Public financial management reforms and fiscal policy-a qualitative content analysis of the impact of PFM reforms on country budget income in Sub-Sahara Africa

         Public Financial Management (PFM) reform is a central fiscal policy feature. However, previous studies and reforms in developing countries have been mixed, with literature mainly taking two broad approaches: Descriptive studies seeking to explain the types of reforms undertaken, modelled along governments' establishment of new institutions enactment of fiscal legislation budgeting and accounting processes re-engineering and adoption of information technology. The second approach by researchers has been along comparative assessments, limited to cross-country comparisons of PFM performance ratings. This research assumed an impact based qualitative content analysis to establish the necessary PFM reform policy factors that supports country PFM reforms that could contribute towards budget income in Kenya and Rwanda. We find that Political will and government stance on corruption: unique country context and clarity on reform areas including the adoption of the measurable results framework are critical. Others such as Reforms visibility Processes and institutionalisation of reforms as well as Performance standards, rewards and sanctions were all necessary policy factors for PFM reforms to potentially contribute towards budget impact as evidenced in our case for Rwanda. In contrast, limitation of such policy factors in PFM value chain undermines the fiscal impact of reforms as found in Kenya.         Keywords: Public Financial Management, Kenya, Rwanda, PEFA, budget                                                     

OECD Journal on Budgeting, Volume 2018 Issue 1

A case for Kenya and Rwanda

Public financial management reforms and fiscal policy-a qualitative content analysis of the impact of PFM reforms on country budget income in Sub-Sahara Africa (g2g9741a)