Digital PFM - Digital PFM

Today:

Website is dedicated to empowering PFM professionals with the necessary resources needed for effective Digital PFM. Website lists resources, technical notes, best practices, blogs, and news to enhance transparency, efficiency, and accountability in public finance using digital technologies. Whether you're a policymaker, practitioner, or researcher, website supports your journey toward smarter PFM.

About Digital PFM

PFM is being transformed by digital technologies, including AI, Machine Learning, and blockchain. AI, particularly in cognitive automation, plays a vital role in automating complex PFM tasks that require human-like decision-making, such as budget forecasting, anomaly detection, and compliance checks. AI/ML enhances decision-making and predictive analytics, while blockchain ensures transparency and security in transactions. Data analytics provides real-time insights, optimizing resource allocation.

Data governance remains crucial for AI, ensuring accuracy, consistency, and security across systems, which builds trust and compliance. Key components of digital PFM include digital budgeting, e-procurement, automated financial reporting, and Integrated Financial Management Information Systems (IFMIS). Additionally, Public Investment Management Information Systems (PIMIS), payroll, and other PFM IT systems enhance efficiency and accountability, creating a transparent and effective PFM ecosystem for governments.

Lessons from Reforming Financial Management Information Systems

Financial Management Information Systems (FMIS) are crucial for public financial management, significantly aiding in budget execution, fiscal discipline, resource allocation, and operational efficiency. The World Bank and other institutions have heavily invested in FMIS globally. Despite their potential, FMIS reforms are complex, with limited evidence on their causal effects. This study introduces a framework for FMIS reform, focusing on three dimensions: the diagnostic phase, the systems development lifecycle, and coverage and utilization. Achieving optimal FMIS performance and budget management improvements requires a coherent approach across these dimensions. The study also offers lessons from a systematic review of FMIS literature, project evaluations, case studies, and World Bank documentation.

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