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Author Topic: PFM: what is it?  (Read 11451 times)

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Reg

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PFM: what is it?
« on: February 15, 2011, 10:53:18 GMT »
'Allo! It's me again.

So go on tell me what is PFM?

Cheers,

Reg

STONE

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Re: PFM: what is it?
« Reply #1 on: February 15, 2011, 11:21:21 GMT »
Interesting question.

Carole and Nico Pretorius did a literature review of PFM Reform in 2009 and noted that "there is no universally agreed definition of PFM".  see http://www.sida.se/Svenska/Om-oss/Publikationer/Visa-publikation/?iframesrc=http://www2.sida.se/sida/jsp/sida.jsp%3Fd=118%26a=45381&language=en_US

There appear to be bits of a definition.  It all seems a little unsatisfactory.  I was asked the same question, well it was put a bit differently to yours: "How would you define PFM?" 

I have used this when presenting on PFM.

"Public Financial Management is: the application of laws, institutions, processes, and actions that determine how the Legislature and Government through their agencies and other agents:

collect and borrow money from households and corporations and other Governments and External Financing Agencies;

spend that money to regulate the economy and deliver public services to  households and corporations and NPISHs (non-profit institutions serving households); and

account to citizens for the collection and use of that money.

Napodano

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Re: PFM: what is it?
« Reply #2 on: February 15, 2011, 11:35:55 GMT »
Reg,

Nice to have you back. I know you are a man of straight talk and fast driving.

Well, how about this definition:

'If you are a Arsenal fan, you want the team to win a cup and in the process make supporters enjoy each match without raising the ticket prices too high.'

Not always easy as proved by the not-so-great performance of Capello in the case of England  ;)


Legend:
'Arsenal'= a country of your choice
'win a cup' = macroeconimic stability, sustainable debt, good credit rating and low interest rates
'make supporters enjoy each match' = provide citizens with quality service delivery especially in social sectors
'ticket prices' = tax rates
'Capello' = the Prime Minister of the country of your choice

« Last Edit: September 06, 2011, 08:43:32 GMT by Napodano »

John Short

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Re: PFM: what is it?
« Reply #3 on: February 15, 2011, 12:14:54 GMT »
The problem with using Arsenal is that it is a long time since they won anything so what about realising expectations and stability?  I suppose the stability is there through the not winning anything for so long!

Napodano

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Re: PFM: what is it?
« Reply #4 on: February 15, 2011, 12:34:07 GMT »
The problem with using Arsenal is that it is a long time since they won anything so what about realising expectations and stability?  I suppose the stability is there through the not winning anything for so long!

Time for 'regime change' of sort   ;D

Reg

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Re: PFM: what is it?
« Reply #5 on: May 26, 2011, 20:12:18 GMT »
frankly i didn't get it - wads quite interested when the cipfa lads mentioned PFM but couldn't follow the story...
must dash there's a yank looking for a cab...

cheers, Reg

harnett

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Re: PFM: what is it?
« Reply #6 on: May 30, 2011, 15:09:49 GMT »
Reg

This definition may be better to impart to your fares:
PFM -  U.S. military slang to describe how weapon systems that are based on difficult to understand scientific principles operate (Pure F***ing Magic)

Napodano

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Re: PFM: what is it?
« Reply #7 on: September 12, 2011, 09:21:27 GMT »
Hey, dude;

now that you know the basics, you may want to dig further in the PFM mechanics by going to:

http://pfmboard.com/index.php?topic=1250.0

Martin Johnson

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PEM labels and meanings
« Reply #8 on: September 13, 2011, 06:49:30 GMT »
One for Reg .... in my experience, one of the great sources of confusion in PEM/PFM is the use and meaning of the many labels in common parlance. What do we as individual practitioners mean when we say 'PFM', 'PEM', 'programme', 'output', 'outcome', 'medium term', 'MTEF', 'objective' (you get the picture) .... and what does Reg (or any of us) understand when we hear each of these terms. Not quite a dialogue of the deaf of course, but often a dialogue of the different.

Anyway I was musing on this when I was reading Napodano and others discussing the meaning of PFM in the 'Find quick answers here' section.

It made me reflect on my own difficulty with the concepts of 'economy, efficiency and effectiveness'. Now, we all, of course, understand what each of these concepts mean (... don't we?), but how does one explain what they mean to a non-specialist audience in particular. When faced with the task of explaining the concepts some years ago in Albania during training linked to the introduction of new PB procedures there I got a bit stuck ... until I found inspiration in a certain Mr Scholes.

In the company of my good friend Saimir, I happened to be watching a Champion's League match involving Manchester United (being a devotee of a more exotic brand of the game emanating from a small town in the North East of England, I don't recall the particular match). Anyway, with the score at nil - nil, Paul Scholes was introduced as a substitute towards the end of the game. No sooner had he come on when he had his one and only shot on goal which went in. The match ended not long after. This gave me my eureka moment (or perhaps my Scholes moment) ...

Economic - he used the minimum number of non-zero shots on goal possible (one)
Efficient - the cost in terms of shots used per goal scored were the lowest possible (one shot, one goal, none wasted or unnecessarily used)
Effective - Manchester United won the game 1 - 0

If only life, PEM/PFM and other things were so simple

Napodano

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Re: PFM: what is it?
« Reply #9 on: September 15, 2011, 07:36:23 GMT »
Too much soccer metaphors!

It is about time for a new metaphor of PFM from a female PFMBoarder. Anybody there?

Napodano

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Re: PFM: what is it?
« Reply #10 on: May 17, 2012, 05:58:02 GMT »
Thanks to our IT consultant, I found this video on PFM.

Didactic and well done!

http://youtu.be/Iwv0aWXKujk
« Last Edit: May 17, 2012, 06:45:12 GMT by Napodano »

esmael

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Re: Shadow Budgeting: What is it?
« Reply #11 on: December 19, 2012, 13:54:18 GMT »

Shadow Budgeting: What is it? Please give examples.

Thank You

Napodano

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Re: Shadow Budgeting: What is it?
« Reply #12 on: December 20, 2012, 08:02:18 GMT »

Shadow Budgeting: What is it? Please give examples.

Thank You

Find my answer at http://pfmboard.com/index.php?topic=6664.0

 

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