| Summary/Abstract |
Government management of public funds plays a major role in a country's development process. A well‐managed financial system supports public‐service quality and equity, enhances the efficiency and effectiveness of public programs and government work, and limits corruption. In addition, international donors (e.g., the IMF and World Bank) seek the best use of the financial and nonfinancial aid they provide to countries in need; thus, they support effective management of public funds. A budgeting system is considered a keystone for any public financial system. One could argue that, public financial management (PFM) — a government's revenues, expenditures and budgeting process — is the primary driver of all activities in a given country, regardless of its political, cultural and economic systems. Additionally, the manner in which the public financial system is managed has a significant impact on all sectors — public, private and nonprofit.
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