State Budget Control at your Fingertips--Financial Management Information Systems Have Modified Public Finance Management in the State of Sao Paulo - Brazil

Posted by Mario Pessoa

The Brazilian State of Sao Paulo has implemented a set of financial information systems in the 1990s and 2000s to enhance transparency and reliability of fiscal data. Two of the most relevant systems are: SIAFEM and SIGEO.

The first one is a typical integrated financial management information system (IFMIS) that encompasses all fiscal transactions from the budget preparation and execution to the preparation of the financial statements. SIAFEM is used by more than 5,000 civil servants of 800 entities. All budgetary transactions have to be done using the system. Additionally, SIAFEM is linked to a treasury single account. The general ledger is the core of the system that uses the same economic classification for both budget and accounting purposes. All reports regarding the fiscal responsibility law and the financial statements are generated by the system.

Sao Paulo is also using an IT tool to enable the preparation of tailor made reports. SIGEO (Budget Execution Management Information System) gives to managers a flexible instrument to combine information stored in multiple systems to produce reports and help the managers in the decision making process regarding allocation of funds, comparison of costs, and evaluation of programs and projects.

Both systems can be accessed by parliamentarians, external auditors, the media, and the society as a whole through the Internet, but it seems the interest is smaller than imagined when the project was designed. So, a clear strategy to enhance public participation is needed. The State of Sao Paulo is also implementing a strategic planning to improve the quality of the services provided to the population and the transparency of its accounts.

For more information on the way the State of Sao Paulo manages its finances visit the Secretary of Finance website (information is in Portuguese only.) or read the following document: Download sp_article_siafem.doc