World BankInternational Monetary Fund2013-11-142013-11-142013-07https://hdl.handle.net/10986/16260This note is intended to inform Public Financial Management (PFM) reform in small Pacific Island Countries (PICs). PFM systems in PIC contexts are often very different from the sophisticated and comprehensive systems operating in larger, wealthier countries. The authors give two key messages. Firstly, PFM capacity should be prioritized to areas that matter most in achieving development outcomes, and reforms should be intended to address specific, identified, problems, rather than to achieve blueprint good practice standards. Secondly, with small numbers of staff and high staff turnover limiting potential for sustainable gains from standard capacity building solutions (such as training programs and workshops), broader options for meeting capacity gaps should be considered, including accessing ongoing support for specialized tasks or even the wholesale outsourcing of certain functions. The three main sections of this note are as follows: (i) how to plan PFM reforms, including through the development of PFM roadmaps; (ii) how to prioritize limited PFM reform capacity to address the most pressing constraints to development; and (iii) how to access additional capacity to implement and sustain required PFM reforms.en-USCC BY 3.0 IGOACCESS TO INFORMATIONACCOUNTABILITY ARRANGEMENTSACCOUNTABILITY FOR RESULTSACCOUNTABILITY SYSTEMSACCOUNTINGACCOUNTING SYSTEMSACCUMULATION OF DEBTAGGREGATE EXPENDITUREAGGREGATE FISCALALLOCATIONALLOCATION OF RESOURCESANNUAL BUDGETANNUAL FINANCIAL STATEMENTSAPPROPRIATIONSARREARSBANK POLICYBUDGET ALLOCATIONSBUDGET DEVELOPMENTBUDGET DOCUMENTATIONBUDGET EXECUTIONBUDGET EXPENDITUREBUDGET INFORMATIONBUDGET LAWBUDGET POLICYBUDGET PREPARATIONBUDGET PROCESSBUDGET SUPPORTBUDGET SYSTEMSBUDGETARY ALLOCATIONSBUDGETARY POLICYBUDGETINGBUDGETING PROCESSCAPACITY BUILDINGCAPACITY CONSTRAINTSCAPACITY-BUILDINGCASH BALANCESCASH FLOWCASH FLOWSCASH MANAGEMENTCASH MANAGEMENT SYSTEMSCASH RATIONINGCASH RESERVESCENTRAL AGENCIESCENTRAL GOVERNMENTCHECKSCIVIL SERVANTSCIVIL SOCIETY ORGANIZATIONSCOMPETITIVE PROCUREMENTCONTINGENT LIABILITIESDEBTDEBT DYNAMICSDEBT SERVICINGDEBT SERVICING COSTSDEBT SUSTAINABILITYDECISION-MAKERSDEFICITSDEVELOPING COUNTRIESDISCRETIONARY PROGRAMSDONOR AGENCIESDONOR FUNDSECONOMIC SHOCKSECONOMIC VOLATILITYECONOMIES OF SCALEEFFICIENCY IMPROVEMENTSEFFICIENT USEEFFICIENT USE OF PUBLIC RESOURCESENABLING ENVIRONMENTEQUIPMENTEXPENDITURE ALLOCATIONSEXPENDITURE CEILINGSEXPENDITURE CONTROLEXPENDITURE CONTROL SYSTEMSEXPENDITURE CONTROLSEXPENDITURE DATAEXPENDITURE DECISIONSEXPENDITURE ENVELOPESEXPENDITURE LEVELSEXPENDITURE OBLIGATIONSEXPENDITURE PRIORITIESEXPENDITURESEXTERNAL ASSISTANCEEXTERNAL AUDITEXTERNAL AUDITORSEXTERNAL SHOCKSFINANCE MINISTRYFINANCIAL ACCOUNTABILITYFINANCIAL COMPLIANCEFINANCIAL RESOURCESFISCAL CONTROLFISCAL DATAFISCAL DECENTRALIZATIONFISCAL FORECASTSFISCAL IMPLICATIONSFISCAL INFORMATIONFISCAL RELATIONSFISCAL RISKFISCAL RISKSFISCAL SPACEFISCAL STABILITYFISCAL SUSTAINABILITYGOVERNMENT MINISTRIESGOVERNMENT OWNERSHIPGOVERNMENT POLICYGOVERNMENT PRIORITIESHUMAN RESOURCESINTERNAL AUDITINTERNAL AUDIT SYSTEMSINTERNAL CONTROLSINTERNATIONAL BANKINVESTINGLABOR MARKETSLEGAL FRAMEWORKLEGISLATIVE SCRUTINYLICENSESLOCAL CAPACITIESLOCAL CAPACITYLOCAL GOVERNMENTSMACROECONOMIC MANAGEMENTMACROECONOMIC STABILITYMACROECONOMIC SUSTAINABILITYMEDIUM-TERM EXPENDITUREMEDIUM-TERM EXPENDITURE FRAMEWORKSMINISTRIES OF FINANCEMINISTRY LEVELMINISTRY OF FINANCEMONETARY FUNDNATIONAL DEVELOPMENTNATIONAL GOVERNMENTNATURAL DISASTERSOPPORTUNITY COSTOPPORTUNITY COSTSPERFORMANCE CULTUREPERFORMANCE INDICATORSPOLICY DECISIONSPOLICY GOALSPOLICY OBJECTIVESPOLICY PRIORITIESPOLICY-MAKERSPOLITICAL ECONOMYPRIORITIES OF GOVERNMENTPRIVATE SECTORPROGRAMSPROVISIONINGPUBLICPUBLIC ACCOUNTSPUBLIC ENTITIESPUBLIC EXPENDITUREPUBLIC FINANCEPUBLIC FINANCE MANAGEMENTPUBLIC FINANCIAL MANAGEMENTPUBLIC FUNDSPUBLIC RESOURCESPUBLIC SECTORPUBLIC SECTOR ENTITIESPUBLIC SECTOR SPECIALISTPUBLIC SERVANTSPUBLIC SERVICEPUBLIC SERVICESQUALITY OF PUBLIC SPENDINGRECURRENT EXPENDITUREREFORM EFFORTSREFORM PLANREFORM PRIORITIESREFORM PROCESSREFORM PROCESSESREFORM PROGRAMREFORM PROGRAMSRESOURCE AVAILABILITYRESOURCE CONSTRAINTSREVENUE ESTIMATESREVENUE FORECASTINGREVENUE PROJECTIONSSECTOR CEILINGSSERVICE DELIVERYSTATE OWNED BANKSSTATE OWNED ENTERPRISESSTATED OBJECTIVESSTRATEGIC PLANSSUB-NATIONALSUB-NATIONAL GOVERNMENTSUB-NATIONAL GOVERNMENTSSUBSIDIARYSUSTAINABILITY ANALYSISTAXTAX ADMINISTRATIONTECHNICAL ASSISTANCETRANSPARENCYTRANSPARENT ARRANGEMENTSTRUST FUNDTURNOVERUNCERTAINTYUNNECESSARY DUPLICATIONUTILITIESWorld Bank10.1596/16260