All Pacific developing member countries, including the Republic of Marshall Islands (RMI), have great difficulty implementing policies to support long-term adjustments. The program included several line expenditure conditions under output 2 that the government struggled to implement and monitor (para. 16). In the end, the government decided to make across-the-board expenditure cuts rather than the targeted cuts proposed under the program. The condition targets were related to budget estimates rather than budget outturns. Achieving these estimates requires a strong budgetary system, but the system in the RMI is weak. It may have been more appropriate to set conditions relating to budget processes and controls rather than estimates that proved difficult to execute. [Main text, para. 39]
Public Sector Program - Subprograms 1 and 2: Program Completion Report