The World Bank Implementation Status & Results Report Building a Modern Fiscal System Technical Assistance (P154694) Building a Modern Fiscal System Technical Assistance (P154694) EAST ASIA AND PACIFIC | China | Macroeconomics, Trade and Investment Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 9 | ARCHIVED on 25-Jan-2021 | ISR44767 | Implementing Agencies: People's Republic of China, Policy Research Office, Ministry of Finance, Ministry of Finance, International Economic and Financial Cooperation Department Key Dates Key Project Dates Bank Approval Date: 29-Apr-2016 Effectiveness Date: 25-Aug-2016 Planned Mid Term Review Date: 14-Oct-2019 Actual Mid-Term Review Date: 25-Oct-2019 Original Closing Date: 31-Jul-2021 Revised Closing Date: 31-Jul-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objectives of the proposed project are to inform the design and implementation of the Central Government's fiscal reform program and to improve the Government's capacity in public financial management Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Key elements of China's public finance system:(Cost $20.66 M) Fiscal Policy and Sustainable Development:(Cost $7.49 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions Drawing on global knowledge and international good practice, the project achieved some notable outcomes which contributed to policy making, design and implementation. The following highlights achieved outcomes. Component A: Key Elements in China’s Public Finance System Building Tax Legislation  Draft laws on excise tax and tariffs were prepared drawing on global knowledge and international best practices and formally submitted to the State Council in 2020. Improving Fiscal Legislation 1/25/2021 Page 1 of 7 The World Bank Implementation Status & Results Report Building a Modern Fiscal System Technical Assistance (P154694)  MOF decree No. 102 “The administrative regulations on government procurement of public services” was promulgated in January 2020.  Promulgation of new “accounting standards and guidance” to deepen accounting reform and strengthen government accounting standards system by 2020.  Draft “Regulations on the Management of State-owned Financial Assets” open to public feedback on MOF’s website.  Study on improving the fiscal compensation mechanism to ensure universal access of electricity and communications services. Study contributed to proposed amendments of the electricity law and telecommunications law. Budget management reforms  Roll out of accrual-based government comprehensive financial reporting at various levels of government.  Improving specific accounting standards to support government financial reporting.  High-level international workshop on performance-based budgeting was held with a summary report submitted to MOF leadership. Component B: Fiscal Policy and Sustainable Development  Study on procurement based on international good practices contributed to amendments of the “Government Procurement Law”.  Study on accessing WTO Government Procurement Agreement was submitted to the Vice Minister.  Established a comprehensive environmental tax policy information database and conducted firm survey on the implementation of the Environmental Protection Tax Law.  New tariff policy was issued which increases the duty-free purchase quota in Hainan province to 100,000 yuan per person per annum. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Low Low Low Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Low Moderate Moderate Environment and Social Low Low Low Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Inform the design and implementation of the central government's fiscal reform program IN00931169 1/25/2021 Page 2 of 7 The World Bank Implementation Status & Results Report Building a Modern Fiscal System Technical Assistance (P154694) ►Dissemination of fiscal policy reform proposals to decision makers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 6.00 20.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 See annex 2 in the attached aide memoire on the project's results in details Comments: Improve the Government's capacity in public financial management IN00931170 ►Enhanced capacity and skills in core budget management systems in MOF (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 As the first batch of the secondees was just completed not long ago, survey among activities participants is now underway, but yet to be completed by the PMO. Comments: . Overall Comments PDO The PDO indicator 2 has not yet been assessed, though intermediate outcomes on capacity building activities were reported. The PMO was advised to conduct a survey and interview among the beneficiaries who undertook both domestic and overseas trainings so that progress in achieving the expected result is measured and reported at the agreed intervals. Intermediate Results Indicators by Components Fiscal Policy and Sustainable Development IN00931327 ►Policy studies undertaken (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 5.00 14.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 - Customs law systems of major developed countries and developing countries; comparatives studies of Comments: key customs policies (subproject B04) IN00931329 ►High level policy dialogue workshops (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/25/2021 Page 3 of 7 The World Bank Implementation Status & Results Report Building a Modern Fiscal System Technical Assistance (P154694) Value 0.00 2.00 2.00 1.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 One workshop on "The development of China's economy in the context of high quality in the New Era" held in Beijing with participants from MOF, academia, think tanks, and the World Bank. Comments: One workshop on "Issues with new urbanization" IN00931331 ►Public outreach of policy study findings on fiscal policy (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 2.00 7.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 IN00931333 ►Capacity building: training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 85.00 145.00 34.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 Number of central and local officials undertaking training in China and abroad (various subprojects). Comments: IN00931335 ►Collecting, recording and reporting inputs received from beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 3.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 Key elements of China's public finance system IN00931326 ►Policy studies undertaken (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20.00 23.00 26.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 Comments: IN00931328 ►High level policy dialogue workshops (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/25/2021 Page 4 of 7 The World Bank Implementation Status & Results Report Building a Modern Fiscal System Technical Assistance (P154694) Value 0.00 3.00 4.00 3.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 Comments: IN00931330 ►Public outreach of policy study findings on fiscal policy (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 14.00 17.00 13.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 IN00931332 ►Capacity building: secondments (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 9.00 100.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 One MOF secondee to WB Macro Modeling Team in Washington, DC. 6 secondees were placed in international finance institutions in September, 2019. Comments: 2 secondees were placed in international organizations in 2020, in Beijing IN00931334 ►Capacity building: training (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,105.00 1,205.00 66.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 Number of central and local officials undertaking training in China and abroad (various subprojects). Comments: IN00931336 ►Collecting, recording and reporting inputs received from beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 3.00 7.00 Date 06-Sep-2016 01-Jun-2020 09-Dec-2020 03-May-2021 Draft Administrative Regulation on Government Procurement of Public Services was open to the public for Comments: comments in June 2018 (subproject A07). Overall Comments IR See annex 2 of the attached aide memoire on the project's results in details. 1/25/2021 Page 5 of 7 The World Bank Implementation Status & Results Report Building a Modern Fiscal System Technical Assistance (P154694) Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154694 IBRD-86160 Effective USD 22.00 22.00 0.00 7.57 14.43 34% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154694 IBRD-86160 Effective 29-Apr-2016 31-May-2016 25-Aug-2016 31-Jul-2021 31-Jul-2021 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC 1/25/2021 Page 6 of 7 The World Bank Implementation Status & Results Report Building a Modern Fiscal System Technical Assistance (P154694) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 1/25/2021 Page 7 of 7