Digital PFM - Digital PFM

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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.

The IMF blog post - The AI Revolution in Tax Administration: Armenia is Leading by Example

The IMF blog post “The AI Revolution in Tax Administration: Armenia is Leading by Example” highlights Armenia’s pioneering use of AI to modernize tax administration. With support from the World Bank, Armenia’s State Revenue Committee launched AI tools to enhance tax compliance, fraud detection, and risk management. Key success factors include strong leadership, partnerships with academia (notably the American University of Armenia), and a focus on practical, high-impact use cases like invoice analysis and fraud ring detection. The initiative also emphasizes responsible AI use, addressing risks like bias and data privacy through transparency, cybersecurity, and stakeholder engagement. Armenia’s approach offers a replicable model for other developing nations.

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