Public Financial Management Systems Research Articles

Міжнародне співробітництво Академії фінансового управління в рамках виконання меморандуму про взаєморозуміння і технічне партнерство з Міжнародним консорціумом з управління державними фінансами (ICGFM, USA)

SESE “The Academy of Financial Management” (hereinafter referred to as the Academy) cooperates with the International Consortium on Governmental Financial Management (ICGFM, USA). According to the Memorandum of Understanding and Technical Cooperation signed in 2016, the foundations of a promising long-term partnership were laid. As part of the action plan for the Memorandum from 2016 to 2024 the Academy participated in many events of the international level, was directly involved in important scientific developments, actively and effectively presented and improved the image of Ukraine on the world stage. Evidence of the high level of trust and development of relations between the Academy and the ICGFM is the fact that its president, academician of the National Academy of Sciences of Ukraine Tetiana Iefymenko, was elected three times in a row to the Board of Directors of the Consortium as a representative of the Academy - an organizational member of the ICGFM. Working with the ICGFM Special Committee on International Accounting Standards, the Academy prepared proposals for many documents issued by the International Public Sector Accounting Standards Board (IPSASB). The effectiveness of cooperation with the ICGFM in the context of the implementation of the Academy's powers as an organizational member is confirmed by the implementation of the results of the Academy's research work in the activities carried out by the International Consortium, the use of international experience for further improvement of the public finance management system in Ukraine.

A need for a comprehensive health financing strategy in Pakistan: ananalysis of key health financing issues.

This study aims to analyze the challenges in financing the healthcare system of Pakistan and develop a comprehensive health financing strategy aimed at achieving universal health coverage (UHC). The paper utilizes World Health Organization (WHO) framework on health financing to build the argument. It uses qualitative research design involving focus group discussions and in-depth interviews with key stakeholders, including Federal Board of Revenue, Ministry of Finance, Planning Commission, development partners, academia and health ministries at federal and provincial levels, as well as social health insurance entities. The research findings highlight several critical issues within Pakistan's healthcare system: Firstly, health spending is inadequate to provide financial protection to 24 million people. Secondly, the available health funding is allocated in clusters and caters primarily to specific groups, which exacerbates inequities in healthcare provision. Thirdly, the existence of multiple purchasing agents who operate concurrently to buy health services results in duplication and wastage of resources. Fourthly, the public financial management system, intended to support the swift distribution of public funds to health facilities, is not aligned with the requirements of the health system. Lastly, the devolved health setup has led to governance issues in managing the health sector. This study fills a significant gap in the literature on health financing within Pakistan and proposes a unique empirical approach using WHO's framework in a decentralized healthcare context. It also provides actionable recommendations for policymakers to develop strategies that improve the effectiveness of public financial management and health service delivery.

Community Leaders’ Financial Literacy Towards Sustainable Community in Malaysia

In the fast-paced world of the 21st century economic landscapes evolve rapidly and financial literacy has become vital for leaders across all sectors. It equips them to navigate complex financial environments, make informed decisions and adapt to economic shifts. In Malaysia, the government has formed the Community Leaders under the rural development program for village development. As a result of that, the Ministry of Rural and Regional Development has allocated resources to assist community programs. Therefore, these community leaders should be equipped with financial literacy to ensure that the financial resources are managed efficiently and effectively. Financial literacy is one of the most important requisites to financial well-being. It is also described as the measurement of how well an individual can understand and use information related to finance to make decisions. The objective of this study is to examine the needs of the Financial Literacy Model for community leaders. Further, it will also determine the components to be included in developing the Financial Literacy Model to enhance the public financial management system among community leaders. A mixed method research design, which combined qualitative (focused group interviews on selected community leaders) and quantitative (questionnaires) data will be employed in this research. Data analysis in qualitative research focuses on the process of systematically searching and arranging the interview transcripts. Interview sessions are crucial for gaining a thorough understanding of financial knowledge and skills among leaders. The research is anticipated to assist policymakers, community leaders and the government in improving sustainable community development.

How does Public Financial Management (PFM) influence health system efficiency: A scoping review.

