The public sector requires intelligent data acquisition, as well as an efficient planning, in order to face constant technological advances and accomplishing socioeconomic impact
To carry out a planning, having as a tool the analysis and the visualization of data, allows the public sector to examine the current situation of different regions and to observe a general overview to the future of the diverse impacts that has its social and economic management.
Innovation in data extraction and analysis allows the public sector to provide greater strengths to provide quality services. Streamline the resource and eliminate risks; it allows to identify more opportunities with actions to the convenience of the population.
Both incoming and well-entered governments require a holistic view of their financial situation
Given the entry into force of new policies at the federal level that will reduce the availability of valuable resources for States and municipalities, it is urgent to initiate a process of strengthening sub-national public finances in a timely and effective manner.
From our experience there are five main core areas that violate public finances, and that generate needs that need to be addressed quickly to obtain early results:
Comprehensive categorization and quantification of your income and principal expenses. There is no certainty of the different sources of income and spending destinations which generates disorder in resources management. Despite having approved and revised budgets, income can vary appreciably by adjustments in the economy and public policy decisions, regardless of the initial forecast of income.
In addition, the costs are adjusted throughout the budget cycle according to economic and political shocks, which generates the need for accommodations in the amounts and periodic reviews. Marginal deviations from the budget without an adequate change-control scheme can lead to significant impact on public finances in the medium term.
Identification and quantification
Lack of identification and complete quantification of debts (financial and non-financial) –
Even though in most cases the amount of financial and ADEFAS debts is well established, there is a lack of constant monitoring of debts to suppliers and contractors which can lead to the short-term debt bulge that they can affect the finances and the operation of the Government itself. It is therefore necessary to establish a monitoring mechanism and an alarm system to assist sub-national governments and adopt early-resolution measures.
Ordering and sanitation
Ordering and sanitation of short-term liabilities (suppliers, contractors and ADEFAS) The decontrol in the hiring of goods and services, and public works deepen the deterioration of the subnational public finances. It is important to make a stop and evaluate the debts to suppliers, contractors and ADEFAs to be able to design a strategy of resolution that involves Review the validity of the passive assumptions, make a filtering from a rigorous due diligence , and establish an orderly payment strategy to clean up public finances. The result of this effort will be the sanitation of debts and the establishment of a process that controls the registration of short-term non-financial liabilities in order to avoid further lumps.
Optimization of the use of federal and own resources
A recurrent problem is the lack of planning and adequate programming of the use of public resources, which sometimes generates that the different sources of financing are suboptimally used. A clear example is the mexican’s Popular Insurance, where the lack of complete and timely information to the States to make use of their resources of free disposition in activities and works that could be financed by federal resources if a procedure had been followed order of expenditure execution.
The constant change in the rules of operation and other criteria of use of federal resources deepens the problem. The objective will be map the different funds to which you have access and your potential destinations according to the regulations, and tie them with the strategies of government and daily necessities to ensure their timely application according to regulations.
Need for self-income strengthening
States and municipalities depend to a large extent on federal transfers obtained from the provisions of the Fiscal Coordination Act, and the various specific conventions signed year after year. Given a shortage of resources and time, a significant portion of the management of the Executive group of Governments is dedicated to obtaining these additional resources to the detriment of striving to strengthen their own income.
The new reality will force sub-national governments to refocus their energies to seek in a first instance to gain more revenue with information at hand, and then to improve information to grow their income-generating capacities. In large part, the effort requires improving its databases, identifying possible leaks, and attacking vulnerabilities in a mixed strategy that focuses on addressing point-and-click operational weaknesses and establishing a medium-term roadmap to ensure a Growing trend in income generation. Generating and obtaining information in a timely, reliable and valuable way is a central objective.
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