reduction. Such a strategy should allow the private sector, especially small and medium-sized enterprises (SMEs), to play a significant role. Present measures to increase investments in social and physical infrastructure should also be reinforced. xlii. An important outcome of such a strategy will be increased mobilisation of domestic resources, thereby reducing dependence on external aid. The government is conscious of the importance of this outcome. In this regard, a number of reforms have been introduced to reduce the burden of paying taxes, and to broaden the tax base. Special note should be taken of the establishment of the Mozambican Tax Authority (ATM) and the measures to make it more efficient, effective and transparent. However, while progress has been made in meeting the target of increasing revenue collection by 0.5 per cent annually, this target was not met in 2008. In addition, problems of transparency and perceptions of inequities continue to plague the tax system. xliii. On the whole, progress has been made in enhancing public finance management. With this in this mind, the government has embarked on a programme to make greater use of information technology, as demonstrated by the introduction of the e-SISTAFE system. Public finance management has also been strengthened through the introduction of the Medium-Term Fiscal Scenario (CFMP), the shift from incremental to programme budgeting, and greater coordination of the economic planning process at the level of central government and among the various levels of government. Efforts are also being made to ensure synergy and coherence between the various economic plans and basic economic strategies, notably the Poverty Reduction Strategy and the MediumTerm Economic Plan. xliv. A major challenge facing the government and society of Mozambique is how to ensure greater transparency and more effective oversight in public finance management. The establishment of the Administrative Court represents a step in the right direction, but the effectiveness of this body needs to be strengthened. In particular, the ability of Parliament to hold the Executive accountable in public financing management needs to be reinforced considerably. xlv. Not much progress has been made in realising the government’s objective of decentralising the management of public finances to the provincial and district authorities. Questions have been raised as to how strongly the government is committed to this goal. Whatever the case, as with so many other good policy declarations and intentions in Mozambique, a major challenge in this regard is the inability of local authorities to take full ownership of their economic development. xlvi. Mozambique has made determined efforts to broaden public participation in the formulation of economic policies. This participation takes place largely 10 A P R M COU N T RY R EV IEW R EP ORT NO. 11