Effective Public Financial Management (PFM) approaches are imperative in the quest for efficiency in health service delivery. Reviews conducted in this area have assessed the impact of PFM approaches on health system efficiency but have left out the mechanisms through which PFM influences efficiency. This scoping review aims to synthesize evidence on the mechanisms by which PFM influences health system efficiency. We searched databases of PubMed and Google Scholar and websites of the World Health Organization (WHO), World Bank and Overseas Development Institute (ODI) for peer-reviewed and grey literature articles that provided data on the relationship between PFM and health system efficiency. Three reviewers screened the articles for eligibility with the inclusion criteria. Data on PFM and health system efficiency was charted and summarized. We then reported the mechanisms by which PFM influence efficiency. PFM processes and structures influence health system efficiency by influencing; the alignment of resources to health system needs, the cost of inputs, the motivation of health workers, and the input mix. The entire budget process influences health system efficiency. However, most of the findings are drawn from studies that focused on aspects of the budget process. Studies that look at PFM in totality will help explore other cross-cutting issues within sections of the budget cycle; they will also bring out the relationship between the different phases of the budget cycle.

BUDGET DECENTRALISATION: RESULTS AND CURRENT CHALLENGES

The purpose of the paper is to analyse the results of budgetary decentralisation in Ukraine, to identify the factors that have the greatest impact on its success, and to identify the urgent tasks for improving the financial capacity of hromadas. Results. The article analyses the content of the strategies for reforming the public finance management system for 2017-2020 and 2022-2025, as well as the reports on the implementation of the Strategy for the period February 2017 – December 2019 and for 2022. The paper identifies the main achievements and unresolved issues of implementation of these strategies. The study highlights the factors that have the greatest impact on the success of the implementation of the tasks of reforming the public finance system. The coefficients of budgetary centralisation and decentralisation are calculated on the basis of expenditures of the Consolidated, State and local budgets. The article examines the results of a survey of local government representatives conducted in 2023 from April 27 to May 4 by the Kyiv International Institute of Sociology within the framework of the Sectoral Support Initiative for Civil Society in Ukraine project on the availability of post-war recovery plans in hromadas. Value / Originality. The undisputed results of the budget decentralisation for the period 2017-2020 include an increase in the volume of local budgets' own financial resources and a certain improvement in the quality of public services provided to consumers, but it is noted that the goals of the Strategy for Reforming the Public Finance Management System were not achieved during this period. The authors note a significant improvement in the quality of strategic planning in 2021 compared to 2016. It is emphasised that the implementation of most of the budgetary decentralisation measures planned in the latest Strategy was prevented by the full-scale war with Russia. Among the unresolved issues of the reform are the following: significant dependence of local self-government on central government transfers, duplication of functions by district and regional state administrations, low human and institutional capacity of local self-government bodies, and the procedure for administering local taxes. One of the urgent tasks of budgetary decentralisation is the need to develop and implement post-war reconstruction measures.

Texas Public Pensions: A Common Pool Resource Perspective

Public employee pension management is the nexus of public and private financial management systems that are significant long-term components of public finance. The idea that these pension systems can look quite similar yet perform in quite different and conflicting ways is significant when designing policy; system design templates are not successful in complex systems. Even pension systems within the same city can have radically different states of actuarial health based upon small differences in the rules (or adherence to the rules) establishing them. To better understand such systems, viewing them from a common pool resource perspective is useful. Elinor Ostrom (1990) , in her seminal book Governing the Commons, provides eight principles that facilitate governing common pool resources. The general theme running through Ostrom's principles is the need to facilitate the building and channeling of social capital. By facilitating constructive collective choice, the goal of effective, sustainable collective action is achievable. In this study, we examine the political, cultural, and institutional structures that are in place in the pension systems of Dallas and Houston, Texas. We examine the pensions’ governance practices to determine which appear to violate Ostrom's ideal institutional arrangements and their impact on the pensions’ long-term sustainability. Pertinent survey information from pension beneficiaries conducted as part of this research are provided

LEVERAGING ARTIFICIAL INTELLIGENCE (AI) IN PUBLIC SECTOR FINANCIAL RISK MANAGEMENT: INNOVATIONS, CHALLENGES, AND FUTURE DIRECTIONS

