PFM Reform Research Articles

Analysis of Strategic Public Financial Management Reforms on Effective Service Delivery

The overall objective of the study is to analyze the influence of strategic public financial management changes on efficient service delivery, the best metric to use to assess how well the government provides services. To ensure economic growth and development by maximizing the efficient use of scarce public resources, the emerging country PFM reform its wasteful public finance PFM's reforms must prove successful in transparency, accountability, and reporting standards on the usage of public funds to deliver services. Both approaches focused on carefully addressing serious weaknesses in financial control and were demanding in their approach. Establishing effective control was the task, and improving control efficiency is second-order work. Improvements to the current free balance systems, the allocation and prompt payment of operations to spending agencies, the focus on monthly salaries, revenue collection monitoring verification analysis and reporting, budget control, and accounts, reporting, are some of the Public Financial Management reforms that have been put into place. The sequencing, acquisition, and disbursement of funds are all subject to stringent manual controls in public finance. The Central Payment System procurement bill and cash budget disbursement are the focus of the South Sudan PFM Reform Activities, which are information technology-driven and install new, protected, discipline and procedure-driven IFMIS information technology techniques. This study used a sample size of 47 respondents for the Ministry of Finance and Planning due to the small and easily accessible population. This study employed a questionnaire with a Likert scale to collect data. Frequency analysis and descriptive statistics were employed in the study to analyze the data acquired. The analysis was conducted with the aid of the social science statistical program SPSS, and graphs and tables were used to display the findings. Yet, the results revealed that strategic public financial management improvements and accounting methods had little impact on how well the general public was treated. The results also demonstrated that budgeting, stakeholder participation, and regulatory regulations had a favorable impact on service delivery. To prevent going over budget, government institutions should first develop plans and budgets with a high level of public involvement and ownership. The management of the institution should use technology, such as IFMIS, to improve the efficiency, transparency, and accountability of revenue collecting.

North Macedonia

This PEFA assessment provides a snapshot of the country’s PFM system performance in order to support the government in defining PFM reform priorities. The previous assessment was conducted in 2015, therefore the current assessment follows after the recommended time period between the two assessments. Furthermore, the scope and objectives of the reforms initiated and implemented in the intervening period makes tracking the change in the PFM system needed and meaningful. The assessment was conducted by the International Monetary Fund and the World Bank, with the Ministry of Finance and other relevant country institutions being the primary beneficiaries of the assessment.

Niger: Request for a Three-Year Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Niger

Niger’s new government developed an ambitious reform agenda in the face of daunting challenges. The previous ECF-supported program was able to preserve macroeconomic stability and implement some key PFM reforms, notwithstanding the pandemic. However, progress on revenue mobilization was more limited, reflecting capacity constraints and a challenging environment. For the new government to achieve its development goals, it will have to overcome deep-seated social and political divisions and a deteriorating regional security situation. Enhanced reforms and the advent of oil exports over the medium-term offer hope that greater domestic resources can be marshalled to accelerate growth and poverty reduction.

The Role of EU Funds in Improving Albania’s PFM Reforms (2014-2020)

Abstract Strengthening Albanian public financial management is indeed a crucial basis for consolidating public finances and managing these in line with EU standards. Beyond the short term-measures on the existing EU support to PFM such as controls, audits and others, EU is seeking that Albania needs an overall, long-term public financial management policy in line with the EU standards. The purpose of this article is underlining the importance of EU funds in improving Albania in the way to reform its Public Finance Management for 2014-2020.

Are New PFM Reforms in Francophone Africa Working? Lessons from the Open Budget Survey

This paper revisits the evolution of budget transparency, government accountability, and citizen engagement in the budgetary process in WAEMU and CEMAC countries. We use the Open Budget Survey (OBS) to assess Member States' compliance with the new Harmonized Public Finances Framework and accordingly to measure good governance and budget transparency in the WAEMU and the CEMAC. The Open Budget Survey (OBS) conducted by the International Budget Partnership (IBP) is the only independent, comparable, and regular budget transparency and accountability assessment around the world; the OBS measures whether governments provide enough budget information to their citizens to allow them to be meaningfully part of the budget process in their countries.Our findings show that the state of budget transparency in WAEMU and CEMAC countries is far from rosy. Although significant progress has been made in recent years, most information on the budget process in these countries remains inaccessible to the public. According to the 2012 Open Budget Survey, the performance of the countries surveyed is particularly poor: their average score of 14 is three times lower than the world average score (43) and two times lower than sub-Saharan Africa’s average score (31).

