Public Sector Governance and Accountability Series: Budgeting and ...

Strengthening Public Expenditure Management in Africa 401
Set in motion a ministry-by-ministry review of the historical accuracy of
their revenue forecasts.
Ensure that the database of taxpayers is accurate or, if not, conduct a census
to establish an accurate database and, on that basis, estimate potential
revenue and compare that estimate with actual revenue.
Introduce a single identifying number for taxpayers.
Subsequently, systematic attention can be given to improving fiscal
marksmanship:
Improve the methodology of revenue forecasting, tax by tax and nontax
revenue by nontax revenue.
Examine realistic possibilities for automation and more timely communications
through information and communication technology.
Establish appropriate institutional rewards for greater accuracy in
revenue forecasting.
Budget coverage and budget systems
As repeatedly noted, covering revenue and expenditure proposals in the
budget presented to the legislature is fundamental. In budget coverage, basic
priorities are as follows:
A reasonably comprehensive coverage of the budget
Inclusion in the budget documentation of all revenues and expenditures
of extrabudgetary funds, in gross terms
An expenditure classification system that fits the needs of both policy
analysis and management and covers all government expenditures,
including those of extrabudgetary funds
Assessment and disclosure of all policy decisions that have an immediate
fiscal effect, such as tax expenditures and quasi-fiscal expenditures, and
of those entailing fiscal risk, such as loan guarantees and other contingent
liabilities.
Subsequently, key reforms can include the following:
Put in place instruments for better assessment of actual liabilities,
contingent liabilities, and policy commitments with major expenditure
implications—in the context of some form of multiyear expenditure programming
(discussed in the next subsection).
Review options for the gradual elimination of unjustified extrabudgetary
funds and incorporation of their activities into the normal budgetary