This paper examines the transformative role of Artificial Intelligence (AI) in enhancing financial risk management practices within the public sector in different context. With the increasing complexity of financial markets and the growing demand for transparency and efficiency in public finance management, traditional methods of risk identification and mitigation are proving to be inadequate. AI and machine learning technologies offer a promising alternative, with their ability to process vast amounts of data, recognize patterns, and predict future trends with a high degree of accuracy. We delve into the application of predictive models for identifying various financial risks, including credit, market, liquidity, and operational risks, and explore how AI algorithms can optimize decision-making processes through scenario analysis, resource allocation, and policy impact analysis. The paper also addresses the challenges associated with integrating AI into public financial management systems, such as data privacy concerns, the need for skilled personnel, and the importance of developing regulatory frameworks that ensure ethical use and transparency. By presenting case studies and real-world applications, this study highlights both the successes and failures of AI implementations in the public sector, providing valuable lessons learned and best practices. As AI technologies continue to evolve, this paper underscores the need for ongoing research and adaptation to fully realize their potential in making public sector financial risk management more proactive, efficient, and resilient.

Competency Mapping of Key Stakeholders in Procurement and Contracting of the National Tuberculosis Elimination Program Goods and Services in an Eastern Indian State

Abstract Background: The National Tuberculosis Elimination Program is a complex program, and the program officers are involved in the procurement and contracting of goods and services under it. A competency mapping was conducted to highlight the current capacity gaps in contract management at state and district levels under the program. Materials and Methods: A descriptive cross-sectional design was adopted with 15 participants involved in procurement and contracting in two districts of the state using a semi-structured questionnaire, and results were presented using the descriptive statistical analysis. Results: A total of 15 different stakeholders from the National Health Mission, State and District Tuberculosis (TB) Cell, State TB Training and Demonstration Centre, and State Medical Corporation participated in the study. The participants had an average of 10.3 years of experience in contracting, and 20% of them had received some training on contracting. The capacity of these respondents varied based on their involvement, previous training (s) received, and technical background. It was further observed that most of the respondents suggested an in-person physical training instead of virtual training. Most of the respondents requested to issue training certificate. Some of the topics that the participants requested for further training include Digital Signature Certification, Government e-Marketplace, General Financial Rule, Public Financial Management System, monitoring of performance indicators, and bid evaluation techniques. Moreover, 92% of the respondents felt that there is a training need on procurement and contracting. Conclusions: Many a time, the program officers come from a technical background not relevant to the contracting and procurement of goods and services and require regular on-the-job support and training to aid in effective program delivery.

Accounting for Non-Financial Assets in the Public Finance Management System in Ukraine during the Conflict

Accounting for Non-Financial Assets in the Public Finance Management System in Ukraine during the Conflict

THE USE OF ARTIFICIAL INTELLIGENCE TO IMPROVE PUBLIC FINANCE ACCOUNTING

The financial sector, as we know, is the driving force of the global economy. Along with the digital boom in the 21st century, this sector has also undergone drastic changes. What we had to work with in the last century is now becoming impossible for the digital generation. Artificial intelligence (AI) has revolutionized all industries, and the field of finance and accounting is no exception. Thanks to advances in machine learning, data analysis and automation, artificial intelligence is ready to change the way financial transactions are conducted. From optimizing decision-making processes to rationalizing everyday tasks, the future of AI in finance and accounting is both promising and transformational. Contemporary digital technologies leveraging artificial intelligence and big data exert a substantial influence across various facets of socio-economic life. Despite this, the realm of public finance management remains relatively untouched by digitalization. Nevertheless, this domain holds immense potential for the integration of big data and artificial intelligence, given its reliance on vast quantities of data, including unstructured information. Surprisingly, there exists scant exploration within scientific literature regarding the processes, mechanisms, and ramifications of digital technologies on public finance management. The primary objective of this article is to anticipate the potential shifts within the public finance management system over the medium and long term, precipitated by the adoption of digital technologies. Keywords: accounting, public finance, artificial intelligence, digital technologies, budget process, budget execution, public procurement.

