Download presentation
Presentation is loading. Please wait.
1
Public Financial Management: Basic Concepts
A process of effectively handling the public purse By Arjun P. Pokhrel Joint FCG
2
PFM is all about public money
.
3
Presentation Outline PFM concept PFM Cycle Planning aspects of PFM
Budgeting aspects Audit and scrutiny Nature of PFM PFM issues in Nepal Reform areas
4
PFM Concept Public financial management is a system , processes and institutions to handling public purse in a prudence manner
5
The PFM Cycle Optimum utilization Planning /Policy Budgeting
Budget implementation. Accounting, recording and reporting Scrutiny and Audit
6
Planning Aspects of PFM
Long term plan : guide Medium Term Plans Annual plan, policy and programs Line ministry programs
7
Budgeting Aspects .
8
Budgeting: Converting Programs into monetary term
Budget Formulation: Deciding Budgetary ceiling Circulation of ceiling Preparation of budget by line agencies Negotiations Accumulation : expenditures and revenues Presentation before parliament Parliamentary Approval
9
Budgeting..................... 2. Budget Execution: authorization
procurement revenue collection , loans and grants accounting , recording and and reporting internal control
10
Audit and Scrutiny Internal Audit: judging the sufficiency of internal control system and suggesting for ongoing corrections External Audit: overall financial judgment for future corrections and reforms Parliamentary Scrutiny: Audit over auditors and corrections over the policies External scrutiny: correction over the behaviors , for eg. CIAA Peoples' voice : overall correction
11
Nature of PFM PFM is a creature of law .Due process is always necessary Results should be targeted towards the people at large Public accountability is the heart of PFM It is the fundamental pillar of governance
12
Issues of PFM in Nepal Planned vs ad hoc Budget: incremental
Due process breached? Results neglected Problems in procurement Weak accounting , recording and reporting Lack of performance audit Parliament missing : frequent Weak governance: utilization of resource Articulating peoples' voice
13
Reforms Areas MTEF/MTBF Timely budget: budget law?
Treasury management : core TSA IFMIS Procurement practices reforms Accounting Reforms: NPSAS ,commitment acc. Internal Audit Reforms and focus on performance audit Parliament and people voice Greater Transparency
14
Discussion Session YOUR QUESTIONS?
15
. Thank You
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.