TORTOLA, British Virgin Islands – The Ministry of Finance (MoF) has completed the first phase of a technical assistance program aimed at improving the efficiency and accuracy of its revenue forecasting processes. The program is being led by the Caribbean Regional Technical Assistance Centre (CARTAC), a specialized agency of the International Monetary Fund (IMF).
“An evaluation of our budget drafting processes identified areas that could be streamlined and made less labour-intensive,” said Michelle Richmond-Phillips, macro-fiscal coordinator. “We specifically wanted to improve the linkages between fiscal data and key macroeconomic variables for more accurate forecasting.”
In response to this need, CARTAC’s macroeconomics advisor, Christian Johnson, conducted a two-and-a-half-day training session from March 26-28, 2024. Representatives from the treasury department, accounts, budget, and macro-fiscal units with the ministry of finance participated in the sessions.
“The training covered a broad range of theoretical concepts and practical applications using forecasting software,” explained Johnson. “By the end of the week, participants had a working knowledge of the tools and techniques necessary to implement real-time revenue and expenditure projections linked to GDP, the primary macroeconomic variable.”
This new framework will allow the MoF to forecast revenue more accurately, facilitating informed discussions on expenditure policies and fiscal strategies.
The next phase of the program is tentatively scheduled for May 2024.
“We are grateful to CARTAC for providing this valuable expertise,” said Jeremiah Frett, financial secretary. “This technical assistance will contribute significantly to strengthening the design and efficiency of our budget processes.”