The finance ministry in collaboration with RCSC launched the cluster finance services (CFS) initiative in Paro yesterday.
The initiative, which is also being piloted in Bumthang, is a part of the overall public financial management (PFM) reforms, implemented to strengthen fiscal discipline and to provide efficient finance and accounting services in the budgetary bodies.
According to a press release from the finance ministry, the objective of the initiative was based on the concept of sharing of services. “It will bring together all finance personnel working in various regional, autonomous or branch offices under one cluster office in each region or dzongkhag.”
However, the initiative does not include the finance sections of the respective dzongkhag administration. All finance services would be catered from the office of CFS irrespective of the location of the agencies.
The press release states that the initiative would optimise and rationalise the deployment of finance personnel and eliminate the current practice of their placement in individual agencies.
“This initiative is expected to enhance prudent fiscal discipline through proper check and control mechanisms, and institute adequate internal control systems in the agencies.”
It is also expected to improve the performance and delivery of finance services through enhanced efficiency of finance personnel and standardised service delivery across agencies, according to the press release.
Officials said that the initiative would also be rolled out in Thimphu and other dzongkhags in a phased manner from July this year.
The pilot initiative is being carried out with the support of a multi-donor fund contributed by the European Union and Austrian Development Agency and is being administered by the World Bank.