1. Public Financial Management: Basic Concepts
A process of effectively handling the public purse By
Arjun P. Pokhrel
Joint FCG

2. PFM is all about public money.

3. Presentation Outline PFM concept PFM Cycle Planning aspects of PFM
Budgeting aspects
Audit and scrutiny
Nature of PFM
PFM issues in Nepal
Reform areas

4. PFM Concept
Public financial management is a system , processes and institutions to handling public purse in a prudence manner

5. The PFM Cycle Optimum utilization Planning /Policy Budgeting
Budget implementation.
Accounting, recording and reporting
Scrutiny and Audit

6. Planning Aspects of PFM
Long term plan : guide
Medium Term Plans
Annual plan, policy and programs
Line ministry programs

7. Budgeting Aspects .

8. Budgeting: Converting Programs into monetary term
Budget Formulation:
Deciding Budgetary ceiling
Circulation of ceiling
Preparation of budget by line agencies
Negotiations
Accumulation : expenditures and revenues
Presentation before parliament
Parliamentary Approval

9. Budgeting..................... 2. Budget Execution: authorization
procurement
revenue collection , loans and grants
accounting , recording and and reporting
internal control

10. Audit and Scrutiny
Internal Audit: judging the sufficiency of internal control system and suggesting for ongoing corrections
External Audit: overall financial judgment for future corrections and reforms
Parliamentary Scrutiny: Audit over auditors and corrections over the policies
External scrutiny: correction over the behaviors , for eg. CIAA
Peoples' voice : overall correction

11. Nature of PFM
PFM is a creature of law .Due process is always necessary
Results should be targeted towards the people at large
Public accountability is the heart of PFM
It is the fundamental pillar of governance

12. Issues of PFM in Nepal Planned vs ad hoc Budget: incremental
Due process breached?
Results neglected
Problems in procurement
Weak accounting , recording and reporting
Lack of performance audit
Parliament missing : frequent
Weak governance: utilization of resource
Articulating peoples' voice

13. Reforms Areas MTEF/MTBF Timely budget: budget law?
Treasury management : core TSA
IFMIS
Procurement practices reforms
Accounting Reforms: NPSAS ,commitment acc.
Internal Audit Reforms and focus on performance audit
Parliament and people voice
Greater Transparency

14. Discussion Session
YOUR QUESTIONS?

15. .
Thank You