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Five years after the global financial crisis struck, residual effects continue to impact public financial management (PFM) in countries throughout the world.
While there were many negative impacts, such as increased deficits and reduced access to resources, PFM practitioners have also found positive impacts, such as reformed procurement processes and enhanced financial transparency.
The crisis provided the impetus to improve PFM practices. A greater emphasis on managing risk and more focus than ever on efficient and effective use of resources that better meet the needs of citizens has emerged.
The survey which was conducted by the International Consortium on Governmental Financial Management (ICGFM) and Grant Thornton member firms looks at the impact of the financial crisis on the PFM reform agendas in 51 countries.
Key findings
- Risk management: while the debate about which specific risk management techniques are best suited to the public sector continues, the survey reveals a general agreement that governments need to better understand the financial impacts of current policies and future unexpected events.
- Efficient and effective service delivery: over one-half of respondents indicated they have incorporated better methods to measure the effectiveness and efficiency of service delivery in PFM practices.
- Procurement: over 65% of respondents indicated they have incorporated better methods to measure the effectiveness and efficiency of service delivery in PFM practices.