FINANCIAL

PUBLIC
MANAGEMENT

LENYROSE B.
ASEGURADO
MAED-AS STUDENT
WHAT IS
FINANCIAL Financial public management (FPM)

PUBLIC is the process by which

MANAGEMENT? governments collect, allocate, and

manage public resources. It
encompasses all aspects of public
finance, from budgeting and
accounting to procurement and debt
management.

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 WHY IS FPM
IMPORTANT?

FPM is important because it ensures that public

resources are used efficiently and effectively to
achieve government objectives. It also helps to
promote transparency and accountability, and to
build trust between governments and citizens.

FISCAL ADMINITRATION 3
 Key principles
of FPM

1. Transparency: Public Financial information should be accessible

and understandable to all stakeholders.

2. Accountability: Public officials should be accountable for the use

of public resources.

3. Efficiency: Public resources should be used in the most cost-

effective manner possible.

4. Effectiveness: Public programs and services should achieve their

intended objectives.
 THE BUDGET CYCLE

The budget cycle is the process by which governments develop, approve, and implement their budgets.

1. Preparation: The
government
develops a
proposal for the
upcoming budget.

BUDG
4. Accountability:
The government
reports back to the
public on how the
ET 2. Enactment: The
legislative body
approves the

CYCL
budget.
budget was
implemented.

E 3. Execution: The
government
implements the
budget.

FISCAL ADMINISRATATION 5
Public Accounting

Public accounting is the process by which

governments record and report their financial
transactions. It is important to ensure that public
financial statements are accurate and reliable.

Public debt management

Public debt management is the process by which

governments manage their debt. This includes
borrowing money, repaying debt, and managing the
risks associated with debt.

FISCAL ADMINISTRATION
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 Governments face a number of challenges in managing public finances. These
challenges include:

Limited Resources Complex Needs Public Expectations Corruption

Governments often Governments must Citizens have high Corruption can

have to make provide a wide expectations for undermine
difficult decisions range of services the services that FPM and lead
about how to to their citizens, governments to the misuse of
allocate scarce which can be provide. public
resources. complex and resources.
costly.
FISCAL ADMINISTRATION 7
 FPM REFORMS
Decentralization: Governments are devolving more
fiscal responsibility to local governments.

Performance-based budgeting: Governments are

linking budgets to performance outcomes.

E-government: Governments are using technology to

improve the efficiency and transparency of their FPM
systems.
FISCAL ADMINISTRATION 8
 THE ROLE OF INTERNATIONAL
ORGANIZATIONS
• International organizations, such as
the World Bank and the International
Monetary Fund, play an important
role in supporting FPM reforms in
developing countries. They provide
technical assistance, training, and
financial support.
FISCAL ADMINISTRATION
THE ROLE OF CIVIL SOCIETY
• Civil society organizations can also
play an important role in promoting
FPM reforms. They can help to raise
awareness of FPM issues, advocate
for reform, and monitor the
implementation of reforms.
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 SUMMARY
FPM is essential for ensuring that public
resources are used efficiently and effectively
to achieve government objectives.
Governments are facing a number of
challenges in managing public finances, but
they are also implementing reforms to
improve their FPM systems. International
organizations and civil society organizations
can also play an important role in supporting
FPM reforms.

FISCAL MANAGEMENT 10
 THANK YOU!

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FISCAL MANAGEMENT