Publication:
Study of Recent Literature on Public Financial Management and Accountability (PFMA) System of the Government of India

Loading...
Thumbnail Image
Files in English
English PDF (1.74 MB)
1,299 downloads
English Text (972.55 KB)
422 downloads
Date
2005-11
ISSN
Published
2005-11
Author(s)
Editor(s)
Abstract
This report conducts a survey of the more recent literature on the public financial management and accountability system of the Government of India and analyzes its contents. The overall objective is to provide the basis for enhanced knowledge and understanding of the public financial management and accountability system including its strengths and weaknesses as perceived by the authors of the publications. The study prepares an annotated bibliography of select contemporary material on the public financial management and accountability system and presents an analytical survey relating to its various components. The study concludes that the legal systems are in place in all areas, as well as the attendant procedures, rules and regulations. Trained manpower is available. Oversight systems are vibrant through well established independent external audit and legislative committees. There is increasingly more transparency in the budgetary disclosures. Steps have been taken to review the existing accounting systems. One area of concern is the compliance gap. There is found to be slackness in observing and enforcing the rules and regulations.
Link to Data Set
Citation
World Bank. 2005. Study of Recent Literature on Public Financial Management and Accountability (PFMA) System of the Government of India. © World Bank. http://hdl.handle.net/10986/12522 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections

Related items

Showing items related by metadata.

