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.
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.
