PEFA, Public Financial Management, and Good Governance
PEFA, Public Financial Management, and Good Governance

Author: Jens Kromann Kristensen

Publisher: World Bank Publications

Published: 2019-11-24

Total Pages: 168

ISBN-13: 146481466X

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This project, based on the Public Expenditure and Financial Accountability (PEFA) data set, researched how PEFA can be used to shape policy development in public financial management (PFM) and other major relevant policy areas such as anticorruption, revenue mobilization, political economy analysis, and fragile states. The report explores what shapes the PFM system in low- and middle-income countries by examining the relationship between political institutions and the quality of the PFM system. Although the report finds some evidence that multiple political parties in control of the legislature is associated with better PFM performance, the report finds the need to further refine and test the theories on the relationship between political institutions and PFM. The report addresses the question of the outcomes of PFM systems, distinguishing between fragile and nonfragile states. It finds that better PFM performance is associated with more reliable budgets in terms of expenditure composition in fragile states, but not aggregate budget credibility. Moreover, in contrast to existing studies, it finds no evidence that PFM quality matters for deficit and debt ratios, irrespective of whether a country is fragile or not. The report also explores the relationship between perceptions of corruption and PFM performance. It finds strong evidence of a relationship between better PFM performance and improvements in perceptions of corruption. It also finds that PFM reforms associated with better controls have a stronger relationship with improvements in perceptions of corruption compared to PFM reforms associated with more transparency. The last chapter looks at the relationship between PEFA indicators for revenue administration and domestic resource mobilization. It focuses on the credible use of penalties for noncompliance as a proxy for the type of political commitment required to improve tax performance. The analysis shows that countries that credibly enforce penalties for noncompliance collect more taxes on average.

Liberia
Liberia

Author: International Monetary Fund. Fiscal Affairs Dept.

Publisher: International Monetary Fund

Published: 2012-09-18

Total Pages: 100

ISBN-13: 1475510640

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At the request of the Government of Liberia (GoL), the IMF Fiscal Affairs Department (FAD) led an external assessment of the central government’s public financial management (PFM) systems based on the Public Expenditure and Financial Accountability (PEFA) methodology. The assessment was undertaken in close collaboration with the Ministry of Finance’s (MoF) PFM Reform Coordination Unit (RCU), with the participation of staff of the African Development Bank and the World Bank, and with financial support from the European Union and Sida. The assessment examines progress since the PEFA assessment of 2007 and provides a renewed baseline for monitoring progress in PFM reform and for supporting the GoL in refining, where necessary, the current PFM reform strategy. The assessment snapshot date was April 23, 2012. The report was reviewed by the GoL, the PEFA Secretariat, a donor reference group, and FAD, the latter being at the same time responsible for quality assurance.

Assessing and Reforming Public Financial Management
Assessing and Reforming Public Financial Management

Author: Richard Allen

Publisher: World Bank Publications

Published: 2004

Total Pages: 166

ISBN-13: 9780821355992

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This study compares the various instruments and approaches used by the World Bank, the European Commission, the International Monetary Fund, the Strategic Partnership for Africa and several bilateral donor agencies to assess and reform public expenditure management systems in developing and transitional countries. It identifies weaknesses in the current system and recommends a new medium-term, country-led, multidonor approach which is focused on better budgetary management supplemented by donor aid funds, as a key mechanism to reduce poverty and attain other policy goals.

Public Financial Management and Its Emerging Architecture
Public Financial Management and Its Emerging Architecture

Author: Mr. M. Cangiano

Publisher: International Monetary Fund

Published: 2013-04-05

Total Pages: 468

ISBN-13: 1475512198

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The first two decades of the twenty-first century have witnessed an influx of innovations and reforms in public financial management. The current wave of reforms is markedly different from those in the past, owing to the sheer number of innovations, their widespread adoption, and the sense that they add up to a fundamental change in the way governments manage public money. This book takes stock of the most important innovations that have emerged over the past two decades, including fiscal responsibility legislation, fiscal rules, medium-term budget frameworks, fiscal councils, fiscal risk management techniques, performance budgeting, and accrual reporting and accounting. Not merely a handbook or manual describing practices in the field, the volume instead poses critical questions about innovations; the issues and challenges that have appeared along the way, including those associated with the global economic crisis; and how the ground can be prepared for the next generation of public financial management reforms. Watch Video of Book Launch

