Quality of Public Financial Management in Bangladesh: An Analysis from PEFA Framework Perspective
- Sk. Sharafat Hossen
- Jun 2015
- IOSR Journal Of Humanities And Social Science (IOSR-JHSS)
- International
In recent years, the importance of sound public financial management (PFM) system is growing in developing countries because the efficient use of funds from foreign assistance highly depends on the public financial management system of the recipient country. As a developing country with moderate degree of dependency on foreign assistance, Bangladesh also needs a sound PFM system which will ultimately support better governance to achieve the pro-poor developmental objectives of the government. This study mainly tries to measure the quality of PFM system in Bangladesh on the basis of Public Expenditure and Financial Accountability (PEFA) assessment done by the World Bank in 2006 and Government of Bangladesh (GoB) in 2010. The empirical results show that the quality of PFM in Bangladesh is fairly low. Most of the performance indicators ranked either ‘D’ or ‘C’. Bangladesh should make action plan to raise most of its ‘D’ and ‘C’ ranked indicators to at least ‘B’ ranked indicators, and to do that the government should address the causes of lower performance in the six main dimensions of PFM system.
