TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Weste...
Public Financial Management Reform Trends and Lessons
1. Public Financial Management Reform: Trends and Lessons Bill Dorotinsky World Bank ICGFM December 2008 Washington, D.C.
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3. Popular Reforms Recommended reforms generally try to change incentives by changing rules, roles and information External audit ? ? ? Accrual Accounting Internal control/audit Procurement Reporting/ Transparency Budget classification, chart of account Treasury Single Account Fiscal Responsibility Laws IFMIS, automation Performance, Program budgeting Medium-Term Expenditure Frameworks Operational Efficiency Strategic Allocation Macrofiscal Discipline
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7. Budget Formulation Recent Reform Emphasis Different drivers of reforms confuse the picture. Which are donor-driven? Which country driven? Which address real need? Which are simply fashionable? If higher income enables more self-direction, interesting that performance budgeting of greater interest in upper-middle income countries. * 2006 gross national income (GNI) per capita. The groups are: low income (LIC) US$905 or less; lower middle income (LMIC) US$906–3,595; upper middle income (UMIC) US$3,596–11,115. 23% 21% 9% Capital-Investment Bdgts 38% 15% 23% Performance/Program Budgeting 46% 39% 37% MT Expenditure Framework 31% 45% 29% MT Fiscal Framework UMIC* (13) LMIC* (33) LIC* (35)