More effective and efficient policy-making can be realised by a public finance management system that places transparency and the seamless sharing of data at its heart. A PFM system should ensure that funds reach their intended recipients and are used for their intended purpose. And it must give the central budgetary authority accurate and regular reports of how its resources are being used, providing it with the information necessary to formulate and design fiscal policy.
See: KKR Partners with Securitize to Launch Part of Health Care Fund on Avalanche’s Public Blockchain
The advent of digitalisation promised simplification and efficiency. However, since each entity involved in the finance management and budget delivery process uses their own systems, the consequence is often a huge duplication of effort — financial and nonfinancial reporting conducted anew at every level, requiring manual reconciliation. This duplication wastes time and resources. A more automated process would not only cut down on this, but also reduce the incidence of costly mistakes. A key challenge in the construction of an efficient PFM system is to address these problems.
Table of Contents
Improving public policy and delivery: More effective and efficient policy-making can be realised by a public finance management system that places transparency and the seamless sharing of data at its heart.
Existing challenges: Building a dedicated public finance management system that overlays internal ones will help aid data capture and sharing, delivering for the public good.
See: Canada to Launch ‘Digital Ambition 2022’ Public Consultation For Digital ID Framework of Federal Public Services
Economic advantages of improvements: A modern PFM system would not only save on overhead and administrative costs, but bring benefits through fraud
and waste reduction, as well as better tracking what how impactful spending is.
Applications in capital markets: Green bond issuers and investors will benefit from a modern PFM system, tracking more efficiently how proceeds are spent and regulations are adhered to.
Towards better public finance management: More effective and efficient policy-making can be realised by a public finance management system that places transparency and the seamless sharing of data at its heart.
Public finance management systems have existed in one form or another for a long time but, in many cases, have failed to develop the sort of streamlined interinstitutional functionality now needed.
Download the 24 page PDF report –> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada’s Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
