Public Expenditure & Financial Accountability (PEFA)

    The National Executive Council (NEC) in 2014 approved a Policy directive on the implementation of the PEFA Program in PNG. As the lead agency in PFM, the Department of Finance in July 2014, led a Government team in conducting the PEFA Self -assessment using the Public Expenditure and Financial Accountability Public Financial Management (PEFA PFM) Performance Measurement Framework as a tool in evaluating the country's public financial management processes and systems. This was through the application of a set of internationally accepted and recognized high level PEFA performance indicators in the PEFA 2011 Framework. The PEFA Framework has been employed by an increasing number of financial management institutions and governments in over 120 countries.

    The PEFA Self-assessment was undertaken against PFM out-turns in Budget Credibility; Cross-cutting issues in Comprehensiveness and Transparency of Budget; the Budget cycle in Policy based Budgeting, Predictability and Control in Budget Execution, Accounting, Recording and Reporting; External Scrutiny and Audit; and, into Donor practices. The Government then invited IMF to conduct the External Assessment. In May 2015, the External Assessment Report was reviewed by the Reviewer's Panel. Quality assurance by the International PEFA Secretariat immediately followed and the Report was finalised in August. Whilst the review was being undertaken the Government team proceeded to draft the PEFA Road Map, a document outlining key PFM reform areas. The PEFA Road Map 2015 – 2018 and Assessment was launched in September 2015.

    At the finalisation of the Assessment Report Cabinet then issued another Policy Decision in October 2015 on the implementation of the PEFA Reforms in the PEFA Road Map 2015-2018 and Assessment Report.

    Related links to PEFA websites;

The PEFA road Map 2015- 2018

The PEFA Road Map has prioritised actions for reforms over the next three years from 2015 – 2018. The immediate key priority actions are now under implementation.

Obtain further details from or contact the PEFA Secretariat office on (675) 32 8 8 406 or (675) 32 8 8 605.