purpose of managing public finances
Ensuring the effective and efficient use of public resources in order to promote fiscal sustainability, economic stability, and equitable development is the main goal of public finance management, or PFM. This entails allocating government funds, budgeting, and strategic planning in a manner consistent with public policy objectives and national priorities. PFM systems seek to reduce deficits, appropriately manage public debt, and promote investor confidence by upholding fiscal discipline.
Improving accountability, transparency, and good governance in the administration of public finances is one of PFM’s main objectives. Governments may guarantee that taxpayer funds are used properly and in the public benefit by implementing strong institutional frameworks, legal requirements, and auditing procedures. This entails transparent reporting, performance evaluation, and the active participation of oversight organizations like auditing firms and parliaments.
Additionally, by making sure that budget implementation is effective and responsive to the requirements of residents, public finance management aims to enhance the caliber and provision of public services. This covers prompt funding distribution, efficient procurement procedures, and platforms for public participation and feedback. In the end, a strong PFM system helps to enhance socioeconomic conditions generally, reduce poverty, and promote inclusive growth.T
Author: Mohamed Yasin
