Background: ULGs financial management is part of the overall GOE system that falls under the mandate of MoFED who are currently preparing to adopt, throughout all government systems, the integrated financial management information system that will build on the existing IBEX system and introduce accrual account and asset management. Generally, there is substantial work to be done in many aspects of financial management and reporting. Mobilizing financial resources is a huge challenge in terms of mobilizing local revenues to meet operation and maintenance of infrastructure and services and at local, national and international levels to meet capital investments needs. These needs must take into account the backlog in infrastructure and facilities development, rapidly growing populations and achievement of middle income country status as identified by performance targets. GTP2 will involve studies and testing of the potential to mobilize many new financial resources: property taxes, community contributions, public-private partnerships, vehicle taxes, user charges, etc.
Objective: Sufficient financial resources are mobilized for urban centers – by category - to achieve 2020 and 2025 benchmarked performance targets for achievement of middle income country status.
Goals:
- Financial management (budgeting, reporting, revenue and expenditure control, cash management, accounting systems, audit, asset management, etc.) systems support good governance, citizens’ satisfaction and growth;
- Local (municipal) revenues meet existing and future demand for the financial resources urban centers need to operate and maintain infrastructure, services and facilities to the standards and targets established; and
- Sufficient investment funds are provided for development of new, upgraded and rehabilitated infrastructure by urban centers to meet the standards and targets established.
Linkages: Pillar 3, Project 3.1.1 will provide standards for delivery of services. Projects 3.1.3 and 1.1.2 will provide the benchmarked performance targets for operation and maintenance, and development of new, upgraded and rehabilitated infrastructure by urban centers. Project 3.1.3 will recommend financial management systems to be adopted by cities.