Topic Guide: Public Financial Management

PFM reforms have typically focused on achieving and securing overall economic and fiscal stability, allocative efficiency and operational efficiency[1]. To this end, PFM reforms mostly prioritise technical approaches to improve the performance of the PFM systems, including through the integration, modernisation and automation of PFM processes, revenue collection, public expenditure management and procurement systems. They traditionally include measures aimed at streamlining budget processes, supporting revenue administration, improving procurement processes and strengthening external oversight. While these reforms are not primarily aimed at curbing corruption, there is a broad consensus that they can help prevent and detect misuse of public resources through streamlined processes, increased transparency and stronger oversight.

Recent trends in PFM reforms call for moving beyond technical reforms and paying more attention to transparency, accountability and public participation in PFM. Global initiatives, such as the Open Government Partnership, the Global Initiative for Fiscal Transparency (GIFT) and the International Budget Partnership, are working for this purpose. Traditional PFM reform promoters like the World Bank, IMF, OECD, regional development banks and bilateral donors are also updating their standards, benchmarks and principles to put more emphasis on transparency, accountability and public participation in PFM. While not specifically focused on fighting corruption, such approaches may result in new forms of cooperation between government, the private sector and civil society and create new opportunities and tools to curb corruption in PFM.