Cablegate: Budget Transparency Demarche for the Maldives

VZCZCXYZ0001
PP RUEHWEB

DE RUEHLM #1021 3130258
ZNR UUUUU ZZH
P 090258Z NOV 09
FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC PRIORITY 0742
INFO RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

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

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