Good Financial Governance as the Foundation for Accountable and Efficient Public Administration

Abstract

Good Financial Governance has emerged as a crucial paradigm for enhancing the effectiveness of public financial management, particularly within the framework of fiscal decentralization. The primary of objective of implementing Good Financial Governance is to foster transparency, accountability, and efficiency in the utilization of public resources, thereby supporting improved public service performance. This study aims to examine the interrelationship among Good Financial Governance, transparency, accountability, and public service performance through a descriptive qualitative literature-based on approach. The findings indicate that fiscal transparency exerts a positive influence on the efficiency of government spending. Effective implementation of Good Financial Governance requires maintaining a balance between the principle of “money follows function” and the administrative capacity of public officials. Conceptually, the enhancement of accountability and transparency contributes to the development of a more responsive public service performance that prioritizes societal welfare. Therefore, strengthening Good Financial Governance principles constitutes a fundamental prerequisite for establishing a clean, transparent, and effective government system