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Public Financial Accountability at the Local Level : The role of PFM in Service Delivery and Accountability. Rama Krishnan, Senior Financial Management Specialist, The World Bank, Washington DC. Service Delivery and Accountability.
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Public Financial Accountability at the Local Level: The role of PFM in Service Delivery and Accountability Rama Krishnan, Senior Financial Management Specialist, The World Bank, Washington DC
Service Delivery and Accountability Service Delivery is a key priority for all Governments – public goods, market failures Increased public spending does not result in service improvements Accountability in Public spending is necessary to achieve service delivery outcomes Conceptualizing the service delivery and accountability relationship – WDR 2004 – long and short routes to accountability
Accountability in Service Delivery: the WDR 2004 Model Long and Short Routes to Accountability
Accountability and Service Delivery: the institutional dimension • Strengthening institutional relationships among key actors is key to enhancing accountability • Decentralization and local governance is a critical reform that reinforces accountability relationships in service delivery • Local Governments are best suited to fulfill the accountability relationships in service delivery – Voice, Subsidiarity Principle • PFM underpinnings of Decentralization • Caveat: Decentralization is multi-dimensional !
PFM Aspects of Service Delivery : Financing Local Service Delivery
PFM aspects of local service delivery: efficiency in delivering services Participative Planning and Budgeting – the Peoples Planning Model in Kerala, India and the Participative Budgeting in Porto Allegre, Brazil Realistic Costing of services (ABC analysis, Cost Controls) Procurement and Budget Execution Internal Controls Strengthening MIS for financial and operational monitoring
PFM Aspects of Service Delivery: Strengthening Financial Accountability
The Enabling Environment for PFM in local service delivery The Legal and Procedural Framework to support PFM – the de jure and de facto aspects (Cote d’Ivoire) The question of Capacity Building: how to do it? (Learning by Doing, Mobile Teams, Demand driven training) The Role of the Central and Provincial Governments The Political Economy of PFM Reforms (Sri Lanka)
Concluding Thoughts PFM interventions need to be Results Focused Sequencing of reforms is important Integrated approach to PFM is essential : (bringing together the demand and supply sides, linking the revenue with the expenditure aspects) Be ready for the long haul: the long term nature of PFM reforms
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