Support For Public Financial Management

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According to the Development Assistance Committee, there are certain roles that a general budget support should play. They are as explained and described herein as follows:

• The general support for budget should emphasize on partner countries’ rights of ownership. The donors who provide the funds and resources to the needy country should also support its development policies. Therefore, such support should be part of a strong political commitment.

• Budget support should assist in improving the performance and accountability of public financial management (PFM) systems of the partner countries’. The donors providing support to the partner countries’ strengthen their public financial management systems, which include accountability and transparency to their society and government.

• The support for budget should reduce the costs of transaction, especially the supplementary costs such as those incurred through multiple and large-scale PFM evaluations. One way to reduce such costs is to guide the budget support through national procedures.

• The volatile nature of resource allocation should be reduced and the budget support should be provided in a way to improve its predictability. The amount of support requires the timing of its allocation and transparent conditions for its distribution are notable points that should be counted on while planning the budgets. However, past instances show that the real timing and magnitude of budget assurances and disbursements are inconsistent. The donors should try to stay consistent on their part to eradicate the causes of instability.

These were the various roles of the general support for budget leading to utilization of financial support in the right direction of general budget support.

Source by Sarath P Jerome

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