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Planning and budgeting

Understanding and reforming public expenditure management

Guidelines for understanding publice expenditure management (PEM)

Authors: ; Oxford Policy Management
Publisher: Department for International Development, UK, 2001

Full text of document

This report provides an understanding of the approach to Public Expenditure Management (PEM), sets out basic principles, and presents some diagnostic tools to utilise in the design and implementation of DFID support to PEM reforms in partner countries.

The guidelines are aimed at governance advisers and economists within DFID, however others in DFID, and officials in other development agencies and in developing or transition countries may also find them useful.

The report is divided into five areas:

  • Introducing PEM guidelines
  • Defining PEM: provides an understanding of the objectives and components of PEM. It also provides references to investigate technical aspects of PEM in more detail
  • Starting the change process: a guide to diagnosis: outlines the three key steps to completing a comprehensive diagnosis and provides a framework for diagnosing strengths and weaknesses of a PEM system
  • Designing PEM reform: identifies issues to consider in providing advice to governments on the pace and sequencing of reform. Also provides an overview of some of the change management issues relevant to PEM reform
  • Debates and key issues in PEM: builds awareness of some of the key debates and issues in PEM.