7- 9 December 2015 Washington, DC, USA
ICGFM winter training Conference
Finance Minister CPA Ángel Mario Elettore
Transparency Policy in the Public Management
Finance Ministry/ Government of Cordoba Province
Number of Inhabitants: 3,657,654 Surface: 165,321 km² Density: 21,58 Inhabitants per km² GGP: U$S 30,564 million¹ GGP per capita: U$S 8,567 Budget: U$S 7,807 million¹
Cordoba Province in Figures
Human capital education: high literacy rates(98.5%) and a high level in university education.
(1) Source: Nominal GGP l 2014 published by the Directorate of Statistics and Census for Cordoba Province and average exchange rate in 2014.
Córdoba represents 8.1% of the whole exports in the country.
Good Standing
Organizational Transparency & Evolution
Services to Citizens
Environmental Management
Laws of the New State
Sustainability Policy
Growth and Sustainability Policy
The Fiscal Solvency Model underpins a Financially Sustainable State
Source: Investment/Savings Account, accrued financing each year 2003-2014 and over 2015 2nd quarter.
Surplus economic outcomes helped balance accounts without implementing adjustments
Fiscal Solvency in Figures
35 438 597 769 873 336 449
2.118
1,221 1,959
3,881
4,784
3,126
0
2,000
4,000
6,00020
03
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
(II)
Current Savings in AR$ million
14 250 220 239 167 23 -389
1,010
61
1,195
1,846
1,293
366
-1,000
-500
0
500
1,000
1,500
2,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
(II)
Financial Outcome in AR$ million
Provincial tax resources increased their participation by +5%
Source: Investment/Savings Account, accrued financing each year 2003-2014 and over 2015 2nd quarter.
Tax management for a fiscal solvency
34% 33% 34% 33% 33%
38% 38% 38% 37% 40% 41% 39%
30%
35%
40%
45%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
(II)
Provincial taxes within the total tax revenue
66% 67% 66% 67% 67% 62% 62% 62% 63%
60% 59% 61%
50%55%60%65%70%
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
(II)
National Taxes within the total tax revenue
Source: Investment/Savings Account, accrued financing each year 2003-2014 and over 2015 2nd quarter.
Spending Management for Fiscal Solvency
3,286 4,923 9,055
13,904
24,203 31,889
44,583
27,766
08,000
16,00024,00032,00040,00048,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
(II)
Ongoing Costs (in AR$ million)
138 254 480 630 856 743 1,235
1,937 2,054
1,579
2,987
4,950
3,535
01,0002,0003,0004,0005,0006,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
(II)
Capital Expenditure (in AR$ million) Continuity
of the policy for public investment
ONGOING DEBT RELIEF IN THE PROVINCE
Debt Stock
(1) Source: Annex II to LRF as of June 2015. Average exchange rate for reference as of 2nd quarter 2015 based on Communication “A” 3500 of the Argentine Central Bank.
The debt stock as of 2nd quarter 2015 amounts to USD 1,696 million(1)
Debt Stock as a percentage of Total Revenues
Debt Stock as a percentage of the provincial GGP
Sustainable Borrowing
(1) Law 25.917 for Fiscal Responsibility . * Current revenues net of revenue sharing with municipalities of the Non Financial Public Administration .
The model for Fiscal Solvency has helped keep a level of sustainable borrowing
Debt services should not be over 15% of current revenues net of revenue sharing with municipalities, pursuant with the
Law for Fiscal Responsibility.
5.5% 4,1% 4.0% 3.4%
10.4%
1.4% 1.3% 1.0%
15%
2013* 2014* 2015 2016 2017 2018 2019 2020
Relación Servicios Proyectados vs. Ingresos Proyectados
Relación Deuda/Ingresos Corrientes netos de Coparticipación a Municipios
Projected Services vs. Projected Revenues Ratio
Relation between Debt/Current Revenues net of Sharing with Municipalities
International Financial Crisis
Political structures need to provide answers
Actions aimed at creating a more open and efficient Government, with the use
of technology
Goal: Recover Trust
IDB, Policy for Access to Public Information (2010)
IMF, Manual for Fiscal Transparency and Good Practices Code (2001, last update 2007)
Good Practices Challenge: Generate Credibility & Trust
Good Practices: a more open Government
Commitment towards
Transparency
Open Government
Transparency as backbone
Transparency as management
approach
Granted Recognition
Consolidated through…
New Technologies
Legal Reforms
Quality management
Regulatory Compendium for Finance Administration Issues
Regulatory Compendium for Tax, Cadastral and Registry Issues
Provincial Tax Code – Reorganization and Regulation
Legal Reform
Regime for Fiscal Responsibility (joined in 2004)
Law for Financial Administration (passed in 2003)
Works aimed at organizing and reinforcing the regulatory framework
Commitment to observe clear rules for fiscal behavior and to increase transparency in the public management
Law No.9086 aims at guaranteeing the application of those principles of transparency, finance regularity, legality, cost-
effectiveness, efficiency and effectiveness, as well as implementing modern accounting practices.
