Public financial management and accountability

Implementing Public Financial Management Reform

Changing existing governance systems can be challenging, especially if communication of the changes, the reasons behind them, and the planned or expected results to be achieved are lacking. In fragile and conflict-affected states (FCAS), this can be further complicated by the involvement of international agencies and their relationships with country governments, as well as by…» more

Decentralisation of budgeting process

This literature review examines evidence about the impact of public financial management (PFM) interventions in the field of decentralisation of budgeting. It asks: What is the effectiveness of devolved budgeting models in relation to the efficiency of PFM systems, service delivery, budget allocation, citizen involvement, accountability and anti-corruption?  What factors ...» more

Public procurement reform: assessing interventions aimed at improving transparency

This Rapid Evidence Assessment (REA) asks: what is the effectiveness of different interventions that aim to improve the transparency of public procurement? It also asks: What is the impact of improved procurement on accountability, anti-corruption and service delivery? Is it possible to produce key success criteria? An evidence base consisting of 48 studies, of high ...» more

PFM and corruption

Public Financial Management (PFM) processes – revenue mobilisation (e.g. taxation and customs), budget preparation and resource allocation, budget execution (e.g. procurement and payroll), and the accounting and auditing of government expenditure – are a key focus of donor supported anti-corruption reforms. A focus on the budget and budgetary processes is not surprising given that: (1)…» more

PEFA: What is it good for? The role of PEFA assessments in public financial management reform

Sierd Hadley and Mark Miller
2016

How can the PEFA framework both help and hinder our understanding of PFM systems? This paper illustrates how PEFA can be (mis)used to guide PFM system reform. While the PEFA framework remains the most comprehensive indicator of PFM to date – over 500 formal assessments have been undertaken and verified by the Secretariat since its launch in 2005 - not all elements of the ...» more

Measuring the performance of PFM systems

Government budgets and their supporting systems – often referred to as Public Financial Management (PFM) systems – are one of the key tools that governments use to turn policy statements and intentions into the delivery of goods and services. In fact, much of what governments do depends on raising, borrowing and spending public resources. Interest…» more

Webinar video: Public Financial Management

Dr Paolo de Renzio (International Budget Partnership) and Prof Dominik Zaum (University of Reading)  gave short presentations on transparency, participation and corruption in Public Financial Management. Discussant Dr Simon De Lay (University of Birmingham) drew on his experience and recent research to reflect on issues raised, and participating development practitioners from around the world contributed questions and comments. The webinar was held on 24…» more

Public financial management evidence mapping

This paper reviews the extent of evidence for the effect of Public Financial Management (PFM) interventions on outcomes in low and middle income countries. It is based on a database of 197 studies compiled after a rigorous search process. The number of studies in the field was surprisingly low, reflecting a series of challenges in acquiring robust evidence. Studies tended to ...» more

Managing change in PFM system reforms: A guide for practitioners

World Bank
2015

This guidance note presents the key components of change management programs, together with several country cases, in order to assist practitioners in the design of change management and adaptive leadership programs as an integral part of country specific PFM system reform projects. Key findings: Key challenges for mobilising a large group of individuals (reform teams) ...» more

Public financial management in fragile states

Effective Public Financial Management (PFM) in fragile states is a critical foundation for basic economic governance and in establishing the performance, legitimacy and accountability of functional states. Extreme poverty is increasingly located in these countries, which face multiple challenges of ongoing conflict, instability and resource constraints, both financial and human. A June 2015 summary ICAI…» more

Climate finance and public finance management

Much attention has been directed at the international commitments to assist developing countries respond to climate change. This is reflected in the debate over the commitments made under the United Nations Framework Convention on Climate Change: at the UNFCCC negotiations in Copenhagen in 2009, developed countries committed to jointly mobilise $100 billion climate finance per…» more

Gender responsive budgeting

Gender responsive budgeting (GRB) brings together two issues that are not commonly associated with one another: gender equality and public financial management. GRB argues that gender equality principles should be incorporated into all stages of the budget process. GRB initiatives seek to improve the results of budgets in general, and gender equality and women’s empowerment…» more

Designing and monitoring PFM reform programmes

The PEFA framework is the most comprehensive assessment instrument. It provides indicators to measure all dimensions of a PFM system. While PEFA assessments are now in wide usage, other diagnostic instruments and tools – like the IMF Fiscal Transparency Code and various World Bank and OECD tools – are used alongside them for more specific purposes. Alternatively, ...» more

Pro-poor national budgets

There is a wealth of evidence that spending on basic social services (health, nutrition, education) and social protection can be progressive and reach the poor, with particularly high potential returns from expenditures in these sectors reaching poor and vulnerable women and children. In recent years, empirical research has reinvigorated interest in the potential poverty ...» more

Public financial management

PFM: Why does it matter and how best to improve it? What is Public Financial Management (PFM)? PFM refers to the set of laws, rules, systems and processes used by sovereign nations (and sub-national governments), to mobilise revenue, allocate public funds, undertake public spending, account for funds and audit results. It encompasses a broader set…» more

Examples of PFM impacts on gender equality

Research for this report was unable to find conclusive cases where public financial management (PFM) reform led to impacts on gender equality. This is because PFM reform does not necessarily lead to gender equality impacts, and conversely improvements in gender equality do not always require, or follow on from, PFM reform. It may also be that gender impacts are rarely covered ...» more