Govt goes for financial management overhaul

The government is set to start a comprehensive reform of public financial management under a five-year strategy to ensure proper use of national resources and better execution of national budget, officials said.
On August 22, the finance minister endorsed a draft Public Financial Management (PFM) reform strategy for the period 2016-21.
Now an action plan will be prepared "shortly" for execution of the strategy, they added.
Five goals have been fixed under the five-year reform recipe for the vital field of public finance. The goals are (1) to maintain aggregate fiscal discipline compatible with macroeconomic stability and pro-poor growth (2) allocate resources consistent with government priorities as reflected in national plan (3) promote the efficient use of public resources and delivery of services through better budget execution (4) promote accountability through external scrutiny and transparency of budget (5) and enhance the enabling environment for improved PFM outcomes.
Under these five broad heads of the strategy, 127 activities have been chalked out for implementation gradually for a much-needed overhaul of the public financial management.   
"We will take a complete action plan under the draft strategy. Different activities for reformation on government financial management sectors will be taken up for implementation," Muslim Chowdhury, Additional Secretary at Finance Division, told the FE on Friday.
The objective of the strategy is to achieve a balanced and sustainable budget with a reduced debt ratio through stronger financial management.
Besides, budget execution will be connected correctly in accordance with government-related policies, a senior official at the finance division told the FE Wednesday.
It is an urgent need to implement the next levels after necessary reform of government financial management to achieve the objectives of the 7th Five Year Plan, vision 2021 and Sustainable Development Goals (SDGs), he also said.
"Besides, it will bring further efficiency and ensure fiscal transparency within government's different levels," he also said.
The draft strategy has been prepared by the finance ministry with technical assistance from a number of donors, according to an official conversant with the entire plan.
Detailed discussions have been held and opinions received from the stakeholders concerned in different levels during preparation of the strategy. A two-day workshop was held in Habiganj last February in this regard, the official noted.
The government had earlier prepared PFM reform strategy 2007-12 with a view to reforming its financial management. The new 2016-21 strategy is to build on the outcome of its forerunner (2007-12 strategy).   
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