Finance and Tax Administration
Finance
Case Study 1: Germany
Federal State Ministry of Finance— Budget Consolidation
Booz & Company aided the government of one of the largest German federal states in identifying a top-down path to consolidation for its US$77 billion (€50 billion) budget—supported, bottom-up, by a range of specific actions.
This approach included a review of the Ministry of Finance’s current midterm planning assumptions for government income and spending and the development of scenarios that would increase responsiveness in execution. Using a bottom-up perspective, our approach toward defining specific savings measures relied on an intensive stakeholder involvement program among more than 15 ministries of the State’s government. In addition, the approach was based on a set of guiding principles that allowed the government to associate budget adjustments with a clear reform perspective and rationale.
In parallel to the definition of the top-down and bottom-up approach, Booz & Company helped the client set up the appropriate program management structure in the Ministry of Finance.
Tax Administration
Case Study 2: Middle East
Egyptian Ministry of Finance—Operationalization of Large Taxpayer Office
Booz & Company designed and implemented a large taxpayer office (LTO) for the Ministry of Finance of a Middle East country. Because large taxpayers accounted for such a significant portion of tax revenues, an LTO was the best first step in a larger transformation. This work involved both design and implementation of the organization.
Booz & Company’s contribution resulted in the following:
- Vision statement for LTO and tax transformation
- Detailed design, including issues related to processes, technology, performance measures, organization, and people/capabilities
- Customer selection criteria and framework
- Implementation plan and PMO tool kit—detailed work plan, management functions, processes, tools, and templates
- Communication strategy and plan
