Public Finance Management – Fundamentals virtual training

Training objectives

This training aims to provide you with an introduction to the building blocks and architecture of a typical Public Finance Management (PFM) system. In practice, you will learn the different phases of an annual state budget, from formulation to oversight, e.g., financing, internal control, medium term frameworks, accountancy and transparency. PFM systems are as varied as their countries’ histories, cultures and institutions but public policies can only succeed when properly translated into the budget. This course forms the basis upon which framework for realistic public policies can be developed. 

Understanding of PFM and its role in development is key to the Global Gateway Investment Agenda with its 360-degree approach and in particular with respect to the Collect More, Spend Better Agenda of the Commission (e.g. public investment management, public procurement or debt management which are critical for effective and sustainable investments). Understanding PFM is also essential for the assessment of country’s eligibility to budget support.

Content 

• Module 1 - Budget Cycle: tasks and key institutions involved in the typical public financial management process known as the Budget Cycle.
• Module 2 - Budgetary & Fiscal Analysis: the government ‘fiscal constraint’; how to read a Statement of Government Operations; definitions of the ‘deficit’; how to finance the deficit; how PFM can contribute to macro-fiscal stability (2 sessions).
• Module 3: Control Systems: three core control processes to be examined – budgetary control, internal control and external control. This will include management controls as well as internal and external audit; how are PFM control systems affected by a crisis of the magnitude of COVID-19 or similar shocks.

Target audience 

INTPA staff / Delegations and Headquarters, no background in public finance or economics is required. Open to staff from NEAR, MENA, ECHO, TRADE, FPI, and EEAS, in Delegations and at Headquarters. Also open to EU Member States’ staff upon seats availability and to other stakeholders upon request.

Training materials 

The presentation is now available below.