18 Key Principles of PFM Reform

Posted by Hisham Waly[1]

While circumstances vary from country to country, I have found that there are some generic principles for PFM reform.  I have drawn these principles from my personal experience (inside and outside the World Bank) and readings (see list of resources at the end of the article).

GFSM Manual

Purpose of the Government Finance Statistics Manual 2014 (GFSM 2014)

 The GFSM 2014 is an international methodological standard primarily for data compilers to prepare comprehensive government finance statistics “fit for use” for policy analysis. It describes concepts, definitions, accounting rules, classifications, and standard data presentation.

Interview with Phil Sinnett, former PEFA Head

Posted by Richard Allen[1]

Phil Sinnett recently retired as the Head of the Public Expenditure and Financial Accountability (PEFA) Secretariat, returning to live in South Africa. In this post, I interviewed Phil on his experiences of working for PEFA and his plans for the future.

Increasing Extractive Industry Revenues

Posted by Katherine Baer[1]

On Monday, July 28^th, the IMF’s Fiscal Affairs Department (FAD) launched a new book: Administering Fiscal Regimes for Extractive Industries: A Handbook, by Jack Calder[2] [Available here!]

Public Consultation for Updating the PEFA Indicators

Posted by the PEFA Secretariat

The Public Expenditure and Financial Accountability (PEFA) Program, launched in 2001, has created a credible and comprehensive framework for assessing PFM functionality, which has been applied in a large number of countries since 2005—countries with different income levels, different administrative heritages, and in different geographical regions.

IMF’s new Fiscal Transparency Code and Evaluation

   

Posted by Sailendra Pattanayak[1]

The IMF has just published a new Fiscal Transparency Code which replaces the earlier 2007 version. The new Code sets the standards for the disclosure of information on governments’ financial positions, prospects and risks, and is built around four pillars covering the key elements of fiscal transparency. These pillars are: (i) fiscal reporting; (ii) fiscal forecasting and budgeting; (iii) fiscal risk analysis and management; and (iv) resource revenue management. While the first three pillars of the new Code, containing 36 principles, have been published [ Download FT CODE (PDF)], the fourth pillar on resource revenue management will be completed by mid 2015 following a separate consultation process with key stakeholders.

IMF Guide on External Debt Statistics

Posted by Rita Mesías[1]

The 2013 EDS Guide[2] is now available in hard copy (see http://www.tffs.org/edsguide.htm). It provides guidance on (1) the concepts, definitions, and classifications; (2) the sources and techniques for compiling; and (3) the analytical uses of external debt statistics (EDS).

This is PFM – Looking Good but Does it Work?

 

Posted by Richard Allen

An interesting new working paper[1] by an eclectic group of experts from Harvard University, the IMF, the World Bank, the Overseas Development Institute, the International Budget Partnership, and the Collaborative African Budget Reform Initiative (CABRI) casts new light on the meaning of PFM and approaches to reforming it. As the paper notes, it is encouraging that experts from such diverse organizations and arenas can agree—to some extent at least—on the basics of PFM. The paper coincides with the publication by the OECD of its Ten Principles of Budgetary Governance[2], a document that provides a solid overview but is more conventional in scope and focus.