AN ASSESSMENT OF THE EFFECTIVENESS OF THE INTERNAL AUDIT AT THE UNIVERSITY OF SIERRA LEONE

<p>Internal auditing is crucial for evaluating and improving internal control processes within government entities. Its primary objective is to assess the effectiveness and efficiency of internal controls, risk management, and governance processes. By identifying weaknesses and suggesting improvements, internal auditors contribute to better resource utilization and accountability. Internal audits can be conducted at various levels within the government, including central agencies, ministries, departments, or individual entities. This allows for a comprehensive examination of different aspects of government operations. Supreme Audit Institutions (SAIs) are independent governmental bodies responsible for conducting external audits of public sector entities. They assess the effectiveness and efficiency of financial management, compliance with laws and regulations, and the overall stewardship of public resources. While internal auditors focus on assessing internal controls and ensuring the reliability of financial information, SAIs provide an external perspective on the quality and impact of internal auditing within government entities. This collaboration helps promote good governance, transparency, and accountability in the use of public resources. A robust control system, which includes internal control, risk management, and audit functions, is essential for good governance. It helps safeguard public funds and maintain public trust. Adopting a risk-based approach to integrity and implementing targeted controls can enhance efficiency and effectiveness in resource utilization. Collaboration with citizens, the media, and non-governmental organizations further strengthens the functioning of the control system. This engagement enhances transparency and accountability and ensures that the government is responsive to the needs and concerns of the public. Internal and external auditing by SAIs are vital components of the public financial management system. They work together to assess and improve government operations, enhance accountability, and ensure the efficient use of public resources, ultimately contributing to good governance. In Sierra Leone, SAIs is likened to Audit Service Sierra Leone (ASSL). The concurrent triangulation approach is a specific mixed methods model used in this study. The research findings reveal that the internal audit department of the University of Sierra Leone is not adequately resourced to perform its functions effectively. However, segregation of duties and access to information is maintained but requires a functional audit committee, an increased number of competent auditors, and auditing software.</p><p><strong>JEL:</strong> H83, M42, H11, H72, H76, K42, O17</p><p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0771/a.php" alt="Hit counter" /></p>

Applying spending review theory to developing countries: The case of South Africa

ABSTRACT The seminal spending review (SR) theoretical framework by Catalano & Erbacci [2018. A theoretical framework for spending review policies at a time of widespread recession. OECD Journal on Budgeting 17(2), 9–24] draws on the cutback management and related academic literature to articulate the first theory for explaining the ability of medium-term SRs conducted after the global financial crisis of 2008 to effect targeted savings. This literature is however dominated by advanced economies with sophisticated public financial management systems. Comparatively little attention, however, has been paid to theoretical perspectives on developing countries, like South Africa. This article applies this theoretical framework by Catalano and Erbacci to the South African SR initiative in order to interrogate its theoretical and empirical relevance. Proposals are made for enhancing the operationalisation of the organisational and process dimensions of C&E’s theoretical framework to lay a foundation for future empirical research and its policy implications for South Africans SRs are explored.

Fiscal Policy for Inclusive Growth. A Case Study of Myanmar

Following decades of isolation under military rule, Myanmar initiated historic political reforms since 2011, but faces challenges translating liberalization into broad-based advancement. A dynamic stochastic general equilibrium modelling approach estimated on Myanmar data is used, with simulations quantifying potential growth and distributional impacts of strategic government expenditure reallocations towards infrastructure upgrading, agricultural investments, expanded social transfers and progressive tax reforms. Results indicate sustained infrastructure and rural productivity spending have high output multipliers while well-targeted transfers reduce income inequality. However, institutional absorptive capacities condition realization of social returns. Complementary governance enhancements like project oversight and competitiveness in public investment allocation prove vital. Regional peer benchmarking provides comparative lessons. Altogether, evidence-based fiscal reorientation towards addressing pressing human capital, rural-urban and firm competitiveness constraints can accelerate inclusive growth in Myanmar if pursued prudently. Sustainable expansion requires strengthening public financial management (PFM) systems and results monitoring.

