As sub-program 1 of PRMP-I goal was to support the reform process by improving fiscal and financial governance and public service delivery, leading to poverty reduction in Punjab. The policy objective of subprograms of PRMP-1 was to assist Punjab through reforms in governance structures, systems, and procedures with the following components:
- Reforming provincial finances through fiscal restructuring and financial management
- Reforming processes and institutions for pro-poor service delivery
- Creating opportunities for growth and income generation through private sector
These sub-programs were meant to enable GoPb to realize the policy agenda as outlined in the Punjab Economic Report. The agenda included improving governance, strengthening fiscal and financial structures, developing the private sector, ensuring effective public service delivery and reducing the provincial economy’s vulnerability to shocks.
Sub-Program 2
Sub-Program 2 of PRMP was built on ADB-financed governance-related Decentralization Support Program and the Devolved Social Services Program, for promoting fiscal devolution, decentralized social service delivery, local accountability, and gender reform.
The following outputs were envisaged under Sub-Program 2:
- Strengthened provincial revenues
- Rationalized provincial expenditures
- Improved effectiveness, predictability, and accountability in financial management
- Better strategic programming of investments for poverty reduction
- Restructured and strengthened government, administration, and human resource development
- Regulatory and administrative reforms for private sector development
- Reduced direct public sector involvement in economic and/or commercial operations
The reform actions agreed for Sub-Program 2 in the policy matrix, had eleven (11) outcomes with multiple sub-actions. Following is the status against each action as evaluated by the ADB Review Mission and on the basis of which the tranche of US $ 100 was released on September 18, 2007 by the ADB to Government of the Punjab.
Implementation Status of T-2 / SP-2 Actions
- Outcome 1: Broaden Tax Base: Rationalize and Restructure Provincial Taxes and Duties
- Outcome 2: Reduce Provincial Debt and Contingent Liabilities
- Outcome 3: Reprioritization of Expenditures to Improve Public Service Delivery
- Outcome 4: Transparent and User-Friendly Budgets Within a MTBF
- Outcome 5: Transparent and Efficient Procurement of Goods and Services
- Outcome 6: Effective Systems and Procedures to Operationalize Provincial Goals and Priorities
- Outcome 7: Reform, Restructure and Enhance Capacity of Provincial Agencies
- Outcome 8: Merit-Based, Transparent and Institutionalized System
- Outcome 9: Streamline Regulations and Effective Implementation for Sustainable Private Sector Development
- Outcome 10: Transparent Security of Property Rights and Improved Utilization
- Outcome 11: Reformed Public Sector Organizations (PSOs)