Understanding the role of consultants in public finance management

 

Public finance consulting is very important. It, therefore, needs a good approach. First, it is important to understand who the private sector consultant is accountable to, the country to which they are helping or the donor paying their bill? Private sector consultants are used in managing and implementing public finance tasks, yet questions of accountability are under-examined.

It is therefore important for donors to pay more attention to role consultants are playing in the reform of public finance management. The World Bank alone generates approximately 40000 consultant contracts every year.

There is an increase in the use of public finance consultants in the management of public finance and public sector reform generally. It is yet surprising that there is very little attention on the impact and role of consultants at the country level.

What should we concentrate on then?

While public consulting firms are in business to offer services and get paid for specialized and professional services, it is important to make sure consultants are accountable and deliver what they are paid to do. That is why experienced consultants like finaceDTA are always doing their best to deliver quality services at all times.

Recommendations

To ensure that everything runs on smoothly, it is important to identify accountability lines at the start of consultancy contracts and the benefits of the recipient government’s ability to interrogate and question the advice of the consultant and not just going by everything the consultant says.

Some consultants’ habits of grafting the best practices in the private sector onto public sector reform can cause problems. Local limitations such as lack of experienced computer operators and erratic power supply should be taken into account when introducing new computerized budget management systems. Fortunately, when looking for public finance consulting, there are a lot of firms to choose from and most of these firms are always improving to be competitive.

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