Sector Policy Support Programme in Social Protection and Public Finance Management

2009 to 2011

£805,000

European Commission

Project management, social protection, public financial management, education.

This project will be supporting Government structural reforms in areas related to social protection and public finance management (PFM). The technical assistance team will also be charged with the overall monitoring of the implementation of the EC budget support programmes in the Kyrgyz Republic.

In the area of PFM the project will consider the Government’s Medium-term vision on reforms supported by all the key donors. The EC has provided technical assistance to the Ministry of Finance (MoF) for drafting a medium-term vision, and hence, the advice given to the MoF will be aligned with the mainstream reform agenda endorsed by the Government. In addition, the project will be actively involved in EC-Donor discussions in the framework of the Multi-Donor Trust Fund, and assist the EC Delegation in the coordination of its activities.

It is hoped that reforms in the area of social protection will lead to changes in the existing legislation. The project will aim to have a fiscal impact, assisting the Ministry of Labour and Social Development (MoLSD) to cost the budget for social benefits after the existing legislation has been redrafted. Social transfers need to be targeted to maximise the impact from the constrained budget. The team will work to ensure that the targeting system avoids dis-incentive effects (reduced labour supply and hiding of income to meet the eligibility target). As the EC has provided technical assistance to the MoLSD to redesign the social assistance scheme and is currently piloting a new scheme in selected regions, the advice on social protection reforms will take into consideration these existing achievements.

EU Social Sector Budget Support in Kyrgyzstan

EC Budgetary Support Programme:

• Regular monitoring of the reform implementation process;
•  Support to the Steering Committee of the Sector Policy Support Programme, 2007-2009;
• Advise and assist the Government in preparing the documentation required in the Financing Agreement.

Public Financial Management:

• Advise and assist the Government in preparation and implementation of PFM reforms;
• Participate in the formulation and implementation of the Multi-Donor Trust Fund;
• Advise and assist the MoF and MoLSD in improving the Medium-Term Budget Framework,  annual budget preparation and execution processes.

Social Protection:

• Assist the MoLSD to redesign the social assistance scheme and drafting new social benefit legislation;
• Assist the Government to improve the management of the vulnerable families and deprived children. 
• Monitor the proper execution of payment of social transfers ('state benefits')

The Project is also expected to:

• Coordinate closely with EC budget support reviews, related missions and short-term technical assistance teams;
• If needed, assist the Delegation in formulation of the future EC budget support programme in social protection;
• On request, assist the European Commission Delegation and the Government in formulation of a Sector-wide Approach and/or EC sector budget support in education;
• Coordinate with donors involved in PFM and social protection;
• Ensure appropriate visibility to EC budget support and SPSP, while observing the latest Communication and Visibility Manual for EU External Actions concerning acknowledgement of EC financing of the project