| Project Detail |
Project Development Objective PDO Statement 24. The Project Development Objective is to increase fiscal space and improve effectiveness of public resources management. PDO Level Indicators 25. The PDO-level results indicators are as follows: • PDO Indicator 1: Value Added Tax (VAT) Gross compliance ratio. • PDO Indicator 2: Aggregate annual SOEs report prepared and published by the centralized oversight agency (SOE Commission). • PDO Indicator 3: Share of competitive biddings for procuring organizations using electronic Government Procurement (e-GP). B. Project Components 26. The proposed five-year operation financed by IDA grant seeks to improve the Government’s effectiveness in fiscal management for better public service delivery. This will be achieved by: (a) enhancing the GRA’s compliance management, revenue risk analysis, and enforcement capacity, for broadening the tax base and improving voluntary compliance; (b) introducing electronic Government procurement (e-GP); and (c) improving financial and operational performance of SOEs and reducing the telecom-related fiscal burden. The operation is built around two interlinked components that seek to address core challenges currently hampering fiscal management and service delivery. Component 1 aims to increase fiscal space for public services and implementing reforms of The Gambia procurement system for more efficient and better-quality procurement. Component 2 provides incentives for achieving results in cost-cutting measures for fiscal risk management and performance monitoring of SOEs, as well as technical assistance (TA) to reinforce the Government’s oversight and public accountability of the SOE sector and critical reforms to enhance financial viability of SOEs in the telecommunications sector. Component 1: Strengthening revenue collection and public procurement processes (US$17 million equivalent) 27. This component seeks to increase fiscal space, the efficiency of public expenditure and support business continuity in this COVID-19 pandemic. Support will be provided to MoFEA to strengthen capacity for tax policy formulation and implementation. GRA will be supported to improve its performance on revenue collection, tax compliance and taxpayer services. GPPA will also be supported to promote increased competition in public procurement through the implementation and adoption of electronic Government Procurement. Online tax services and e-procurement will prepare to support the business continuity in future situations similar to this COVID-19 pandemic. Sub-component 1.1: Strengthening the Gambia Revenue Authority’s tax administration processes and digital transformation (US$12 million equivalent) 28. Objective: This sub-component aims to enhance the GRA’s operational effectiveness and achieving digital transformation, including through widespread adoption of electronic filing (e-filing) and electronic payments (epayments) to improve taxpayer services and transparency. It will also support comprehensive tax compliance risk management processes based on international good practices. |
