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PSAF – April 2022 – L2 – Q3a – The context of public financial management

Discuss challenges of PFM systems, expected outcomes, and the PEFA framework’s role in building an orderly PFM system.

The goal of the Minister for Finance is to build a robust, resilient, open, and orderly Public Financial Management (PFM) system for the country by the end of 2022. This ambitious target has huge budgetary implications for the government due to the difficult fiscal position imposed by the COVID-19 pandemic. The Minister is optimistic that investing more in PFM systems today will produce the expected outcome in the immediate future.

Required:
i) Discuss THREE (3) challenges of the current Public Financial Management systems of the country. (3 marks)

ii) Explain THREE (3) expected outcomes of an open and orderly Public Financial Management system of the country. (3 marks)

iii) Explain FOUR (4) ways by which the Public Expenditure and Financial Accountability (PEFA) framework can help the Minister build an orderly and open Public Financial Management system for the country. (4 marks)

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PSAF – April 2022 – L2 – Q3a – The context of public financial management

Discuss challenges of PFM systems, expected outcomes, and the PEFA framework’s role in building an orderly PFM system.

The goal of the Minister for Finance is to build a robust, resilient, open, and orderly Public Financial Management (PFM) system for the country by the end of 2022. This ambitious target has huge budgetary implications for the government due to the difficult fiscal position imposed by the COVID-19 pandemic. The Minister is optimistic that investing more in PFM systems today will produce the expected outcome in the immediate future.

Required:
i) Discuss THREE (3) challenges of the current Public Financial Management systems of the country. (3 marks)

ii) Explain THREE (3) expected outcomes of an open and orderly Public Financial Management system of the country. (3 marks)

iii) Explain FOUR (4) ways by which the Public Expenditure and Financial Accountability (PEFA) framework can help the Minister build an orderly and open Public Financial Management system for the country. (4 marks)

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