Economic Governance and Management Chapter 4 Chapter 4 terms of the Code of Good Practice on Fiscal Transparency; and (iii) transparency in monetary and financial policies. 402. 403. 404. 405. 170 With regard to the transparency of data, the CRM was informed that Mauritius had subscribed to the SDDS and the GDDS, approved by the IMF, in 2000. In analysing Mauritius’s practices in these areas, the IMF acknowledges that the production of data generally respects the concepts, methodology and classification system of the IMF General Financial Statistics Manual. Their publication also meets the IMF requirements for the definitions and analytical framework. However, a few irregularities were observed about compliance with the rules. These should be corrected within the framework of an improvement programme supported by the IMF. The PEFA Report acknowledges that the dissemination of statistical data on public finance via government websites, which are accessible to all users, is transparent and efficient. The CRM commends the government for the quality and availability of the statistical data. It enables various stakeholders to assess the effect of economic policies and to make their own decisions. With regard to fiscal and budgetary transparency, the government conducted, with the help of the EU, a study called Assessment of the Performance of Public Financial Management in June 2007. It was based on the PEFA methodology recommended by the IMF and the World Bank. It was a detailed study of public financial management mechanisms, processes and institutions. The PEFA Report noted significant weaknesses in public financial management. They show lack of respect for international standards and good practice. The study made some recommendations about the reforms needed to improve the system of budgetary planning and execution. Mauritius consequently launched new results-based planning and budgeting tools. These are the Medium-Term Expenditure Framework (MTEF) and the Programme Budget (PB). It also introduced institutional reforms to strengthen the management of the public procurement system, internal controls and external audits of government operations. However, the CRM notes that there is no fiscal and budgetary transparency yet, despite the recommended measures. Most of the measures are not sufficiently operational to allow the CRM to assess their effects on improving performance and transparency in managing the budget. Similarly, the government’s commitment to promoting transparent management in areas like running and restructuring Economic Governance and Management parastatals has not yet been realised. Lastly, Parliament is weak in budgetary analysis and monitoring. The PEFA Report emphasises this and discussions between the CRM and stakeholders confirm it. The CRM can therefore not guarantee compliance with international standards and practices for budget transparency. Guidelines for public debt management and sustainability 406. All the guidelines defined by the IMF and the World Bank, and developed at the request of the International Monetary and Financial Committee (IMFC), aim at improving the quality of managing public debt and at reducing the country’s vulnerability to internal and external financial shocks. The CRM was informed of the measures that were introduced to comply with these guidelines. The CRM therefore congratulates the government on its commitment to managing its public debt and, particularly, its foreign debt. 407. The Ministry of Finance and Economic Empowerment (MOFEE) created the Public Debt Management Unit in 2004 to monitor and analyse the risks associated with the trends and effects of public debt. Using the framework of the 2006 budget, it adopted administrative measures aimed at improving the output of external debt and stabilising the public debt to GDP ratio. 408. Furthermore, the Public Debt Management Act was amended in 2008 to consolidate and modernise the mechanisms for managing public debt. It allows the minister of finance and economic empowerment to develop strategies and policies for managing public debt. This framework led to a national policy on public indebtedness and public debt management being adopted in January 2008 to help the country capitalise on the results achieved. 409. At the institutional level, a Public Debt Management Committee has been established. It comprises representatives of the Mauritius central bank (BoM), the Accountant General’s Department and the Debt Management Unit of the MOFEE. The committee meets regularly to analyse the government’s cash balance and borrowing needs. 410. Mauritius has also adopted a computerised system in order to acquire adequate tools to manage debt efficiently and transparently. This is the Commonwealth Secretariat Debt Recording Management System (CS-DRMS), designed to manage the external public debt of the Commonwealth. 171