Question Tag: Public Sector Reforms

i) Methods Proposed by New Public Management to Improve Public Financial Management:

1. Decentralization of Management: This involves the decentralization of decision-making processes, giving more autonomy to local managers, and reducing the concentration of power at the central level.
2. Performance Measurement and Results-Oriented Management: This includes setting clear performance targets and using performance indicators to measure and manage the effectiveness of public services, ensuring that public entities achieve their objectives efficiently.

ii) Objectives of the Government Regulatory and Financial Reporting Framework:

1. Ensure Financial Resources Are Used in Accordance with the Budget: The framework is designed to ensure that all financial resources are obtained and spent as per the national budget, maintaining transparency and accountability in financial management.
2. Monitor the Effectiveness of Public Spending: The framework helps to monitor whether public spending achieves the intended results, providing insights into the effectiveness of government programs and initiatives.

iii) Challenge Affecting Effective Financial Reporting:

• Timeliness of Reporting: Delays in financial reporting can make the information less relevant and useful for decision-making, thereby affecting the overall effectiveness of the financial reporting framework.