The “Implementation Completion and Results Report (ICR) for the Lebanon Emergency Fiscal Management Reform Implementation Support Project” evaluates the outcomes and challenges of the project implemented to strengthen Lebanon’s public financial management (PFM) systems. The project aimed to improve fiscal control, budget allocation, and transparency through targeted reforms in budgeting, debt, and aid management.
Key Findings:
- Project Achievements:
- Established a Macro-Fiscal Department within the Ministry of Finance (MoF) to enhance fiscal forecasting and budget preparation.
- Developed a Medium-Term Fiscal Framework (MTFF) and a Medium-Term Expenditure Framework (MTEF) to improve fiscal planning.
- Strengthened public debt management through the preparation of a Medium-Term Debt Strategy (MTDS) and improved coordination between the Ministry of Finance and the Banque du Liban.
- Challenges in Implementation:
- Prolonged political instability and government turnover delayed key reforms and approvals.
- Institutional capacity gaps hindered the effective execution of PFM reforms, particularly in implementing an integrated Financial Management Information System (FMIS).
- Limited adoption of reforms like the MTEF at the sectoral level reduced their overall impact.
- Lessons Learned:
- Strong interagency collaboration and political support are critical for the success of fiscal reforms.
- Sequencing of reforms and capacity building should be prioritized to address systemic issues before introducing advanced tools or frameworks.
Recommendations:
- Strengthen interagency collaboration for effective PFM reforms.
- Focus on foundational capacity-building initiatives to ensure sustainable adoption of reforms.
- Enhance transparency and accountability mechanisms by improving public access to fiscal information.
Note on Preparation
This report was prepared by Arun Arya, Senior Public Sector Specialist and ICR Team Leader, along with Sylke von Thadden (ICR Consultant) and Alan Pearson (PFM Consultant). The team conducted a field mission to Beirut, Lebanon, from November 11–15, 2013, to gather insights and finalize the report.