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Public financial management

Good public financial management systems are important for poverty reduction. Photo: Per Kristian Lunden

In line with the Paris declaration on aid effectiveness, donor countries have committed themselves to increasingly rely on partner countries' public financial management (PFM) systems instead of setting up parallel systems for managing program funds. As a result, donors have become increasingly concerned with the quality of PFM systems in the receiving country and are now providing support to strengthen the PFM systems.

More on public financial management

Support to Public Financial Management reforms in MozambiqueNorway has provided support to the public financial management reform since the beginning of the reform in 2002. The current bilateral agreement is the third agreement amounts to 40 million NOK over four years (2006-2009). The results after the first fase show improvement in management, and therefore limits the scope for mismanagement of funds and corruption.

Support to Public Financial Management reforms in TanzaniaThe Public Financial Management Reform Program (PFMRP) is Tanzania's main program for improving public financial management (PFM). The Program has been in place since 1998 and a phase III of the program was launched November 2008. The funding for the program during 2008/09 is around USD 30 Million.

Publuic Financial Management Reforms in UgandaThe Government of Uganda has prepared a comprehensive program of PFM reforms, the Financial Management and Accountability programme (FINMAP). Norway has committed up to NOK 25 million to FINMAP from 2006/07 - 2010/11. In recent years Uganda's PFM system has been rated above average. Still, significant challanges remain.