The Use of Data Analytics Techniques to Assess the Functioning of a Government's Financial Management Information System : An Application to Pakistan and Cambodia
Public financial management enables government to implement policy. Financial management information systems are a central element of PFM in that they facilitate government financial transactions and subject them to rigorous budgetary controls. The...
| Main Authors: | , , , , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/226121546531748578/The-Use-of-Data-Analytics-Techniques-to-Assess-the-Functioning-of-a-Governments-Financial-Management-Information-System-An-Application-to-Pakistan-and-Cambodia http://hdl.handle.net/10986/31092 |
| Summary: | Public financial management enables
government to implement policy. Financial management
information systems are a central element of PFM in that
they facilitate government financial transactions and
subject them to rigorous budgetary controls. Therefore, the
adequate use of FMIS systems supports the implementation of
fiscal rules and provides the basis for holding the
executive accountable for implementing the budget. Yet, the
integrity of expenditure transactions and effectiveness of
budget controls is rarely assessed. This paper explores the
meaning of adequate use of FMIS systems and points to data
analytics techniques that can shed light on how the use FMIS
systems affects expenditure data integrity and effectiveness
of budget controls. This methodology is applied to Pakistan
and Cambodia, which reveals two very different problems. In
Pakistan the analysis of the transactions profile suggests
that a large share of the budget is not subjected to FMIS
internal controls. In Cambodia the majority of the budget is
channeled through the system, but the method exposes very
large advances to commercial bank accounts that are
subsequently drawn upon but outside the system. Both of
these raise concerns about the effectiveness of the FMIS
system. Deploying data analytics techniques can help assess
whether FMIS systems serve form or function. Judging a
system by its use is informative about governments'
revealed preferences in expenditure management. This paper
puts the spotlight on the foundation of expenditure data and
advocates for a transparent, methodical and evidenced based
approach to FMIS deployment and expenditure management reform. |
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