Topic: Transparency and accountability.
6) What do you understand by Public finance management system & how it has the potential of increasing transparent & accountability? Also elaborate on the challenges of adopting it. (250 words)
why this question:
The question is about discussing Public finance management system and significance of transparency and accountability therein.
Key demand of the question:
The question is straightforward from the syllabus and doesn’t require much deliberation.
Elaborate – Detail upon the topic by giving an in depth insight as to how and why it occurred, or what is the particular context. You must provide for a wider account of the same.
Structure of the answer:
In a few introductory lines define what you understand Public finance management system.
In brief discuss –
- What is Public finance management system? – trace its evolution.
- It is an end-to- end solution for processing payments, tracking, monitoring, accounting, reconciliation and reporting. It is implemented by Controller General of Accounts and administered by the Department of Expenditure, both in Ministry of Finance.
- Discuss how transparency and accountability are key to the PFMS.
- What can be done to implement these virtues in it ?
- Justify the above points using suitable examples.
Conclude with significance of transparency and accountability in good governance and functioning of public systems.