Public Financial Management & Budgeting
This introductory course on PFM aims to provide a basis for better understanding of core concepts, objectives and issues in PFM. It considers the context of PFM as well as the “upstream” and “downstream” stages of the budget. A particular focus of the course – both in the core material and the discussions – will be to examine how PFM arrangements impact on budgetary outcomes and the objectives of aggregate fiscal discipline, allocative efficiency and operational efficiency.
· Explain the major dimensions of the internal and external context of PFM;
· Understand the linkages between broad policy objectives and fiscal & expenditure management;
· Describe some of the basic principles of tax policy.
· Understand the meaning and relevance of the three main objectives of PFM and how they are linked;
· Distinguish the three main types of budget: cash, commitment and accrual.
· Discuss the advantages and difficulties associated with the concept of performance budgeting;
· Appraise the system of budget classification used in your country;
· Summarize the key issues relating to budget coverage, fiscal risk and fiscal responsibility
· Understand the process and characteristics of good budget preparation.
· Appraise the role of the legislature in the upstream stages.
· Summarize the key issues relating to medium term expenditure programming
· Outline the characteristics of a realistic and well-integrated Public Investment Program.
· Understand the PEFA PFM Performance Measurement Framework.
Review and assess your country’s latest PFM PEFA Assessment.
Context of Public Financial Management
This provides an overview of the major dimensions of the internal and external context of PFM as well as the policy, macroeconomic and fiscal context. The unit ends by examining the revenue side with focus on the basic principles of tax policy and tax administration. of the basic principles of tax policy.
Concepts, Objectives and Systems
Introduction to the basic concepts and objectives of PFM before examining budget types, budgeting systems and classifications. It also considers budget coverage and the impact of the government’s financial actions on the future fiscal situation of the country.
The “Upstream” Stages: Preparing the Budget
To budget is to choose, and the fundamental basis of a good budget preparation is thus an “availability” approach rather than a “needs” approach.
This module explores the process of budget preparation, including the role of the legislature. It also explains the need for a multiyear fiscal perspective, mainly in order to assure its sustainability avoid short-sighted decisions and provide a financial perspective against which to decide major changes in government policy.
Assessing and Developing PFM Systems
The final module describes and explains Public Expenditure and Financial Accountability (PEFA) using the PEFA Performance Measurement Framework
Senior officials tasked with designing and implementing reform initiatives in their countries. Leaders with responsibility for budgets, internal or external audits, and financial controls in Ministries of Finance and line agencies, as well as legislative branches of government, will benefit from this program.