Bhutan Public Financial Management Performance Report

Abstract

The Royal Government of Bhutan (RGoB)
 places high priority on good governance, and sound public
 financial management is one of the key elements of good
 governance. Over the past decade, Bhutan has been making
 steady progress in strengthening public financial management
 covering budget preparation, budget execution, control,
 reporting and oversight. There is increased legislative
 oversight on budget approval through a Finance Committee and
 of audit reports through a Public Accounts Committee. As in
 other countries, the public at large has become more
 demanding in terms of transparent and efficient government.
 The purpose of the assessment of the Public Financial
 Management (PFM) performance of the Royal Government of
 Bhutan (RGoB) was threefold: (i) to assess the quality
 (strengths and weaknesses) of PFM in the country against
 generally accepted international standards; (ii) to assess
 progress since the last Public Expenditure and Financial
 Accountability (PEFA) assessment in 2010, and (iii) to
 provide RGoB and other stakeholders with a common source of
 information as a basis for further dialogue on PFM reforms.
 This assessment was carried out under the approach of full
 ownership by RGoB and self-assessment by its officials, with
 technical support from World Bank and International Monetary
 Fund (IMF).