BUDGET TRANSPARENCY DEMARCHE FOR THE MALDIVES

UNCLAS COLOMBO 001021 SIPDIS PASS TO EEB/IFD/OMA BRIANA SANDERS/JENNIFER PETERSON E.O. 12958: N/A TAGS: ECON MV PGOV SUBJECT: BUDGET TRANSPARENCY DEMARCHE FOR THE MALDIVES REF: STATE 81177 ¶1. Post delivered reftel demarche to the Government of the Maldives (GOM) through the Ministry of Foreign Affairs and the Ministry of Finance and Treasury. Minister of Finance and Treasury Ali Hashim responded that the GOM plans to increase its budget transparency. The GOM has conducted a Public Expenditure and Financial Assessment (PEFA) for a three year period ending 2008. The GOM plans to publish the PEFA pending a few corrections and World Bank and International Monetary Fund approval of the PEFA. Minister Hashim also quoted the PEFA report that 'budget coverage is very comprehensive, and transparency is quite high in some areas of budget management. The public has access to important fiscal information, such as the budget documents themselves.' Post has not seen the PEFA report to confirm these statements. In addition, the GOM has conducted a Debt Management Performance Assessment (DeMPA),and they plan to publish that report as well. ¶2. Comment. The Maldives is emerging from 30 years of authoritarian rule, and the new democratic government is taking steps to increase transparency. Therefore, the GOM appears to be on the right track to increase the transparency of its budget process. End Comment. BUTENIS