PURPOSE OF PUBLIC FINANCIAL MANAGEMENT GOAL
The vital function of public financial management (PFM) is to guarantee that public resources are organized, distributed, and utilized effectively and openly in order to accomplish national development objectives. It includes systems for accounting, auditing, tax collection, spending management, and budgeting that facilitate the efficient provision of public services. PFM assists governments in meeting the demands of their constituents and advancing economic stability by coordinating financial resources with policy priorities.
Ensuring accountability and transparency in the use of public funds is one of PFM’s other main goals. Governments may explain how taxpayer dollars are being spent through appropriate financial reporting and supervision procedures, which helps to foster public trust and lessen the likelihood of corruption or financial mismanagement. This promotes democratic governance and cultivates a culture of accountability and integrity in public institutions.
PFM is also essential for preserving long-term financial sustainability and fiscal restraint. Governments may prevent large deficits and make sure that today’s financial actions do not burden future generations by monitoring fiscal risks, managing public debt, and creating realistic budgets. All things considered, inclusive growth, poverty alleviation, and enhanced public sector performance are all facilitated by effective public finance management.
Author: Mohamed Yasin