Securing Development
Securing Development

Author: Bernard Harborne

Publisher: World Bank Publications

Published: 2017-03-01

Total Pages: 334

ISBN-13: 1464807671

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Securing Development: Public Finance and the Security Sector highlights the role of public finance in the delivery of security and criminal justice services. This book offers a framework for analyzing public financial management, financial transparency, and oversight, as well as expenditure policy issues that determine how to most appropriately manage security and justice services. The interplay among security, justice, and public finance is still a relatively unexplored area of development. Such a perspective can help security actors provide more professional, effective, and efficient security and justice services for citizens, while also strengthening systems for accountability. The book is the result of a project undertaken jointly by staff from the World Bank and the United Nations, integrating the disciplines where each institution holds a comparative advantage and a core mandate. The primary audience includes government officials bearing both security and financial responsibilities, staff of international organizations working on public expenditure management and security sector issues, academics, and development practitioners working in an advisory capacity.

Expenditure Control
Expenditure Control

Author: Sailendra Pattanayak

Publisher: International Monetary Fund

Published: 2016-04-20

Total Pages: 32

ISBN-13: 1513574639

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This paper defines and explains key stages of the government expenditure chain and describes the controls applied at each stage, including their objectives and key features as well as centralized vs. decentralized approaches in application of those controls. The paper also examines the influence of different administrative traditions on types of expenditure controls, including the authority and responsibility of various institutional actors. Finally, it discusses typical weaknesses/problems associated with different traditions of expenditure control and suggests specific measures for strengthening the control framework. While providing examples of expenditure control practices from more than 32 countries, the paper points out that more than two-thirds of the 85 low and middle income countries covered by the publicly available Public Expenditure and Financial Accountability (PEFA) assessments have weak systems of expenditure control that are also associated with higher levels of expenditure arrears and a lack of budget credibility. This paper will help public financial management practitioners to evaluate budget execution systems and identify priorities for strengthening expenditure controls. It will also usefully guide technical assistance work related to modernization of government budget execution and expenditure control systems, including the design and implementation of IT-based financial management information systems.

Antigua and Barbuda
Antigua and Barbuda

Author: International Monetary Fund. Fiscal Affairs Dept.

Publisher: International Monetary Fund

Published: 2015-02-04

Total Pages: 96

ISBN-13: 1498356095

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The purpose of this Public Expenditure and Financial Accountability (PEFA) performance assessment is to provide an objective analysis of the present performance of the public financial management system in Antigua and Barbuda, and identify changes incurred since the last PEFA assessment undertaken in 2010. In the wake of a prolonged economic crisis, fiscal outcomes have not been consistent with the budget as approved. Central government public finances are comprehensively presented in budget documents, but some weaknesses persist. New policy initiatives and their budgetary implications are not sufficiently analyzed; a significant share of extra-budgetary expenditures remains unreported; and oversight and reporting requirements of statutory bodies are not yet fully enforced, impeding a comprehensive assessment of the associated fiscal risks. Although the revenue administration has been strengthened over the last years, the control over budget execution is still weak. There have been improvements in the quality of external audit, but lack of Parliamentary scrutiny undermines the accountability framework.

Transparency in Government Operations
Transparency in Government Operations

Author: Mr.J. D. Craig

Publisher: International Monetary Fund

Published: 1998-02-03

Total Pages: 50

ISBN-13: 155775697X

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Transparency in government operations is widely regarded as an important precondition for macroeconomic fiscal sustainability, good governance, and overall fiscal rectitude. Notably, the Interim Committee, at its April and September 1996 meetings, stressed the need for greater fiscal transparency. Prompted by these concerns, this paper represents a first attempt to address many of the aspects of transparency in government operations. It provides an overview of major issues in fiscal transparency and examines the IMF's role in promoting transparency in government operations.

Guidelines for Public Expenditure Management
Guidelines for Public Expenditure Management

Author: Mr.Jack Diamond

Publisher: International Monetary Fund

Published: 1999-07-01

Total Pages: 84

ISBN-13: 9781557757876

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Traditionally, economics training in public finances has focused more on tax than public expenditure issues, and within expenditure, more on policy considerations than the more mundane matters of public expenditure management. For many years, the IMF's Public Expenditure Management Division has answered specific questions raised by fiscal economists on such missions. Based on this experience, these guidelines arose from the need to provide a general overview of the principles and practices observed in three key aspects of public expenditure management: budget preparation, budget execution, and cash planning. For each aspect of public expenditure management, the guidelines identify separately the differing practices in four groups of countries - the francophone systems, the Commonwealth systems, Latin America, and those in the transition economies. Edited by Barry H. Potter and Jack Diamond, this publication is intended for a general fiscal, or a general budget, advisor interested in the macroeconomic dimension of public expenditure management.