MEFMI provides technical assistance to Government of Lesotho

MEFMI provided technical assistance on Government Finance Statistics (GFS) to the Ministry of Finance of Lesotho from 25 to 29 October 2021.  The MEFMI Phase V Strategic Plan (2017-2021) identified GFS as one of the critical capacity-building areas in macroeconomic statistics.

The adoption of the GFS Manual 2014 (GFSM 2014) by some MEFMI member countries has led to the development and application of comprehensive accounting frameworks for analysing and evaluating fiscal policy. However, migration to this latest manual has been slow and there are still apparent data gaps to be filled by a majority of MEFMI member countries.

With a particular focus on expanding coverage to the general government sector, classification and reporting balance sheet data, the Ministry of Finance Lesotho requested MEFMI to conduct a two-phased mission on GFS. The first phase of the technical assistance mission was successfully delivered from 25 to 29 October 2021.  The second phase is scheduled to be held from 29 November to 10 December 2021.

The aim of the first phase of this mission was to provide capacity to the officials of the Ministry of Finance on classification and compilation of Integrated Financial Management and Information System (IFMIS) data using Status of Funds Reports (SOF) of forty-two (42) budget heads based on the GFSM 2014 methodology.  It was also aimed at identifying and reducing the statistical discrepancies in the GFS tables and soliciting relevant information from agencies that are involved in the payment process of government expenses. Nine (9) predesigned data collection templates customised for Lesotho were prepared for the whole mission. Phase I focused on three (3) data collection templates. Upon completion of the phase I mission, participants were able to build the Classification of Outlays by Functions of Government (COFOG) database and partially derived fiscal tables according to the details of the IFMIS Chart of Accounts (COA) into GFS methodology. It is envisaged that for the next mission, participants will apply the skills acquired to understand the other six (6) templates for data compilation. MEFMI is optimistic that this intervention will contribute to the general goal of consistent GFS data and assist the planning and execution of the budget for the Ministry of Finance Lesotho.

The mission was attended by a total of eight (8) officials, seven (7) from the Ministry of Finance of Lesotho and one (1) from the Central Bank of Lesotho. Of the 8 participants, five (5) representing 62.5 percent were male while three (3) (i.e., 37.5 percent) were female.  The mission was facilitated by Mr. Senei Molapo (MEFMI staff) and Ms. Marethabile Hlaahla (MEFMI Graduate Fellow in GFS, and Senior Economist at the Central Bank of Lesotho).

The training improved skills of officials in the Ministry of Finance of Lesotho who work with IFMIS data on a daily basis and an official from the Central Bank of Lesotho who is central in providing the Ministry of Finance with mirror data on government operations as managed by the bank system. Based on the discussions and interactions during the mission, including the positive evaluation outcome of the in-country mission, the objective of the capacity building intervention was achieved. Therefore, MEFMI expects that the skills acquired in this mission will be used to compile government financial data based on the GFSM 2014 methodology.

Going forward, MEFMI will continue to engage country officials from the Ministry of Finance Lesotho until the next mission which is scheduled to take place from 29 November to 10 December 2021.