Public Expenditure Management

Publication | July 2004

Public expenditure management (PEM) is a central instrument of economic and development policy. The three over-all goals of PEM are fiscal discipline, strategic resource allocation and good operational management. 

Public expenditure management (PEM) is a central instrument of economic and development policy. The three over-all goals of PEM are fiscal discipline, strategic resource allocation and good operational management. Effective PEM is also a key component in good governance, which rests upon what the ADB has termed the 'four pillars' of accountability, transparency, predictability and participation. Accountability holds officials responsible for their actions. Transparency involves ensuring access to relevant in-formation at low cost. Predictability results from an environment in which laws and regulations are clear, known in advance, and uniformly and effectively enforced. Participation requires the existence of channels through which reliable information is provided, enabling all stakeholders at all levels to be involved in the consultation and decision-making process.

Additional Details

Type
Series
Subjects
  • Governance and public sector management