Public Finance

Developing best-practice financial management systems for the public sector.

Population growth, poverty increases and political instability strain government revenues and resources everywhere. At Maxwell Stamp, we deliver Public Financial Management (PFM) according to the highest professional standards. This enables better use of public resources, more effective public accountability and ultimately improved impacts on service delivery.

In Uganda, we work with the government to implement the new PFM Act that promotes the funding for and increased awareness of gender and equity responsive services. We bring benefits of PFM and extensive Ugandan expertise to support to three central ministries and six line ministries in budget preparation and implementation capacity. We provide grant management expertise for non-governmental bodies providing shelters for victims of gender based violence.

We specialize in PFM Monitoring and Evaluation. A classic example occurs in Bangladesh where our Strengthening Public Financial Management for Social Protection programme links PFM to improved delivery of social protection services.

The budget process is at the heart of our PFM strength, here are some Maxwell Stamp interventions:

  • PFM Forecasting and Diagnostics: In the Macro-Economic Reform Programme, Iraq, Maxwell Stamp developed much needed capacity in budget formulation, execution and evaluation. We set up a fiscal and macro-economic unit in the MoF and conducted training in modelling and design of macroeconomic policies. This has strengthened the government’s economic base for budget planning. Our debt management; budget preparation and execution activities address challenges of wasteful expenditure.
  • Revenue Management: In the Strengthening Tax Policy Project, Uganda, Maxwell Stamp developed and implemented national revenue forecasting model. By using advanced macro-econometric techniques, the model helped to improve tax policy formulation and implementation to maximise revenue generation within macroeconomic constraints. Maxwell Stamp inspired improvements in the quality and management of basic public revenue helped significantly to bolster trust in and compliance with the tax system.
  • Expenditure Management: In the Afghanistan, Transformation and Modernisation of the Budget Formulation Process project we increased budget formulation capacity through improving budget classification, capacity building and on-the-job training to build the foundations for a Medium Term Budget Programme, implemented later. This enabled the government financial planning to extend beyond the annual cycle to a three-year strategic – horizon.
  • Control, Oversight and Accountability: For the Municipal PFM Project, Jordan, Maxwell Stamp developed a methodology to strengthen the municipal financial management system in order to better respond to early warning signs of financial distress among municipalities, and thus provide remedial action.

The legacy of our PFM work is stable, inclusive government that focuses on public service, equity and balanced finances.

Diagram: The Budget Cycle and some Maxwell Stamp intervention points (in boxes)

Source: Maxwell Stamp Public Sector Management Practice