Introduction: The Meaning, Content and Objectives of Public Financial Management

Abstract

The last comprehensive reference books on public expenditure management topics were published more than ten years ago. Since then, the concept of public expenditure management has widened to become public financial management (PFM); the literature has expanded considerably; the global economic and financial crisis has highlighted the importance of governments developing strong systems for managing their finances; and what constitutes “best practice” or even “good practice” in the design of such systems has changed significantly. PFM is now recognized as an academic subject with its roots in public policy, economics, law, political science and business studies. Its foundations are closely connected with intellectual developments of the last 20 years such as the New Public Management (NPM) and New Institutional Economics.