Public financial management

The need for trust in CEE

At PwC, our purpose is to build trust in society and solve important problems. And trust in public financial management is key for trust in society. 

What do we mean when we speak about public financial management? 

In simple terms, it’s how governments manage public resources. This includes all phases of budgeting, processes and procedures related to expenditure management, resource mobilization, and debt management. It is the framework for governments to consider the medium- to long-term implications of today’s policy decisions and assess potential risks. 

Citizens are demanding more from governments, and public financial management systems should reflect their needs. As we emerge from the pandemic, government policies and reforms need to ensure transparent and efficient use of public budgets that are adjusted to the current climate and focused on achieving their development objectives.

Enhanced internal and external audits, the refinement of accounting practices, and the quality, transparency and timeliness of financial reporting are more important than ever. Innovative solutions and digital tools will play an important role in ensuring these processes are transparent and efficient.

 

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Public financial management in CEE

In these challenging times, improving public finance isn’t at the top of many governments’ agendas. But it should be. Transparent financial management and reporting creates credibility and increases citizen trust. Governments that are open about their financial and resource situation will be better equipped to respond to requests for financial assistance.

Biljana Bogovac, Partner, PwC Serbia

The elements of public financial management

Financial management

How governments manage finances has large implications for the future of their country. Robust fiscal policies and administration, as well as an outcome-based budgeting framework, are crucial to ensure efficient and sustainable mobilization and allocation of resources. 

Governance framework and risk management

Clear rules and regulations are needed for public finances to be transparently managed. This framework should ensure the public financial management system has the required resources and is operating in a timely, inclusive, open and accountable manner, in order to mitigate and minimise the impact of potential risk

Reporting

Continuous reporting and scrutiny of public budgets creates transparency for both citizens and governments. This is a key way that governments can gain peoples’ trust, ensuring that funds are spent as allocated and presented to the public.

Performance management

Robust performance management can be a game-changer for public financial management systems struggling to attract and retain talent. When governments improve the efficiency and effectiveness of the institutions’ key operations, they will see increased performance.

Contact us:

Biljana Bogovac

Partner, Assurance Services, Belgrade, PwC Serbia

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Marijana Trifunovic-Stefanovic

Director, Public Sector, Belgrade, PwC Serbia

+381 11 3302272

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