The Costing Guidance Allows More Precise Costing of Structural Reform Measures
Ms. Zana Radoniqi, Senior Budget Analyst, at the Ministry of Finance and Transfers in Kosovo* is well aware of the importance of structural reforms for boosting growth and employment in her country. While implementation of structural reform agenda is a priority for the country, Ms. Radoniqi highlights also the importance of getting both line ministries and ministry of finance staff trained in area related to costing of structural reforms. This has motivated her to attend several learning events as part of the EU funded multi-country project “Strengthening Line Ministries’ Capacities to Assess Fiscal Implications of Structural Reforms” (FISR).
“I attended three activities as part of the “Strengthening Line Ministries’ Capacities to Assess Fiscal Implications of Structural Reforms” (FISR) project: “Integration of Structural Reforms into Budget”, “Knowledge Sharing on Costing of Structural Reforms: Economic Reform Program (ERP) for the Period 2020–2022” and “Costing of Structural Reforms in ERP: Methodology and Challenges”.
Through these activities, we had the opportunity to learn and discuss about issues and challenges faced by officials who are involved in the ERPs. Experts delivered lectures and gave advice, and conducted exercises on concrete issues from line ministries.
The CEF provided also the “Methodological Guidance for Costing of Structural Reforms”. This document and the CEF’s local assistance have greatly influenced the work of officials responsible for designing and costing of structural reforms. This has contributed to a more precise estimation of measures and activities to be integrated into the state budget. From my point of view, when I read the “ERP 2020–2022” and “ERP 2021–2023”, I could have an indication of what budgetary requests may contain when it comes to requests related to structural reforms.
The methodology of costing measures and activities, as set out in the guidance, is very close to the one we use for budget impact assessment of new government initiatives, so that the usage of the guidance helps improve the costing skills of officials.
I would also like to mention that these learning initiatives had a good impact on communication between the Ministry of Finance and line ministries in the sense of collaboration regarding structural reforms. I had the opportunity to meet peers from line ministries who are directly involved in designing and implementing measures and activities. I obtained very useful information about various measures and activities, sources of funds, their operative and capital costs, difficulties in implementation, and so on.
Improving costing skills and communication between officials will lead to a better and more adequate integration of structural reforms into the state budget: the more precise the costs are, the better the planning process is.
I would like to conclude this reflection by saying that the learning initiatives of the FIRS project, organized by the CEF, have improved particular aspects of work and have made a great contribution to the overall process as well as my personal achievements.”
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*This designation is without prejudice to positions on status and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo Declaration of Independence.