Question

Public Financial Management is critical in achieving aggregate fiscal discipline,strategic allocation of resources and efficient service delivery in any economy. In reference to the Public Expenditure and Financial Accountability (PEFA) framework. Discuss the above statement.

Answer 1

Public Financial Management is highly important for any economy in order to maintain efficiency in management of public funds so that proper fiscal discipline could be established and efficient service could be delivered in the economy and it could be done by proper management of all the collections like taxes which has been paid by the individuals and other taxpayers and distribution of these collections on various purposes of economy in an efficient and effective manner so that there will be equitable distribution and lower a disparity of income between different section of society as it would be helpful in delivering efficient service.

Public expenditure and financial accountability framework is focused upon strengthening the management of the funds by economy through implementation of various procedures like encouraging the country ownership and reducing the transaction costs to other countries and it is also enhancing up on reform which has been made in the economy and maximizing the benefits out of it so this will be a complete structure in order to enhance the management of the public expenditure and ensure your effectiveness in the service delivery so that economy could Prosper.

Countries which are managing their public expenditure in efficient and effective manner are always having advantage over other countries because their exchange rate would be stronger and their Balance of payments and deficits would be lower and they will be able to maintain a lesser disparity of income in overall society so that more people can contribute to the overall growth of the economy and it also reflects the ability of the people in governance in order to control the public expenditure and maintain it appropriately for benefits of the common people.