Examining public finance
The European Commission carries out assessments of public financial management issues in beneficiary countries when it prepares its country strategy papers and programmes. Such assessments are carried out regularly and are used within budget support programmes notably.
Assessment relies on exploring two key elements:
- An assessment of the quality of the country's public financial management system using the ‘Public Financial Management – Performance Measurement Framework’, which comes from the PEFA Initiative (Public Expenditure and Financial Accountability).
- An assessment of the public financial management reform process also takes place: government’s political will and current efforts to improve its public finances; the relevance and level of implementation of a country’s reform strategies; and the usefulness and influence of any development programmes that are funded by donors to support the reform of public financial management.
The PEFA assessments reports
Here you can find the PEFA Assesments Reports organized by alphabetical order.
Improvements in public financial management systems are seen as essential for the proper implementation of European Union aid policies and for the lasting achievement of development objectives.
Improvements in public financial management are viewed by the European Commission as both an eligibility criteria for – and objective of – budget support.
The European Commission adopts a rigorous and dynamic interpretation to its assessment work in this area – no attempt is made to establish minimum conditions; instead the emphasis is on a partner country’s commitment to change and the future direction of its public financial management systems.
Further details about these topics can be found in EuropeAid’s Budget Support Guidelines [666 KB] .