Chapter four: Economic governance and management 443. The CSAR notes that a decision has been taken to replace GOLFIS with a new Integrated Financial Management Information System (IFMIS) for the Treasury. IFMIS is designed to provide timely information to managers more cost-effectively. IFMIS is critical to the stated aim of decentralising some financial functions to local authorities, as it can facilitate effective monitoring and oversight functions by the MoFDP. A major challenge here is the timely and proper implementation of the reforms relating to the information management system used by the Treasury and in government as a whole. 444. The challenges for implementing MTEF, which adopts departmental strategic plans as control mechanisms and tools for budgeting and expenditure monitoring, include: 445. • Maintaining aggregate fiscal discipline (i.e., keeping total public spending within the bounds established by the government of Lesotho’s ability to raise revenue and service debt without creating macroeconomic imbalances). • Allocating public resources between sectors/ministries and between programmes within sector/ministries to achieve national growth and poverty reduction goals. • Cost-effective delivery of services. • Effective coordination between the National Planning Board, the planning units of line ministries and District Development Coordinating Committees (DDCCs). Recurrent expenditure accounted for a high proportion of government budget total expenditure in 2008 (80.3 per cent). More important, about 50 per cent of capital expenditure is financed from external sources – loans and grants (see figure 4.4). This clearly indicates the weak role of the budget in enhancing growth and future development. It is also an indication of the inability of Lesotho to align its budget and to commit itself fully to a clear long-term growth strategy. Figure 4.4: Sources of finance for capital expenditure, 2007 (per cent of total) Source: IMF (2008). Kingdom of Lesotho: Selected Issues and Statistical Appendix. 123