Financed by the European Union PEFA-based Assessment of Greenland EUROPEAID/127054/C/SV/multi Framework contract Beneficiaries – Lot n°11 – Macro Economy, Statistics and Public Finance Management Final Report Client: Development and Co-operation Directorate-General – EuropeAid (DEVCO) Contract 2013/334462 ECORYS MACRO Consortium Implemented by: Peter Jensen 5 August 2014 ECORYS Nederland BV P.O. Box 4175 3006 AD Rotterdam Watermanweg 44 3067 GG Rotterdam The Netherlands T +31 10 453 88 00 F +31 10 453 07 68 E
[email protected] W www.ecorys.nl Registration no. 24316726 Dept. of Marketing & Communication T +31 (0)10 453 88 31 F +31 (0)10 453 07 68 Initials Date Author(s) PJ 05/08/2014 Counter-reading FP 23/07/2014 EV 05/08/2014 Lay-out / editing EV 05/08/2014 Table of contents Abbreviations 7 1 Executive Summary 9 2 Introduction 19 2.1 Background 19 2.2 Objectives and Outputs 19 2.3 Methodology 20 3 Relationship with Denmark and the European Union 23 3.1 Relationship with Denmark 23 3.2 Relationship with the European Union 24 4 Macro-Economic Situation and Outlook 27 4.1 Macro-Economic Situation 27 4.2 Fiscal Policy 29 4.3 Municipalities 31 4.4 Public Enterprises 33 4.5 Oil and Mineral Resources 34 4.6 Medium-Term Macro-Economic Outlook 36 5 PFM Review 39 5.1 Background 40 5.2 PFM Out-turns – A. Credibility of the Budget 42 PI-01 Aggregate expenditure out-turn compared to original approved budget 42 PI-02 Composition of expenditure out-turn compared to original approved budget 45 PI-03 Aggregate revenue out-turn compared to original approved budget 48 PI-04 Stock and monitoring of expenditure payment arrears 50 5.3 Key Cross-Cutting Issues – B.