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.

PFM Blog: Digital Public Infrastructure, Platforms and Public Finance

The Co-Develop report by the Rockefeller Foundation, the Digital Public Goods Alliance, and the Norwegian Agency for Development Cooperation underscores the importance of international cooperation and investment in Digital Public Infrastructure (DPI), focusing on identity, payment, and data exchange platforms. While digital identity and payment systems like India’s Aadhaar and UPI are well-integrated into public financial management, data exchange remains challenging due to government silos. The report critiques financial management information systems (IFMIS) for their complexity, lack of open architecture, and limited coverage, suggesting that a platform approach emphasizing interoperability and user needs could better serve lower-income countries. Read full blog on the link.

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