Challenges and Trajectories of Fiscal Policy and PFM Reform in CEE/CIS

The purpose of this study is to provide an overview of fiscal policies and PFM reforms in 7 countries in the Western Balkans and 12 countries in the CIS, including major macroeconomic and poverty trends, fiscal policy, the size and role of the public sector, public expenditure management and its linkage to policy development, the organization of budget processes on the central and local levels, the role of various actors and tools in PFM, including civil society and the international donor community. The period of 2003-2007 was characterized by an extraordinary high rate of economic growth, both worldwide and in the CEE/CIS region. This created macroeconomic room for meeting numerous development challenges: reducing poverty and inequality, improving the quality and coverage of public services, upgrading infrastructure, and advancing various reforms, including those related to PFM. However, the economic situation deteriorated dramatically in 2008 as a result of the global financial crisis, with deep recession hitting most of the countries in 2009 and bleak perspectives for subsequent years.It remains to be seen whether the crisis situation will force governments to speed up necessary reforms. In the PFM area major tasks concern lengthening fiscal planning horizon and gradual movement toward performance oriented budgeting (the measure which can allow better expenditure targeting and decrease volatility in expenditure allocation), increasing budget transparency and creating real room for civil society involvement into a budget process. However, the reforms must also involve a broadly defined governance sphere, i.e. improving transparency and accountability of government, modernization of civil service, decentralization, including building a genuine system of local and regional self-government, and other similar measures to improve quality of public services and social policy interventions.

The Paris Declaration after 2010: Resolving Collective Action Dilemmas in Public Financial Management Reform

The 2005 Paris Declaration has made a good start in addressing aid delivery weaknesses. It rightly emphasizes reform of developing country PFM systems to deliver aid and use of established PFM diagnostics to measure progress of reform efforts. However, the Declaration does not fully address some fundamental collective action failures and will require a focused and sustained commitment by the stakeholders beyond 2010 to achieve lasting reforms. This paper uses an Olson/Sandler framework to examine failures in the supply of both PFM reform and diagnostics. In addition to the Olson/Sandler analysis of free-rider problems, it employs the concepts of linked games (or meta-games) and Schelling’s “critical mass” and “tipping.” Two tipping points are seen as crucial to the sustainable achievement of the goals of the Paris Declaration. The first requires a more intensive and systematic application of PEFA indicators to assess and encourage PD-compliant national PFM systems. The second will require a coordinated international effort under a continuing OECD-DAC umbrella, to encourage country ownership of reform and ensure observance of fiscal transparency and accountability standards, with a special emphasis on high risk areas (including resource revenue management). Leadership and more effective coordination between two lead players – the World Bank and the IMF – are essential to achieving a resolution of the supply dilemmas facing PFM reform in developing countries. PFM reform and its dilemmas, as well as being of primary importance to management of the public finances, have implications for broader international initiatives on global governance and the fight against corruption.

Maldives: Action Plan for PFM Reforms Based on PEFA Assessment

Maldives: Action Plan for PFM Reforms Based on PEFA Assessment

Advanced Public Financial Management Reforms in South East Europe

This paper aims to clarify possible systemic bottlenecks to the introduction of advanced PFM reforms in the SEE countries. It relates key fiscal developments to PFM reform processes over the last 15 years. PFM reform strategies must be realistic, with clear objectives and timetables, and with strong country ownership. Among the advanced reforms, some aspects of medium-term budgeting seems to be somewhat less challenging than performance-oriented budgeting, and it could be rational to make sure that there is solid progress in this area first. When developing performance budgets, countries should consider focusing initial efforts on the areas that are most suitable for performance management, such as education and health.

Advanced Public Financial Management Reforms in South East Europe

This paper aims to clarify possible systemic bottlenecks to the introduction of advanced PFM reforms in the SEE countries. It relates key fiscal developments to PFM reform processes over the last 15 years. PFM reform strategies must be realistic, with clear objectives and timetables, and with strong country ownership. Among the advanced reforms, some aspects of medium-term budgeting seems to be somewhat less challenging than performance-oriented budgeting, and it could be rational to make sure that there is solid progress in this area first. When developing performance budgets, countries should consider focusing initial efforts on the areas that are most suitable for performance management, such as education and health.

The Challenge of Reforming Budgetary Institutions in Developing Countries

The paper notes that the development of sound budgetary institutions in countries such as France, the U.K. and the U.S. has taken a very long time?200 years or more?and is still evolving. It discusses Douglass North's prediction?which is supported by available data?that institutional reform is also likely to be very slow in developing countries since the budget is especially prone to rent-seeking influences. Finally, the paper discusses the currently fashionable emphasis on complex, multiannual PFM reform strategies, which have been strongly promoted by the donor community; and advocates a simpler approach grounded on Schick's important principle of getting the basics right. The paper identifies several areas where further research would be fruitful.

The Challenge of Reforming Budgetary Institutions in Developing Countries

The paper notes that the development of sound budgetary institutions in countries such as France, the U.K. and the U.S. has taken a very long time - 200 years or more - and is still evolving. It discusses Douglass North's prediction - which is supported by available data - that institutional reform is also likely to be very slow in developing countries since the budget is especially prone to rent-seeking influences. Finally, the paper discusses the currently fashionable emphasis on complex, multiannual PFM reform strategies, which have been strongly promoted by the donor community; and advocates a simpler approach grounded on Schick's important principle of getting the basics right. The paper identifies several areas where further research would be fruitful.