ЦИФРОВІ ДИВІДЕНДИ ДІДЖИТАЛІЗАЦІЇ СИСТЕМИ УПРАВЛІННЯ ПУБЛІЧНИМИ ФІНАНСАМИ

The article examines and summarizes scientific approaches to the advantages and opportunities of implementing digital technologies in public finance management, which includes understanding the economic and social benefits that arise from digital decision-making, such as increased transparency, increased trust and increased efficiency. resource management. It was found that the transition to digital public finance management not only contributes to a more transparent and accountable government but also contributes to better decision-making processes and improved service delivery to the public. It analyzes in detail how digitalization ensures fiscal transparency, which increases the efficiency of the use of budget funds and public procurement processes with the help of modern digital tools, such as a single web portal for the use of public funds or an electronic public procurement system, and also positively affects the financial security of the state. In addition, the article examines the strengthening of the democratic participation of the public in the budget process, in particular, based on the implementation of the practice of participatory budgeting, to take into account the needs of citizens in public goods and services. It is emphasized that digitalization not only increases the quality of public services but also increases the effectiveness of budget policy as a whole. In addition, the significant impact of digital changes in the public finance management system on the growth of tax revenues and significant time savings of tax officials, other financial services, as well as taxpayers, which leads to an overall increase in productivity, has been investigated. The main focus is on the challenges that can hinder the successful realization of digital opportunities, including cyber security, digital divide issues, institutional capacity, etc., which require an integrated approach that takes into account technological, social, and regulatory aspects. It is emphasized that the successful implementation of digital dividends of digitalization of the public finance management system requires cooperation between the government, the private sector, and civil society.

Public Sector Accounting: A Theoretical and Global Perspective, With a Focus on Zimbabwe

This paper explores the key areas of public sector accounting, adoption of International Public Sector Accounting Standards (IPSAS) and the importance of standardized accounting practices to enhance transparency and accountability. The focus is on global trends, regional practices particularly on current status of Zimbabwe. Zimbabwe public sector accounting faces significant challenges, including inadequate financial transparency and accountability mechanisms. The country ranks low in cybersecurity, which further complicates financial management and data integrity. The study reviews theoretical approaches to public sector accounting, critical insights into financial transparency, accountability, governance and advancements. Research Method The study employed mixed methods involving a comprehensive literature review using thematic themes, interviews, and questionnaire surveys. Data were analyzed based on themes with the help of Excel to identify existing knowledge, trends, and challenges in public sector accounting. Findings Zimbabwe has been slow to adopt these standards, which hampers its financial reporting and governance. In addition, Zimbabwe faces challenges implementing IPSAS in the following areas: capacity building, governance, and investment in technology. In the Southern African region, the emphasis on improving public financial management systems is growing. Countries are increasingly focusing on integrating technology to enhance financial reporting and accountability. The key challenges identified were limited resources, lack of skilled personnel, and insufficient political will to implement necessary reforms. These factors contribute to the inefficiency of public financial management in Zimbabwe. Recommendations Zimbabwe should prioritize the adoption of IPSAS to improve its public sector accounting practices and enhance financial transparency. There is a need for training programs to develop the skills of public sector accountants and financial managers in Zimbabwe. In addition, implementing robust governance frameworks that promote accountability, transparency in public financial management, and invest in technology to improve financial reporting systems and cybersecurity measures.

Effectiveness of the Implementation of Fiscal Federalism at the Local Level

This study was carried out in the initial stage of the implementation of federalism which has adopted fiscal federalism. The current public finance management system adheres to intergovernmental fiscal transfer. During the study, civil servant adjustment by the federal government was ongoing. This study examines effectiveness of the implementation of fiscal federalism at the local level. It further analyses local level’s own source revenue. Following the Constitution of Nepal (2015), Local Government Operations Act (2017) defined Metropolitan, Sub-Metropolitan, Municipality, and Rural Municipality as Local Levels as well as Local Governments. The qualitative method was adopted to accomplish the study for fulfilling the effectiveness of implementation of fiscal federalism. Available literature and data were analysed and interpreted with relevant themes. Besides, some quantitative data have been presented for analysing the own source revenue of the local levels. The study found it interesting that not only the federal, and province governments transfer the budget to the local government, but the local governments also collect and share the budget for province governments. It seems top down transfer and bottom up sharing. Besides some confusion, conflict, and mismanagement, the effectiveness of implementation of the fiscal federalism seems positive because local governments are the nearest and dearest for people. Moreover, the own source revenue collection practice and tendency show that it will increase in future.

