Topic Guide: Public Financial Management

United Nations Convention against Corruption (UNCAC). United Nations Office on Drugs and Crime, 2002. https://www.unodc.org/documents/treaties/UNCAC/Publications/Convention/08-50026_E.pdf  

The convention introduces a comprehensive set of standards, measures and rules to strengthen countries’ legal and regulatory regimes to fight corruption. It calls for preventive measures and the criminalisation of the most prevalent forms of corruption in both public and private sectors. Article 9 specifically addresses measures to PFM systems, including: a) procedures for the adoption of the national budget; b) timely reporting on revenue and expenditure; c) a system of accounting and auditing standards and related oversight; d) effective and efficient systems of risk management and internal control; and e) where appropriate, corrective action in the case of failure to comply with the requirements of the convention. State parties are also called to take measures to preserve the integrity of accounting books, records, financial statements or other documents related to public expenditure and revenue and to prevent the falsification of such documents.  

IMF fiscal transparency code (2014 version). International Monetary Fund, 2014. http://www.imf.org/external/pubs/ft/survey/so/2014/pol080714a.htm  

The International Monetary Fund (IMF) recently released a revised version of the fiscal transparency code. Since they were first published in 1998 and last updated in 2007, the IMF’s Code of Good Practices on Fiscal Transparency and accompanying manual and guide have been centrepieces of global fiscal transparency standards. The revised code includes a principle on public participation: “The government provides citizens with an accessible summary of the implications of budget policies and an opportunity to participate in budget deliberations.”  

OECD principles of budgetary governance. OECD Senior Budget Officials, 2014. http://www.pempal.org/data/upload/files/2014/07/oecdsbo_ho-session-4-updated-draft-principles-of-budgetary-governance-r.-downes-den-haag-2014.pdf  

The OECD has recently published a document outlining 10 principles of budgetary governance. These include, among others, that: “All budget reports should be published fully, promptly and routinely, and in a way that is accessible to citizens”, requiring that budget documents be available online, and that all budget data be presented in open data formats which can be readily downloaded, analysed, used and represented by citizens, civil society organisations and other stakeholders. Principle 4 also stresses the importance of transparency, calling for budget documents and data to be open, transparent and accessible. The recent OECD principles of budgetary governance complement and update the 2002 OECD best practices for budget transparency: integrity, control and accountability.  

GIFT high-level principles on fiscal transparency. Global Initiative for Fiscal Transparency (GIFT), 2012. http://fiscaltransparency.net/2012/11/high-level-principles-on-fiscal-transparency/  

GIFT has developed high-level principles on fiscal transparency which were adopted by the UN General Assembly in December 2012. UN member states are encouraged to intensify efforts to enhance transparency, participation and accountability in fiscal policies. These principles state, inter alia, that “...access to high quality information, meaningful public participation and effective accountability mechanisms” is believed to “enhance the integrity, quality and implementation of fiscal policies; [and to] reduce corruption”. To this end, principle 10 states that: “Citizens should have the right and they, and all non-state actors, should have effective opportunities to participate directly in public debate and discussion over the design and implementation of fiscal policies”.

Inter-American convention against corruption (IACAC). Organisation of American States, 1996. http://www.oas.org/juridico/english/treaties/b-58.html  

The main objectives of IACAC are: (a) to promote and strengthen the development of the mechanisms needed to prevent, detect, punish and eradicate corruption; and (b) to promote, facilitate and regulate cooperation among the member states to ensure the effectiveness of measures and actions in place to fight corruption. The IACAC includes relevant preventive measures to curb corruption in PFM systems. In particular, Article III refers to PFM areas such as: 1) internal controls and maintenance of books of account; 2) conservation and proper use of public resources; 3) procurement of goods and services and the execution of works; 4) revenue collection and control; and 5) participation of civil society.  

African Union convention on preventing and combating corruption (AUCPCC). African Union, 2003. http://au.int/en/content/african-union-convention-preventing-and-combating-corruption  

The AU convention is a comprehensive regional treaty criminalising the multiple facets of corruption and requiring signatory states to prevent, detect, punish and eradicate corruption and related offences in the public and private sector. Moreover, it lays out a framework for international cooperation and mutual legal assistance to effectively combat corruption and recover stolen assets. Principles of the AU convention relevant to PFM include in Article 3: transparency and accountability in the management of public affairs. In Article 5: legislative and other measures. Signatory countries undertake to: adopt legislative and other measures to create, maintain and strengthen internal accounting, auditing and follow-up systems, in particular, in the public income, custom and tax receipts, expenditures and procedures for hiring, procurement and management of public goods and services.