Joining Regime for Fiscal Responsibility (2004)
Passing of the Law for Financial Administration (2003)
Legal Reform (Cont…)
Implied cutting down issued resolutions. Allowed showing all rules related to tax,
cadastral and registry issues in a thorough, systematic and functional way .
Compendio Normativo en materia Tributaria, Catastral y Registral
Regulatory Compendium on Tax, Cadastral and Registry Issues
Legal Reform (Cont…)
Implied the review and improvement of external processes, as well as incorporating internal
procedures in all directorates reporting to the Secretariat for Finance Administration.
Regulatory Compendium for Financial Administration Issues
Legal Reform (Cont…)
Implied compiling, consolidating, reviewing, and analyzing provincials decrees while
selecting those with tax contents, passed since 1952.
Provincial Tax Code Reorganization and Regulation
Legal Reform (Cont…)
Resolution 364/09 - Transparency
Adoption of international standards for good practices
and disclosure of reliable information
Resolution 364/09
All agencies were tasked with improving transparency levels in
published information
The FINANCE MINISTRY granted legal formality to transparency policies
•Directorate General for Revenues: the first to be awarded quality certifications. They currently have 5 Certified Macro processes
•Provincial General Registry: 5 Quality Certifications in HQs and Rio Cuarto.
•Secretariat for Financial Administration: in 2014 all subsystems used by the Secretariat got Quality Certification. Córdoba is a pioneering province in reaching such an assurance.
Quality Certifications
Subsidios y Ayudas entregadas
Transparency: Transparency Portal Free access to Reliable Information, simplified search and access to information
Transparency: Government
Revenue Sharing Collection
Enforcement
Law for Fiscal Responsibility
Salary Level Debt
Budget
BESIDES the WEB page, the Government also shows the following information
A key tool for Public Management
Information on Revenues, Spending, Debt and Budget
Friendly and summarized presentation of general contents of the Provincial Budget
Created in 2013. Shows data from 2013, 2014 & 2015
Transparency: Citizen Budget
Encourages and fosters the participation of citizens in all
issues related to the public management
2014
2014
Transparency: Audit Works
2012 & 2014
Public Debt Audit
Córdoba Bursátil
Trust
Floating Debt
Each audit work was conducted as at 30 September 2014
In line with the transparency policy the Finance Ministry has worked to issue an independent professional report on the
present situation of the following processes:
1° Budgetary Transparency Rate Córdoba
leads
1° in Compliance with the Law for Fiscal Responsibility
Córdoba leads
1° Fiscal Visibility Ranking 1°ISAGOL Ranking, e- government -
Córdoba Leads
Transparency Awards
Participation of the Finance Ministry in the “G4 Pioneers Program”
Moreover: GRI Report In 2015 Cordoba published the THIRD SUSTAINABILITY REPORT report for 2013-2014.
It provides information on day-to-day performance, focusing not only on economic impacts, but also on social and environmental ones
Paper Energy
Recycling
•Acquisition of multifunction photocopiers that help digitalizing documents
•Newspapers and publications are no longer purchased
•The consumption of paper reams has dropped by 55% since 2010 • The use of ink for printers was cut down by 20% last year
•Continuity of the policy to extend the use of compressed gas in vehicles
•Restructuring and modernization works in electrical systems
• As a result, energy consumption dropped by 11% last year.
•Unused IT equipment, furniture and office elements belonging to the institutions were donated to different organization. Over the last two years 200 pieces of furniture were donated
Environmental Management
