Governments adopt performance-based budgeting to improve spending prioritization and to increase the efficiency and effectiveness of public expenditure. Performance budgeting is considered a reform that improves upon traditional budgeting.
It is unlikely that 2022 will be remembered fondly by governments around the world. In fact, things are so bad that the word ‘permacrisis’ is the Collins Dictionary word of the year. With governments having to deal with unsustainable levels of public debt and seemingly unrelenting waves of crises, all eyes are once again on Public Financial Management (PFM).
The balanced scorecard enables tying long-term government goals to annual and medium-term budget proposals which improves program evaluation. The balanced scorecard is also an effective transparency mechanism as it provides evidence of progress towards goals and validates policy.
The reality is that the public sector is ill-prepared to deal with the opportunities and challenges of government digital transformation. This governance gap is a trillion-dollar annual problem. Poor governance and weak institutions are recognized as the #1 perceived impediment to prosperity and citizen wellbeing.
With more than 50 different modules providing end-to-end public financial management functionality, the FreeBalance Accountability Suite™ can be progressively activated to meet the evolving requirements of your PFM reform program.
Government digital transformation overlaps with overall country digital transformation. It is therefore important for governments to use program or performance budgeting to make sure that expenditure on digital transformation initiatives actually deliver against the national development strategy.
The latest PEFA Assessment from the Public Expenditure and Financial Accountability Secretariat shows that the Government of Sierra Leone has made good progress in many aspects of Public Financial Management (PFM) reform. While there is still work to be done, the government can be commended for its achievements despite the difficulties associated with the pandemic. Find out more.
The Chart of Accounts (COA) or “budget classification” is arguably the most critical part of effective Public Financial Management (PFM) reform and Integrated Financial Management Information Systems (IFMIS) design. The COA for government is more complicated than in the private sector and the COA often changes to reflect legal and financial management reform.
PFM is about following the budget cycle from planning through to outcomes by building resilience in Public Investment Management and achieving sufficient fiscal space to react to crises. And, the use of an effective Government Resource Planning (GRP) system like the FreeBalance Accountability Suite™ to support the entire budget cycle.
FreeBalance’s new Commercial-off-the-Shelf software solution to manage social services such as pension funds, welfare programs or universal credit. Based on the core functionality of the FreeBalance Accountability Suite™ the package of modules offers an end-to-end solution for any government ministry, department or agency involved in social security.