Доступность бюджетных инвестиций для регионов при программно-целевом подходе к формированию бюджетов (на примере муниципальных образований Архангельской области)

The article is devoted to the study of the availability of investment funds for the regions of investment funds of state development programs in the context of the program-targeted approach to budget formation. The use of program-targeted budgeting methods undoubtedly opens up extensive opportunities for optimizing the public finance management system, but the management tools and implementation mechanism at the regional level have not yet been sufficiently developed, which reduces the effectiveness of their application. The paper evaluates the uniformity of distribution of funds of the Targeted Investment Program of the Arkhangelsk Oblast for the period 20172021 between four districts that are similar in their parameters, as well as the distribution of budget investments within the framework of inter-budget transfers to local budgets of the Arkhangelsk Oblast for the period 20212023. The process and principles of a program-targeted approach to strategic planning and management of the public finance system as the main tool for improving the efficiency of budget expenditures are considered. The methods used in the study include analyzing the dynamics and structure of budget investment distribution, drawing conclusions on the basis of the obtained data about the uniformity of funds distribution and investment accessibility for the regions. This article can be useful for assessing the availability of budget investments when using the program-targeted approach to budget planning, as well as for developing an effective mechanism for implementing program-targeted budgeting approaches in the budget process at the local and regional levels.

Инструментарий зеленого бюджетирования и практический опыт его использования

Russia is following the course of implementation of the Sustainable Development Goals and shaping its climate strategy. In March 2023, Russia approved the National Action Plan for the second phase of adaptation to climate change for the period until 2025. The public budget is the main tool for achieving the political goals of the government, therefore, in order to implement the public policy in the field of environmental protection and counteraction to climate change, green budgeting is being introduced. The purpose of this article is to actualize the ideas of green budgeting, systematize such budgeting tools within the framework of the general concept of green budgeting, taking into account foreign experience of their use. The author uses general scientific methods, in particular methods of analysis and synthesis of relevant scientific literature, legal information and publications of international organizations. The following conclusions are made: The public budget system is able to minimize those economic activities that are adverse for the environment by creating the possibility of tracking, analysis, evaluation and adjustment of budget expenditures using the tools of green budgeting. The latter does not require restructuring of the public finance management system; the prerequisite for its practical use is the presence of environmental care among the state national goals.

Coverage, delays and implementation challenges of ‘Direct Benefit Transfer’ in the National Tuberculosis Elimination Programme – A mixed methods study

IntroductionFood insecurity and undernutrition both contribute to the large tuberculosis burden in India. Indian government rolled out the direct benefit transfer (DBT) programme “Nikshay Poshan Yojana” on a national scale on April 1, 2018 largely to provide nutritional support. Hence, it was proposed to take up this study in Western Maharashtra (Pune district) to study the coverage, delays and implementation challenges of ‘Direct Benefit Transfer’ in the National Tuberculosis Elimination Programme as there have only been a limited number of studies conducted regarding the same. MethodologyThis mixed methods study was conducted at Tuberculosis Units (TUs) under District Tuberculosis Officer (DTO) in Western Maharashtra (Pune district) for the duration August 2020 to September 2022. A total of 3373 participants were included for the quantitative component. For qualitative component In-depth interviews of key informants (healthcare providers involved in the implementation of Direct Benefit Transfer) and Focus Group Discussion (FGD) for patients and care givers was done and explored using thematic analysis. ResultsThe total coverage was found to be 76.81%. The health providers reported staff related challenges (overburden and non-cooperative staff), bank related issues (local and cooperate banks not involved in the Public Financial Management System (PFMS) loop and lack of bank account), patient related issues (fear of being scammed), the DBT process (lengthy and complex) and software related issues as major hurdles involved in the scheme's implementation. The challenges to the implementation of DBT reported by the beneficiaries (TB patients) were lack of awareness and disbelief about the scheme, bank related issues (lack of bank account and necessary documents to open account), financial challenges (job insecurity, loans), physical challenges (weakness) and delays in delivering the benefit due to software errors. ConclusionIn the present study the DBT coverage was very encouraging. The common challenges identified by the staff members and patients in the implementation of the scheme were lack of awareness about the scheme, bank related issues and software issues. To increase the coverage of DBT, it is vital that these issues be resolved.

Міжнародні стандарти статистики державного боргу та їх впровадження в систему управління державними фінансами України

Міжнародні стандарти статистики державного боргу та їх впровадження в систему управління державними фінансами України