  • Publication
    India - Jharkhand : Public Financial Management and Accountability Study
    (Washington, DC, 2007-09) World Bank
    Jharkhand, India's youngest and 28th state came into existence in November 2000 pursuant to the reorganization of the erstwhile State of Bihar by the Bihar State Reorganization Act, 2000. More than 77 percent of the population of the state resides in rural areas and depends on agriculture for sustenance. Jharkhand is one of the richest states in the country in terms of mineral resources. Close to half of the gross domestic product (GSDP) of the state emanates from industry which includes mining, quarrying and registered manufacturing. But the high degree of industrialization has not resulted in a high level of income for the state. While the structure of the output indicates a high level of industrialization, the structure of employment reveals the predominance of agriculture. The purpose of this study is to make an objective assessment of the Public Financial Management and Accountability (PFMA) system of the state, identify its strengths and weaknesses and areas that may be in need of reforms and related capacity building. This study is a prerequisite to determining the precise nature and extent of any capacity building initiatives in Jharkhand. The study provides the Government a diagnostic tool for establishing priorities and to develop a baseline for monitoring future PFM performance of the state.
  • Publication
    India : Karnataka State Public Financial Management and Accountability Study
    (Washington, DC, 2004-04-23) World Bank
    Karnataka as embarked on a major fiscal and governance reform program that aims at restoring the state's financial health and improving the performance of the state's public sector. This study examines Karnataka's public financial management and accountability system (PFMA) light of this reform program. The study covers the following: budget development, execution and monitoring; fiscal transparency; accounting and financial reporting; and internal and external controls, including auditing and legislative oversight. The study does not focus on Karnataka's fiscal position or performance; it also does not cover issues relating to the quality of expenditure allocations; or the effectiveness, efficiency, and poverty focus of public spending per se. However the study does try to take into account the links between these issues and the PFMA system.
  • Publication
    India : Synthesis Study of Public Financial Management and Accountability in Urban Local Bodies
    (Washington, DC, 2007) World Bank
    This study assesses the current state of Public Financial Management and Accountability (PFMA) systems in Indian urban local bodies. It identifies, analyzes, and documents good practices, focusing on their existing context, success factors, and replicability. It is important to mention that urban governance in India is a state subject and there are vast differences in the levels of reform that have achieved in different states. For the purpose of comparison, this study has developed good practice benchmarks in each PFMA area and used those to compare practices across Urban Local body (ULB)s. The study analyzes linkages between the legislative, budgeting, implementation, reporting, and oversight process in urban local bodies. Benchmarks and indicators have been developed for each strategic area. Analysis of policy, practice, and progress in each strategic area has also been conducted. This study synthesizes existing literature on PFMA in urban local bodies, identifies key PFMA areas where focused attention was required, and suggests ways forward. The main objectives are: 1) To describe the current PFMA environment in urban local bodies in India and identify replicable good practices; 2) To use the Public Expenditure and Financial Accountability (PEFA) benchmarks in developing good practice in each PFMA activity and to develop indicators for assessing PFMA in Indian urban local bodies; 3) To identify challenges and suggest priorities for improving the PFMA environment in Indian urban local bodies so as to feed into Jawaharlal Nehru National Urban Renewal Mission (JNNURM). This study does not focus on the financial performance or on quality of expenditure in terms of specific aspects of efficiency or effectiveness of spending by urban local bodies. It does not cover intergovernmental relations either in any level of detail except to the extent that such relations impact PFMA performance. It is important to mention that this study does not attempt to develop a scoring system for indicators and therefore does not rate relative performance among urban local bodies. It does however suggest as a key recommendation that states could adopt a scoring system or a "PFMA Report Card" for the urban local bodies as a means of comparison of PFMA performance to build a demand for better governed ULBs.
  • Publication
    India - Public Financial Management and Accountability in Panchayati Raj Institutions (Rural Local Governments) : Synthesis Study
    (Washington, DC, 2006-12-21) World Bank
    This Study has been designed to serve as a reference point for (i) mapping the Public Financial Management and Accountability (PFMA) arrangements currently in place; (ii) highlighting good practices that have emerged across States relative to PFMA; and (iii) summarizing issues that are most relevant to the Government of India, State Governments and the Bank when it comes to financing future projects through Panchayati Raj Institution (PRIs). This Synthesis also captures the recommendations of the Eleventh and Twelfth Finance Commissions, as well as the initiatives of the recently constituted Ministry of Panchayati Raj (MoPR). Inter alia, the MoPR has laid out a road map for enhancing the accountability of PRIs to their constituents. Because devolution of powers has resulted in different models in the various states, this study has not attempted prescriptive solutions or standard models for implementation. Rather, this study offers input to the design of Bank interventions and activities relating to Decentralization; it is not in itself a Decentralization study. This Study covers PRIs in six Indian states, including (i) Karnataka, Orissa and Uttar Pradesh where the Bank has carried out State Financial Accountability Assessments (SFAA); (ii) Rajasthan and West Bengal where several good practices have emerged at the urging of the state government and/ or the public at large; and (iii) Uttaranchal where the Bank has changed the design of existing projects, such as the Watershed Project to route funds through the PRIs as much as possible.
  • Publication
    India : Note on Public Financial Management and Accountability in Centrally Sponsored Schemes
    (Washington, DC, 2006-05-16) World Bank
    The budget outlay for Centrally Sponsored Schemes (CSS) for India in 2005-06 is significantly higher as compared to the previous year's level of Rs.395,000 million. This includes increased allocations for rural roads, rural employment, and education and nutritional support for pre-school children. At present there are over 200 such schemes in operation, of which a dozen accounts for more than two-thirds of the outlay. Given the states limited scope to significantly raise internal resources within the existing fiscal framework, coupled with a high wage bill that crowds out development expenditure, the CSS are likely to remain an important source for development funds for the states. The objective of CSS is to address issues of national priority with focus on human development, poverty alleviation and rural backwardness. The findings and the suggestions to improve financial accountability systems in CSS needs to be viewed in the light of varying quality of governance across the states and the fiscal stress faced by certain states.

Users also downloaded

Showing related downloaded files

  • Publication
    Argentina Country Climate and Development Report
    (World Bank, Washington, DC, 2022-11) World Bank Group
    The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.
  • Publication
    Global Economic Prospects, June 2024
    (Washington, DC: World Bank, 2024-06-11) World Bank
    After several years of negative shocks, global growth is expected to hold steady in 2024 and then edge up in the next couple of years, in part aided by cautious monetary policy easing as inflation gradually declines. However, economic prospects are envisaged to remain tepid, especially in the most vulnerable countries. Risks to the outlook, while more balanced, are still tilted to the downside, including the possibility of escalating geopolitical tensions, further trade fragmentation, and higher-for-longer interest rates. Natural disasters related to climate change could also hinder activity. Subdued growth prospects across many emerging market and developing economies and continued risks underscore the need for decisive policy action at the global and national levels. Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing economies, on a semiannual basis (in January and June). Each edition includes analytical pieces on topical policy challenges faced by these economies.
  • Publication
    Lebanon Economic Monitor, Fall 2022
    (Washington, DC, 2022-11) World Bank
    The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.
  • Publication
    World Development Report 2006
    (Washington, DC, 2005) World Bank
    This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.
  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.