Description
Foundations of Public Finance Management provides a useful basis to think and analyse PFM issues and meaningfully discuss solution options through the use of simple analytical frameworks,. It takes into account both the system dimensions of formal PFM institutional practice as well as the political economy elements that can complicate and obscure PFM practice in a given country. The emphasis on an analytical framework approach provides the participant with relevant and effective tools to assess and understand a given country´s PFM rather than simply provide a menu of best practice options that may or may not be relevant in a given developing country.
The professional development workshop covers the PFM context – the macroeconomic context, the political context and the financial administrative network upon which the PFM systems operate. It identifies the budget instrument of policy implementation. It specifically covers strategic planning, budget formulation – introducing Medium Term Expenditure Frameworks (MTEF), budget classification, the budget process, budget releases and cash management, predictability and control in budget execution, budget and expenditure control, payroll management, procurement, and internal audit. It also touches upon revenue management, debt management, simple accounting and financial reporting. This introductory course also looks at parliamentary oversight and audit.
The course ends with a survey of development partner aid modalities and assists participants to research and report on topical areas of PFM including Public Private Partnerships, Performance Auditing, MTEFs, Accrual Accounting, IFMIS and a host of other topics.
Learning outcomes
By the end of the course participants should:
• Be aware of the complex nature of PFM reform – the political dimension, the macro-economic context, the legal and regulatory framework, the institutional framework, the constraining dimension of functional linkages and the financial administration network
• Understand what is meant by political economy analysis
• Be equipped with some basic frameworks for identifying the strengths and weaknesses of a country’s PFM systems.
• Be equipped with some basic analytical frameworks for looking at Public Finance Management – based upon the objectives for sound PFM: fiscal discipline, allocative efficiency and technical efficiency.
• Understand Budget Formulation; Budget Classification; Budget Preparation; Budget Execution encompassing Budget Releases, the Treasury Single Account, Commitment Control Systems, Establishment Control, the Expenditure Cycle, elements of payroll management and procurement, Financial Management and Reporting, and Internal Control; External Audit and Parliamentary Oversight
• Understand elements of revenue management (tax, non tax, royalties, grants and dividends) as well as debt management
• Appreciate the rationale for the different aid modalities adopted by the Development Partners
• Be able to question the nature of relevance of some popularly promoted PFM reforms – such as performance budgeting, budgeting by objectives, activity based budgeting, the use of MTEF, accrual accounting, IFMIS, and public-private partnerships.
Learning methods
The learning methods will include the following
• Introduction to key concepts through the “teaching and discussion” methods
• The use of original source material of key writers/thinkers in this area (to show that it is a subject, outside the “donor world”)
• The use of extensive examples from many different countries with different experiences to illustrate the points put across
• The use of exercises (in particular short "buzz-group" sessions) to provoke and consolidate certain points raises
• The use of major case studies –to illustrate in more detail some of the key points of the course.