Framework for engaging on public financial management (PFM)
Sound public financial management (PFM) is widely recognised as an important facet of effective governance. Australia's aid policy prioritises investments in governance, including PFM where appropriate, because where governance is poor, development outcomes are also poor. Countries with sound PFM are better placed to contribute to global economic growth, and provide Australia with opportunities to promote its interests internationally. Functional partner government PFM increases the impact and effectiveness of Australian aid.
On 3 May 2017 DFAT released a Framework for engaging on public financial management: increase the impact of your program. The framework sets out why Australia should engage on PFM in countries that receive Australian aid, and provides guiding principles for deciding whether, where and how to engage.
The framework is primarily intended for use by DFAT officials, but the approach it sets out reflects good practice in engaging on PFM in international development assistance and is relevant to development practitioners and others who collaborate with the Australian aid program on PFM issues.