1. PFM: A Synopsis Dr Rupinder Singh June 24 th 2013

2. Context Economy Public Finances Policy: Growth and PRSP

3. What does PFM Cover? Budget Preparation: Revenue and Expenditure Execute Budget: Current and Capital Expenditure Public Procurement External Audit and Accountability

4. PFM Life Cycle

5. Examples of PFM Interventions General Country Strategies, PRSP/NDP, Sector eg Regional Strategies + Market Failure? Budget Support operations cross-sectoral Fiscal De-centralisation, Regional Policy & Supply Side Economics – financial regln+state aid Debt Management & Revenue side Upstream Budget Preparation – codes, classifications, nuts and bolts Fiscal-mix and fiscal policy: CSP, fiscal-monetary mix, MAFF, MTEFs Forecasting Downstream Cash management, Treasury systems, Payroll Financial reporting, Internal audit, debt management External Audit, PACs, Evaluations and performance audit Donor co-ordination (Debt and Grants)

7. PFM Context Generally Context: fiscal space an issue everywhere LDCs and LICs: increased vulnerabilities (macro-fiscal, climatic, commodities) Volatility of capital flows (official, private, remittances) Rapid post-crisis growth in EM, rapid reduction in severe poverty Clone war: age of accountants

9. Observations and Lessons 1 No magic bullet Reform process inter-dependent on different PFM dimensions Ownership is sin qua non Consensus: get basics right: downstream IT systems: take decade or more and require existing capacities and future maintenance

10. Key Lessons 2 Established PFM Roadmaps with significant IFI and EU support. Donor co-ordination fundamental both for above aim and for inputs into aid- effectiveness debate

11. Key Lessons 3 re Democratic Accountability Key Role of PACs Key link between PAC and SAIs