It is one of Ministry of Finance’s main directorates that work under the Office of Deputy Minister of Finance. It is responsible for providing necessary consultation in the areas of economic and fiscal policy in overall budgeting process. In addition, the Performance Management Team which is responsible for implementation of reforms in public finance is also included in this department. The sub-divisions of this department are presented below:
The Directorate of Macroeconomic and Fiscal Policy
It is responsible for assessing the country’s financial and economic situation where these assessments are used annually in the budgeting process. The department will carry out economic and financial forecasts for fiscal years and use a special model that is made for financial and economic analysis.
The directorate of macroeconomic and fiscal policy will continue to update the forecasts with new data available throughout the year. The unit will make financial forecasts, including estimates of resources needed to meet government commitments in the medium term, in line with the large-scale economic framework used to fund it. The department also provides technical advice in the areas of fiscal policy, including tax and expenditure policy. The analysis of the department is described below:
• Financial risk analysis:
The directorate of macroeconomic and fiscal policy analyzes the financial and economic risks and anticipates their impact. The risk analysis reports, which include risks of exchange rate fluctuations, financial risks and economic risks, are published quarterly.
• Financial Stability Analysis:
The department monitors a number of indicators for financial stability, rather than ensuring that the country is on the path to progress. To this end, the department will carry out analysis of performance of the retirement policy and long-term fiscal projections.
• Policy Analysis:
The directorate of macroeconomic and fiscal policy analyzes the impact of the implementation of new policies using a specific policy analysis model (such as (a computable general equilibrium model), as well as using econometric and other methods. The department will develop a number of internal models for forecasting and analyzing policies. The department also provides models for analyzing financial stability, large-scale economic changes, and fiscal policy, mining, retirement payments (pension) and other areas.
• Policy Recommendations:
In addition to providing analysis of financial policies, the department will provide analytical recommendations in relation to taxes, expenditures, loans and financial policy. The department also advises on economic policy issues based on research and analysis
• Financial Information Analysis:
The department provides financial information explaining the reasons for weak or strong performance of financial indicators. This helps to determine the possible impact of financial performance.
Performance Management Team (PMT)
The performance management team operates under the Directorate General of Macroeconomic and Fiscal Policy. This unit was created to plan and implement the government's financial reform program. The performance management team is clearly facilitating the implementation of the Financial Performance Improvement Plan (FPIP). The team, officially referred to as "Performance Management and Performance Evaluation Team" (PM & PER), works with all departments of the Ministry of Finance and other departments to work out and formulate five year plans based on international standards. The performance management team facilitates evaluation and performance, and verifies it by the independent authority, the progress and results of the plan to improve financial performance. Performance reports are provided by this team and sent to all relevant departments