Public Expenditure Management

Public Expenditure Management

Enables governments to manage all spending functions

Public Expenditure Management Solution Overview

(PEM) Public Expenditures Management manages all functions related to government spending and public expenditure control. Due to the unique needs of government – including budget and commitment controls – this exceeds typical accounts payable functionality common in the private sector. Features include:

Expenditures and Purchasing

Expenditures and Purchasing

Supports expenditure controls for standard expenditures including payment management, multiple purchasing vehicles and the purchasing cycle.



Supports fiscal discipline on large-scale government acquisitions including tendering, eProcurement, contract and spend management.

Grant and Social Programs

Grant and Social Programs

Supports government grant, loan, and contribution management.

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(PEM) Public Expenditure Management is one of the six core product pillars within the FreeBalance Accountability Suite™ and is composed of a number of modules that can be implemented as a standalone or part of a unified solution. The PEM pillar reflects all functions related to government spending.

  • (PECM) Contract Management
    Contract management includes payment features to manage all aspects of contract payment accounting.

  • (PECT) Catalogue Management
    Creates workspaces for procurement with an unlimited number of supplier catalogues for goods and/or services.

  • (PEEP) eProcurement Site
    Provides transparency on procurement process, suppliers, pricing and terms – building trust in government.

  • (PEPM) Payment Management
    Initiate payment processes and collection management by expense voucher from any source.

  • (PEGP) Electronic Government Procurement
    Supports discipline in finances on large-scale government acquisitions like tendering, eProcurement, contract and spend management.

  • (PEPR) Purchasing and Expenditure
    Covers the core government purchase and commitment cycle – requisitions, purchase orders, goods receipt, goods returned, expenses and payment vouchers.

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What is Public Expenditure Management?

What is Public Expenditure Management?

Public expenditure management (PEM) is public sector budgeting that is focused on the results and outcomes that a government achieves in line with its national development plan. PEM focuses on outcomes and sees expenditures as a means to produce outputs which are needed to achieve desired outcomes.
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What are the Benefits of Public Expenditure Management?

Some of the features and benefits of a unified Public Expenditure Management solution such as the FreeBalance Accountability Suite™ include:

  • Budget and Commitment Controls
    Ensure that all expenditures are approved and do not exceed budget or allocations established in the system.

  • Purchasing Methods
    Develops a range of purchasing instruments such as local purchase orders, petty cash, open contracts, standing offers and special contracts.

  • Vendor Management
    Manages vendors, including authorizations, certifications and ratings.

  • Social Benefits
    Supports government healthcare programs, pensions, welfare payments and employment insurance.

  • Purchase Cycle
    Manages the entire purchase cycle, including purchase requisitions, purchase orders, goods receipt and goods returned.

  • Procurement
    Manages government procurement including contracts, competitive tenders, tender evaluation and vendor disputes.

  • Grant Management
    Provides support for grants, loans and contributions to individuals, educational institutions, NGOs and businesses.

  • Intergovernmental Transfers
    Manages transfer payments between governments.

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Additional Reading

Public Expenditure Management illustration Managing Public Expenditure Effectively Government entities are constantly looking for ways to save money and improve their processes for managing public expenditure, but it can be difficult to know where to start. Without an effective public expenditure management system in place, governments struggle with waste, inefficiencies, and a lack of transparency. FreeBalance's (PEM) Public Expenditure Management solution is designed to help public sector entities manage their finances more effectively.
Public Expenditure Management The Importance of Public Expenditure Management Public expenditure management (PEM) is the process of managing all functions related to government spending and public expenditure control. Due to the unique needs of government – including budget and commitment controls – this exceeds typical accounts payable functionality common in the private sector which is why ERP systems designed for businesses often fail in government.
Government Spending How Can Governments Improve Public Expenditure? Without a fully integrated Financial Management Information System (FMIS), it's difficult for governments to make sure that they're using taxpayer money in the best way possible. This can lead to wasteful spending, corruption, and a host of other problems.
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