Management of public finances is indeed a central and crucial function of government. To a large degree the achievement of government objectives is a function of sound management of its financial resources. The organization of the Ministry of Finance (MOF) with clear mandates, core functions and the appropriate competence level is therefore of paramount importance for good public financial management (PFM). Typically, the state MOF is organized around the achievement of the following objectives:
- Aggregate fiscal discipline - i.e. ensuring that expenditure matches revenue.
- Allocation of resources to strategic priorities i.e. giving due consideration to government strategic priorities in the budget or expenditure plan.
- Service delivery - i.e. ensuring effective and efficient use of resources in the delivery of priorities.