Quarterly Performance and Financial Report: Fiscal Transparency Activity

The project aims to foster transparency and accountability and the implementation of anti-corruption legal frameworks, thereby improving the business-enabling climate in Honduras to promote a level playing field for investment. The project has three components: Component 1, which focuses on improving transparency and effectiveness of public spending; Component 2, which institutionalizes public-private dialogue on transparency, fiscal policy, and anti-corruption issues; and Component 3, which takes steps to professionalize the civil service. The project is implemented in partnership with the Government of Honduras, with Deloitte Honduras as the subcontractor. During the reporting period of July 1, 2018 to September 30, 2018, the project made significant progress in various areas. In the sector context, the Government of Honduras faced a severe political and fiscal test with a nation-wide transport strike in response to increases in vehicle registration fees and excise tax on petroleum. The Government held its ground, and an agreement was soon reached, but the incident set back rapport with civil society that had been building with 2019 budget consultations. However, SEFIN, the Ministry of Finance, continued with its budget outreach activities, and rapport was restored by the end of the quarter with good participation of civil society and private sector representatives in the budget presentations in September. The Government also announced its new Integrity and Transportation Policy and launched the IV Open Government Plan, which are significant developments in the area of transparency and anti-corruption. In terms of project highlights, the project implemented several key activities during the reporting period. These included the development of a public financial management (PFM) system, which aims to improve transparency and accountability in public spending. The project also conducted a gender analysis and gender inclusion strategy (GEIS) to identify areas where women can be empowered to participate in the project. The project achieved several milestones during the reporting period. These included the completion of the first phase of the PFM system, which was launched in August 2018. The project also conducted a series of training sessions for government officials on the use of the PFM system. Additionally, the project conducted a series of meetings with civil society organizations to discuss the project's progress and receive feedback. The project also encountered several challenges during the reporting period. These included delays in the implementation of the PFM system and difficulties in engaging with civil society organizations. However, the project team worked closely with the government and civil society organizations to address these challenges and ensure the project's success. In terms of planned activities for the next quarter, the project plans to continue implementing the PFM system and conducting training sessions for government officials. The project also plans to conduct a series of meetings with civil society organizations to discuss the project's progress and receive feedback. Additionally, the project plans to conduct a series of evaluations to assess the project's impact and identify areas for improvement. Overall, the Fiscal Transparency Activity in Honduras has made significant progress in various areas, including the development of a public financial management system, the institutionalization of public-private dialogue on transparency, fiscal policy, and anti-corruption issues, and the professionalization of the civil service. The project has also encountered several challenges, but the project team has worked closely with the government and civil society organizations to address these challenges and ensure the project's success.