World Bank2014-01-062014-01-062013-01https://hdl.handle.net/10986/16507This note provides guidance on planning, prioritizing, and accessing appropriate capacity for Public Financial Management (PFM) reform in Pacific Island Countries (PICs). It is intended for use by government officials, donor agencies, and consultants. It complements, and is consistent with, extensive previous work carried out by the Pacific Financial Technical Assistance Center (PFTAC) and joint efforts by the Public Expenditure and Financial Accountability (PEFA) Secretariat, International Monetary Fund (IMF), and European Commission. Recommendations are based on a review of the literature and experiences of PFM reform in the region to date, with a focus on issues that are of particular relevance in PICs. Author start point that creative approaches are sometimes needed to PFM reform in Pacific Countries because of the extent and duration of capacity constraints. Authors have 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, broader options for meeting capacity gaps should be considered, including accessing ongoing support for specialized tasks or even the wholesale 'outsourcing' of certain functions.en-USCC BY 3.0 IGOACCESS TO INFORMATIONACCOUNTABILITY ARRANGEMENTSACCOUNTABILITY FOR RESULTSACCOUNTABILITY SYSTEMSACCOUNTINGACCUMULATION 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 LIABILITIESCONTRACTED SERVICESDEBTDEBT 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 SCRUTINYLOCAL CAPACITIESLOCAL CAPACITYLOCAL GOVERNMENTSMACROECONOMIC MANAGEMENTMACROECONOMIC STABILITYMACROECONOMIC SUSTAINABILITYMANAGERSMEDIUM-TERM EXPENDITUREMEDIUM-TERM EXPENDITURE FRAMEWORKSMINISTRIES OF FINANCEMINISTRY LEVELMINISTRY OF FINANCEMONETARY FUNDNATIONAL DEVELOPMENTNATIONAL GOVERNMENTNATURAL DISASTERSOPPORTUNITY COSTOPPORTUNITY COSTSORGANIZATIONAL CAPACITYPERFORMANCE CULTUREPERFORMANCE INDICATORSPOLICY DECISIONSPOLICY GOALSPOLICY OBJECTIVESPOLICY PRIORITIESPOLICY-MAKERSPOLITICAL ECONOMYPRIORITIES OF GOVERNMENTPRIVATE SECTORPROBABILITYPROGRAMSPROVISIONINGPUBLICPUBLIC ACCOUNTSPUBLIC ENTITIESPUBLIC EXPENDITUREPUBLIC FINANCEPUBLIC FINANCE MANAGEMENTPUBLIC FINANCIAL MANAGEMENTPUBLIC FUNDSPUBLIC RESOURCESPUBLIC SECTORPUBLIC SECTOR ENTITIESPUBLIC SECTOR SPECIALISTPUBLIC SERVANTSPUBLIC SERVICEPUBLIC SERVICESQUALITY OF PUBLIC SPENDINGRECURRENT EXPENDITUREREFORM EFFORTSREFORM IMPLEMENTATIONREFORM PLANREFORM PRIORITIESREFORM PROCESSREFORM PROCESSESREFORM PROGRAMREFORM PROGRAMSREFORMSRESOURCE AVAILABILITYRESOURCE CONSTRAINTSREVENUE ESTIMATESREVENUE FORECASTINGREVENUE PROJECTIONSSECTOR CEILINGSSERVICE DELIVERYSTATE OWNED ENTERPRISESSTATED OBJECTIVESSTRATEGIC PLANSSUB-NATIONALSUB-NATIONAL GOVERNMENTSUB-NATIONAL GOVERNMENTSSUSTAINABILITY ANALYSISTAXTAX ADMINISTRATIONTRANSPARENCYTRANSPARENT ARRANGEMENTSTRUST FUNDTURNOVERUNCERTAINTYUNNECESSARY DUPLICATIONUTILITIESWorld Bank10.1596/16507