Midterm evaluation of fiscal reform for a strong Tunisia (FIRST)

FIRST aims to provide technical assistance (TA) and capacity-building to the Ministry of Finance (MOF) to strengthen the fiscal foundations for sustainable and inclusive growth and thereby improve the conditions for business investment and job creation. USAID/Tunisia requested a midterm evaluation of FIRST to identify the extent to which the activity is achieving intended results, and as well assess the relevance, effectiveness, and efficiency of the aid delivery. FIRST’s designed approach to facilitate fiscal reforms and build MOF capacity through demand-driven technical assistance, tools, training, and technology was relevant but an implementation strategy was not articulated. Year 1 delivery was not very effective and in Year 2, despite a more focused approach and accelerated activity progress, there were few concrete achievements. Efforts to reform tax administration are more likely than tax policy to yield results in the short term, and outreach efforts that make for a more open government can promote voluntary tax compliance. FIRST was able to mitigate many constraints on implementation, but needs to extend its partnering to donors, the private sector, and civil society. It should also continue to enhance the sustainability of its inputs, complete all main activities, and ensure interventions are adopted by the MOF.