Effective Public Financial Management Enhances Policy Implementation and Accountability

Abstract

Public financial management plays a crucial role in building public trust and strengthening the effectiveness of fiscal policy through the principles of transparency, accountability, and efficient use of public resources. The implementation of sound governance systems establishes oversight mechanisms that prevent corruption, enhance the integrity of public institutions, and support long-term economic stability. This study analyzes key concepts and practices of public financial management based on literature published over the last five years, focusing on budget transparency, public participation, and financial oversight. The findings suggest that robust financial governance has a positive impact on the effectiveness of public policy and the quality of services provided to citizens. Furthermore, collaboration among government agencies, auditors, and civil society has been shown to reinforce fiscal accountability while reducing the risk of misappropriating public funds. The study also highlights the importance of policy reform and the adoption of digital technologies as strategic measures to create a transparent, adaptive, and sustainable public financial system. Thus, robust public financial management serves as a foundational pillar in supporting responsive and integrity-driven national development.