History of Public Financial Management Reforms

Abstract Public financial management (PFM), both globally and in India, has not always been designed with public service delivery as its primary focus. However, PFM reforms over the past few decades have significantly influenced how people experience public services. This chapter examines the trajectory of PFM reforms thus far. Lessons from global reforms emphasize the importance of context, as the success of a reform in one country does not guarantee its effectiveness elsewhere. India has integrated some of these lessons, implementing numerous reforms, particularly through digitalization, to enhance efficiency, but these have been hindered by two constraints: they are often designed by accountants without a broader governance perspective, and they often fail to address fundamental issues in data capture, recording, and utilization. This chapter explores these challenges, beginning with insights from global reforms, to highlight the need for a more integrated approach to linking public finance to service delivery.