officials showed negative attitude to the proposal.
The finance ministry in absence of a macro-fiscal wing relies mainly on the central bank to assess the country's macro economic situation, said another official. The government will now have two units to work on the country's macro economy which will benefit the policy and decision makers, he said.