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financial management information systems

Joining forces to maximize resources for Bhutan’s citizens

Savinay Grover's picture
Public financial management signing
The Multi-Donor fund for Bhutan's Public Financial Management was launched September 21st in Thimphu

Several years ago, a newspaper cartoon in a neighboring country caught everyone’s attention when it depicted the government machinery as a big pipe in which lots of water was being poured from one side as taxpayer’s money and only a drop reached the poor on the other end. The water, representing the funds were being lost due to holes in the pipe. The holes were depicted as inefficiency, wastage, corruption etc. Globally, governments lose trillions of dollars due to various inefficiencies, and lack of proper controls and oversight. Citizens suffer as they do not receive the services that they are promised.

Bhutan provides lots of attention to good governance, which is also one of the pillars of Gross National Happiness. Public Financial Management (PFM) is an important element of good governance and delivering high quality of services to citizens as it’s comprised of budgeting, revenue, procurement, accounting and reporting, internal controls and institutional oversight. Sound PFM systems play an important role in strengthening the efficiency, accountability and transparency of the Government systems. Every dollar, every Ngultrum saved through sound PFM systems mean that more resources are available for better schools, hospitals, roads, and other services.

Cows and Television: Rolling out a New System for Financial Management Information in Cambodia

Saroeun Bou's picture



On a recent visit to provincial treasury offices to learn about the Financial Management Information Systems, or FMIS, that members of our Governance teams helped introduce, the conversation turned to cows.

Staff compared switching from manual pen-and-paper to an automated state-of-the-art public finance management system as akin to making a cow watch television. Cows, they explained, are as unfamiliar with television as some treasury staff are with computers, the internet, and FMIS.

Fortunately, the relevance of the analogy was short-lived. Treasury staff have overcome the learning curve and the new system has proven to be helpful. I consistently heard praise about the system’s usefulness because it provides useful financial information, reduces the amount of repetitive work, and generates timely reports. That is a big change.

Do governments report on where the money goes?

Cem Dener's picture

The discussions on budget transparency and open data have been gaining momentum over recent years. Not only is it important that governments publish budget data on web sites, but also that they disclose meaningful data and full picture of financial activities to the public. The question is, how much of the disclosed information and documents are reliable? What is the scope of disclosed information? Is there any reliable information about other important aspects of fiscal discipline and transparency?

A number of fiscal transparency instruments and guidelines have been developed by civil society groups and international organizations to evaluate the existence, regularity, and contents of certain key budget documents published in the public domain and whether the information comply with international standards. However, current instruments do not concentrate on the source and reliability of published information, as well as the integrity of underlying systems and databases from which governments extract data.