Public Financial Management Reform Programme

The Public Financial Management (PFM) Reform Programme in Dominica is a comprehensive, government-led initiative aimed at strengthening the public sector‘s financial systems, fiscal transparency, and capacity for disaster resilience. Originally framed through a Public Expenditure and Financial Accountability (PEFA) assessment in 2010, with support from CARTAC and development partners, Dominica developed a PFM Reform Action Plan that spearheaded modernisation across budgeting, cash management, procurement, and financial reporting. The programme has introduced performance-based budgeting, upgraded commitment controls, and established a rolling three-year forecast system to improve policy-linked resource allocation.

The programme supports reforms in line ministries and the Treasury, including migration toward a Treasury Single Account, electronic collection and daily reconciliation of revenue, and automation of bank account management to enhance fiscal discipline and efficiency. Stricter procurement protocols and vendor performance tracking were introduced to reduce inefficiencies and ensure accountability, especially in the roll‑out of digital systems for contracting and asset management.

The World Bank’s COVID‑19 Recovery Development Policy Credits (DPC1 and DPC2) further deepened PFM reforms by supporting fiscal consolidation, public financial resilience, and debt sustainability measures during 2020–2022. These operations included legal and institutional reforms to manage contingent liabilities, strengthen oversight, and enable timely disaster-related spending.

Key Achievements and Future Directions

By shifting to daily electronic revenue reporting and creating robust cashflow forecasting capabilities, Dominica has improved timely budget execution and monthly decision-making. The alignment of annual budgets with performance metrics has strengthened accountability and goal-based spending. The programme also integrates disaster-resilience principles into public spending, including contingency fund rules and emergency procurement protocols, enhancing Dominica’s readiness for climate-related shocks.

Ongoing support from the Caribbean Regional Technical Assistance Center (CARTAC) continues to underpin this programme, providing advisory services and capacity-building across government agencies, particularly in cash management, budget forecasting, and procurement reform.

Looking ahead, the PFM Reform Programme will continue refining legal frameworks, expanding financial transparency, and building institutional capacities to ensure that public funds drive sustainable recovery, fiscal stability, and resilience to future economic and environmental disruptions.