Elements of Public Finance Management: A Developing Country Perspective

Course evaluation        

Description

Elements of Public Finance Management: A Developing Country Context 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 as an instrument of policy implementation.  It examines the identifying features of the developing country context, and typical political economy dynamics that occur.  It specifically covers macro-economic forecasting and tax policy rudiments, the macro-fiscal framework as an instrument of top-down discipline, strategic planning, budget formulation – introducing Medium Term Expenditure Frameworks (MTEF), budget classification, the budget process, revenue management, budget releases and cash management, predictability and control in budget execution, budget and expenditure control, debt management, payroll management, procurement, and internal audit.   It also touches upon revenue management, debt management, simple accounting and financial reporting, parliamentary oversight and audit.  Finally it address donor aid, aid modalities and the integration of donor aid into the budget (ex-ante and ex-post) 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 topical areas.

Objective

The principal professional workshop objective is to provide participants with the introductory tools to effectively understand and discuss Public Finance Management; and to be able to appreciate the linkages between different PFM function and to understand the and identify particular challenges that arise out of carrying out PFM in a developing country context.   The course allows participants to assess the impact of PFM performance on their own PFM areas, their sectors and programmes of interest.  Further it is to allow discussion and interaction with other participants who may share common challenges.

Audience

The target audience is for PFM managers and people new to areas of PFM responsibility that would benefit from a comprehensive, integrated view of Public Finance Management.  Government officials Development advisors whose work is impacted by public finance management but with little or no experience of public financial management.

Pre-requisites

This course is designed for people with a narrow experience with specific areas of public finance management that wish to broaden their perspective on PFM carried out in the developing country context.  Consequently no specific pre-requisites are necessary; however given its intensive and comprehensive approach, it will be useful for participants to familiarize themselves with basic economic and accounting concepts and terminology prior to attending the course.

Learning outcomes

By the end of the course participants should:

• Understand the full scope of public finance management; the political and macroeconomic framework in which it operates, its institutions and the structure of its legal and regulatory framework.
• Understand a useful analytical framework for PFM that integrates the – 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
• Appreciate the defining characteristics of the developing country context and its impact upon PFM performance and understand how the political economy colours PFM practice.

• 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, tax management, 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;
• Understand the approaches and tools of External Audit and the role of Parliament in PFM context as well as understand its oversight function of the budget both ex-ante as well as ex-post.
• 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 and the challenges of integrating aid flows into the budget and properly reporting on the aid expenditure
• 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 raised
• The use of major case studies –to illustrate in more detail some of the key points of the course.