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Strategy and policy
Reforms and Investments

Supporting Public Finance Management Reforms in Madeira and Azores

Supporting reforms to ensure efficient and effective revenue administration and public financial management

Funding Programme
Year
  • 2022

Supporting Public Finance Management Reforms in Madeira and Azores

The European Commission aims to improve public finance management in Madeira and the Azores through knowledge transfer, capacity building, and the development of tools for regional accounts consolidation. It supports new budgetary frameworks, upgrades to data integration platforms, and enhanced forecasting models to increase fiscal efficiency and compliance with national standards. Expected outcomes include improved resource management and fiscal discipline.

Context

The "Supporting Public Finance Management Reforms in Madeira and Azores" project supports the EU’s priorities of fostering digital transformation and improving fiscal resilience, aligning with the Recovery and Resilience Facility. It addresses challenges related to fragmented public accounting systems, inconsistent budgetary frameworks, and the need for enhanced resource management. By promoting knowledge transfer and modernising financial tools, the project helps both regions meet EU fiscal transparency standards. Challenges included integrating diverse financial systems and ensuring compliance with the Court of Auditors’ recommendations while building capacity for long-term financial management reforms.

Support delivered

The project aimed to enhance public finance management in Madeira (RAM) and the Azores (RAA). Beginning in early 2023, the project focused on capacity building through workshops, fostering close collaboration between the two regions. Key activities included a diagnostic analysis for RAA and knowledge transfer from RAM, leading to the development of proposals with options for a new Budgetary Framework Law to align both regions with national and EU fiscal standards. Additionally, the project supported the consolidation of regional public accounts and upgrades to financial management tools to enhance resource management and fiscal transparency.

Results achieved

The project significantly strengthened collaboration between Madeira (RAM) and the Azores (RAA), enhancing their public finance management systems. Key results include the development of proposals for a new Budgetary Framework Law, consolidation of regional accounts, and upgraded financial management tools. The close cooperation between the two regions improved knowledge sharing and capacity building, empowering local authorities to manage public finances more effectively. The project is expected to foster long-term fiscal stability, greater compliance with EU standards, and enhanced resource management, benefiting regional finance departments and ensuring better alignment with national fiscal frameworks.

More about the project

You can read the documents related to the project here: