Posted by Gelardina Prodani and Hakan Ay1
From March 3-6, 2014, 20 countries representing the PEMPAL Budget Community of Practice (BCOP) in cooperation with the Ministry of Finance of Turkey gathered in Antalya, Turkey for BCOP’s annual plenary meeting.2 The agenda focused on country experiences with results-based monitoring and evaluation (RBME). David Shand, an international expert in this area, acted as the facilitator for the meeting.
The meeting was formally opened by Mr. Ilhan Hatipoglu, the Director General of Budget and Fiscal Control in the Ministry of Finance of Turkey, and Mr. Martin Raiser, Director of the World Bank in Turkey.
Continue reading "PEMPAL Meeting on Results-Based Monitoring and Evaluation" »
Posted by Ingvar Mattsoni
An unusual political conflict occurred in Sweden in the autumn of 2013. The conflict triggered a fierce debate on fiscal rules between the political parties in the Swedish Parliament, the Riksdag. This is unusual because consensus on fiscal rules has prevailed since the fiscal policy framework was reformed after the economic crisis in the 1990s.
Continue reading "Formal vs. Informal Fiscal Rules: Lessons from Sweden" »
Posted by Sanjeev Gupta and Michael Keen
These are difficult times for ministers of finance. Fiscal constraints are tight and raising economic growth a priority. At the same time, income inequality is on the rise, and so is public pressure for governments to do something about it through their tax and spending policies. What’s a minister to do? How can he or she meet these seemingly incompatible demands?
Continue reading "Meeting Rising Pressures to Address Income Inequality—A User’s Guide" »
Posted by Yugo Koshima and Olya Kroytor1
Many budget system laws include provisions to impose sanctions in cases of financial non-compliance during the budget execution process. Historically, most legal frameworks have involved sanctions on individual officers, rather than on the spending agencies they are working for. Although enforcement of financial regulations is often buttressed by sanctions, sanctions often end up as a last resort solution and in practice are rarely exercised. So, what should an effective sanctions regime look like under a modern budget system law? Reflecting on this question, it is helpful to explore legal developments in several jurisdictions.
In some countries, sanctions under the budget system law center on the notion of strict personal liability of individual officers in the payment process. In brief, “strict liability” means that a person is legally responsible for the damage or loss regardless of fault (negligence or intentional act). For example:
Continue reading "How to Enforce Sanctions against Financial Non-Compliance" »
Posted by Carlos Pimenta and Mario Pessoa
A high-level seminar, bringing together treasurers and accountant generals of Latin American and Caribbean countries, was held in Washington DC on February 12-14. The participants discussed key issues on treasury management and public sector accounting, and defined a common agenda to facilitate future coordination and technical developments.
Continue reading "Treasury Management and Government Accounting" »
Posted by David Nummy, ICGFM Vice-President for Programs
One outcome of the global financial crisis has been the recognition that improved Public Financial Management was critical to management of the crisis as well as part of future prevention efforst. New approaches to the core elements of the PFM cycle have been employed and interest has grown in better methods to effectively manage resources. ICGFM will explore the innovations in PFM that have emerged as well as practices that are recognized as effective at its upcoming 28th Annual International Training Conference in Miami from May 19-23, 2014.
Continue reading "ICGFM Issues Call for Speakers for 28th Annual Training Conference, May 19-23, 2014, Miami, Florida, USA" »
The World Bank Group (WBG)’s Poverty Reduction and Economic Management Unit (PREM) in the Europe and Central Asia (ECA) Region handles the region’s work on economic policy, public sector management and governance, social inclusion, and access to equal economic opportunities. In Romania, the Bank supports public sector and institutional modernization through a range of activities, including lending programs and Reimbursable Advisory Services (RAS).
Continue reading "Job offer: Senior Public Sector Management Specialist in Bucharest, Romania (World Bank #140135)" »
Posted by Johann Seiwald1
Since the late 1980s, many governments have moved away from traditional Public Administration (PA) systems – which highlight the importance of hierarchy, legal rules, and a clear division of labor within the administrative system - in favor of the New Public Management (NPM) model. More recently, a new “Public Governance” (PG) model has emerged which emphasizes concepts and values such as accountability, transparency and participation (see box below). One model does not necessarily supplant the others. In some countries, elements of all three models coexist, and can complement each other.
Continue reading "Matching the Talk to the Walk?" »
Posted by Guy Anderson and Yasemin Hurcan1
The East AFRITAC member countries (Eritrea, Ethiopia, Kenya, Malawi, Rwanda, Tanzania and Uganda) have been progressively rationalizing their banking arrangements and strengthening their cash management techniques. These improvements have been enabled by the wider use of financial management information systems (FMIS), improved banking systems and increased connectivity. However, despite some notable successes, the banking and cash management regimes in many of the countries continue to underperform. Problems include: significant government-controlled bank balances outside of the computed cash position; unreliable cash forecasting; and the passive use of cash management instruments. The result has been higher borrowing costs, a reliance on cash rationing techniques to determine budget releases, difficulties in planning and implementing the approved budget, and an increased risk of accumulating payment arrears.
Continue reading "Effective Cash Management in East Africa" »