Ministry Announces New Strategic Plan to Strengthen Public Financial Management Reforms

Addis Ababa, January 18, 2020 (FBC) – Ministry of Finance has announced a new strategic plan to strengthen public financial management reforms thereby increase Integrated Financial Management Information System (IFMIS) to 760 by 2025.

The announcement has been made during a presentation of IFMIS strategic plan for the period 2021-2025 to key stakeholders.

The Ministry is working to increase roll out of automated program that supports the management of public sector budgetary, financial, and accounting operations to enhance public financial management.

Presenting key result areas to be achieved in the second strategic period, Nega Mengistu, IFMIS Project Manager of the Ministry of Finance said the government is working to transform Public Finance Management (PFM) efficiency, transparency and accountability as well as build its overall capacity to increase institutional and operation coverage of the program to reach an additional 760 sites in various parts of the country.

The strategic plan, which is in line with the various financial management reforms carried out by the ministry, emphasized how IFMIS is contributing to Ethiopia’s macroeconomic stability, enacting public service delivery, improving accountability across budgeting, revenue collection, and expenditure management.

Nega also explained that during the first strategic period 2016-2020 IFMIS was rolled out to 156 sites, training was conducted for 14,773 end-users, sufficient internal capacity was built to support the application.

As part of the achievement of the first period he also said that 84% of the Federal Government’s budget is currently being managed by IFMIS. IFMIS has also managed over 25+ million transactions during the first strategic period.

The strategic plan shows ministry will enhance the integration of IFMIS with other information systems such as Debt Management and Financial Analysis System (DMFAS), NBE, CBE revenue, and Customs.

The successful implementation of an IFMIS will enable standard processes across public bodies and regions timely, relevant, and reliable financial data to promote fiscal discipline, assist with resource allocation, and improve operational efficiency and fiscal transparency, it is indicated.