Publication: India : Karnataka State Public Financial Management and Accountability Study
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2004-04-23
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2004-04-23
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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.
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“World Bank. 2004. India : Karnataka State Public Financial Management and Accountability Study. © World Bank. http://hdl.handle.net/10986/14588 License: CC BY 3.0 IGO.”
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Publication India : Orissa State Financial Accountability Assessment(Washington, DC, 2004-05-30)The Country Assistance Strategy for India places emphasis on the need for modernizing public financial management, and accountability systems, and, undertaking such diagnostic work as necessary to help build Government's capacity for better public sector management, and external scrutiny. It calls for financial accountability assessments to be carried out in all States where programmatic adjustment loans are being prepared, supporting reforms associated with fiscal, and fiduciary risks management. Of India's 14 major States, Orissa has the second lowest, per capita income, and a growth rate of 3 percent against the national average of 5-6 percent per annum, while statistics also show its revenue, and fiscal deficits increased significantly over the years. 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Serious fiscal problems have emerged since the 1990s: the revenue deficit has increased significantly over the years, as well as the fiscal deficit, and, arrangements for accountability in the public sector have been undermined. Procedures exist for budgeting and monitoring the use of public resources, but there is little incentive to follow them. The Comptroller and Auditor General of India questions numerous departmental actions each year, but there is no compulsion on the executive branch to provide prompt answers, and to make necessary changes. Some useful progress has been made in implementing the financial management reform program over the last three years, as follows: 1) Computerization of the Treasuries in a network system has been completed at state government level, enabling the Government to monitor cash flows and prevent excess expenditures; 2) a Directorate of Internal Audit has been established in the Department of Finance to provide central leadership, and guidance in the development of departmental audit; and, 3) measures are being taken to establish better control over payrolls. The report reviews the strengths and weaknesses in financial management and accountability, to present a risk analysis that highlights widespread irregularities, and lack of prompt and predictable corrective action, meaning that the overall level of fiduciary risk remains high. It suggests there is significant scope for the Government of UP to improve the efficiency, and effectiveness of public spending through further consolidation of the budget, better matching of accountability with responsibility, routine enforcement of accountability, and greater transparency. This would be fully consistent with the fiscal reform program, and would have a direct impact on the GoUP's ability to provide more, and better quality public services to the poor. 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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. 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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 FYR Macedonia : Country Financial Accountability Assessment(Washington, DC, 2004-03-11)This Country Financial Accountability Assessment (CFAA) reviewed the Government of Macedonia's public expenditure management system, to identify major fiduciary risks of financial management and control. The report builds upon previous in-depth work, conducted by the Bank, and focuses on identifying areas of control risk, and making specific short- and medium-term recommendations to mitigate them. 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The State Audit Office's role, resources, and technical capacities must be strengthened, for as an external audit, it is another critical component in the internal control of government revenues and expenditures. The MOF should prepare a strategic plan to enable the management of significant changes that it faces over the next five years, and to set priorities for the various strategies that it must implement. The global fiduciary risk assessment presented, given the current state of public financial management in Macedonia, is assessed as moderate.Publication Government of Karnataka Public Financial Management Reform Action Plan, 2014, Volume 1. Main Report(Washington, DC, 2014-05-01)The main report comprises the following chapters: executive summary provides the overall view of the reform action plan. Chapter one outlines the background, scope and methodology for the study; chapter two outlines the overview of the state finances; chapter three describe the accomplishments made against the 2004 agreed PFMA action plan; chapter four provides an overview of the analysis, gaps and recommendations made in the study; chapter five describes the way forward for implementation of the action plan; annex one: PFM reform action plan - 2014 contains a thematic-wise plan outlining the actions to be taken, the responsible department for the actions, and the expected timeframe for completing the actions. The detailed analysis of the issues and the logic for the action plan are provided in the respective sections of the appendix; annex two: 2004 PFMA action plan, outlines the current status of action taken on 2004 PFMA action plan: this contains the action plan as proposed in the 2004 report, updated with the current status of actions in the identified areas. In case where the actions have been taken and completed by the Government of Karnataka, the impact has been documented. The appendix comprises the following sections: section one: theme one: strengthening PFM legal and institutional framework; section two: theme two: enhancing comprehensiveness and credibility of the budget; section three: theme three: strengthening accounting, reporting, controls, and transparency; section four: theme four: improving fiscal assets and liability management system; section five: theme five: strengthening audit and legislative oversight; section six: theme six: improving PFM in local self-governments; section seven: theme six: improving PFM in public sector undertakings (state owned); each section describes the various areas of public financial management in the Government of Karnataka grouped into thematic reform areas. Each reform area has a discussion of the background, the reform actions proposed in the 2004 PFMA action plan, the progress of reforms over the last decade, the issues presently identified, and the rationale for the reform actions proposed; and section eight: 2014 action plan: this section describes the action plan with next steps to be followed under each activity of the action plan.
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