OVERVIEW OF PFM ACT AND BUDGET PREPARATION Notes

Description

A good PFM management help in creating a conducive
environment for investments, job creation and poverty reduction
at both levels of government.
• Objectives of PFM Act:
1. Safeguard financial autonomy of both levels of government
within a unitary system of devolved government and in line with
the constitution.
2. Firmly anchor the Act under Article 201 of the constitution which
deals with the ‘Principles of public finance’
3. To ensure the PFM Act incorporated best international practices.
This was achieved by basing the policy framework on the five
core areas of public finance
4. To modernize and consolidate the many PFM laws we currently
have into one integrated PFM Law—an Organic Budget Law.