Public Finance Management

The importance of good public financial management (PFM) for the effectiveness and efficiency of a state has become increasingly clear over the years. Good PFM supports good governance and transparency, and it is crucial for the effective delivery of services, on which human and economic development rely. For this reason, PFM is considered a priority for many states, which are oriented towards making prudent fiscal decisions, developing and adopting reasonable budgets, establishing reliable and efficient resource flows and transactions, and institutionalizing accountability.

We share such views about the critical importance of having robust PFM systems in place and acknowledge their value in public sector management. We work with state institutions to increase understanding of the necessity of a strong level of political commitment to reform implementation, to tailor the design and implementation of models according to the institutional and capacity context, and to pinpoint the vitality of robust coordination arrangements for monitoring and guiding reform process.

With these objectives in mind, informed by the experience within a country or within a region, and through broader international understanding, we support states to develop policy frameworks and procedures for modern PFM systems built on advanced methodologies and innovative approaches, based on modern information and communication technologies enabling sustainable, efficient, effective, and transparent management of public finances.

In our work with state budgetary institutions, based on an in-depth understanding of political context, we establish the institutional and organizational needs for reforming public sector management processes into well-functioning, efficient, transparent, and sustainable mechanisms.

Our PFM portfolio today entails various aspects of PFM, including the following types of services:

  • Medium-Term Budget Frameworks (MTBFs)
  • Program-Based Budgeting, Budget Preparation, Execution, and Reporting
  • Budget Monitoring and Evaluation Systems
  • Macroeconomics and Fiscal Forecasting
  • Development of Financial Management Systems
  • Public Expenditure and Financial Accountability (PEFA)
  • Tax and Customs Policy
  • Public Investment Financing and Management
  • Public Debt Management
  • Fiscal Risk Management
  • Cash Planning and Management
  • E-budget, E-treasury
  • Procurement Systems
  • Sectoral Analyses, Strategic Planning, and Budget Financing
  • Audit and Accountability Systems
  • Public Sector Accounting Standards (IPSAS)
  • Domestic Revenue Mobilization
  • Institutional Reforms
  • Capacity Building of Central Government Agencies, the Ministry of Finance, as well as Line Ministries, and Regional and Local Authorities in PFM