Public Financial Management
Public Finance Management (PFM) is the backbone of credible government action. It determines how well public money is planned, spent, controlled, and reported - and whether policies translate into real results for citizens.
Across the Western Balkans, Armenia, Moldova, and Ukraine, major progress has been made in aligning PFM laws and systems with EU and international standards. Yet a key challenge remains: implementation. The priority today is not more strategies or laws, but making existing systems work in practice - consistently, across institutions, and under real operational pressures.
Five takeaways for leaders:
- PFM is a leadership issue, not just a technical one
- Laws matter - but implementation matters more
- Strong procurement and investment management protect fiscal space
- Managers must own risks and controls
- Real reform happens through practical tools, follow-up, and peer learning
Why PFM matters for leaders
Strong PFM enables governments to:
- Deliver reforms on time and within budget
- Protect public resources through stronger controls and oversight
- Improve trust by increasing transparency and accountability
- Support EU accession and recovery by meeting fiscal and governance requirements
- Make better decisions using reliable financial and performance data
PFM is therefore not a technical back-office function - it is a leadership tool for managing change, risks, and results.
Our focus: From rules to results
We support administrations in moving from “compliance on paper” to “performance in practice.” This means helping ministries and agencies close common gaps, such as:
- Weak follow-through on reforms and audit findings
- Fragmented coordination between ministries, treasuries, and oversight bodies
- Capacity shortages in internal audit and procurement
- Limited managerial ownership of internal controls and risk management
- Poor linkage between public investment decisions and available budgets
Our approach prioritises practical implementation, accountability, and learning-by-doing.
What We Support
1. Better Use of Public Money
We help governments strengthen:
- Budget planning and execution
- Public investment management, so projects are well selected, affordable, and aligned with priorities
- Treasury and cash management, especially in high-pressure environments
- Procurement systems, focusing on value for money, competition, and integrity
2. Stronger Accountability and Control
We support:
- Public Internal Financial Control (PIFC) systems that actually work in daily management
- Clear managerial responsibility for risks and controls
- Stronger internal audit practices and follow-up
- Better use of external audit findings to improve performance, not just compliance
3. Practical Capacity Building
Instead of one-off trainings, we focus on:
- Small, targeted implementation clinics
- Peer-to-peer learning with EU Member States
- Development of usable tools (templates, checklists, dashboards)
- Follow-up support to ensure changes are applied, not forgotten
How We Work
Our support is built around a simple principle: every activity must lead to a concrete result.
We combine:
- Regional dialogue to share solutions to common problems
- Hands-on work on real institutional bottlenecks
- Peer review and follow-up, so reforms stick
- Alignment with SIGMA principles and EU reform priorities
This ensures that learning translates into measurable improvements in how public finances are managed.
Looking Ahead
Public Finance Management is central to:
- The EU Growth Plan
- Post-crisis recovery and reconstruction
- Green and sustainable investment
- Long-term fiscal stability
We remain committed to supporting PFM as a core leadership function, reinforcing integrity, strategic planning, and regional cooperation. By focusing on implementation, accountability, and results, we help administrations move closer to the European Administrative Space - not only in form, but in everyday practice.