Exploring the Interplay Between Public Finance Management and Accountability: SLR

Abstract

This study examines the interrelationship between Public Finance Management (PFM) and accountability in public sector governance through a Systematic Literature Review (SLR) approach. PFM, encompassing budget formulation, execution, and oversight, serves not only as a technical mechanism for fiscal discipline and efficient resource allocation but also as a governance tool that shapes state–citizen relations. The findings reveal that robust PFM frameworks significantly enhance both vertical accountability enabling citizens and civil society to evaluate government performance and horizontal accountability through institutional oversight. Evidence indicates that integrating transparency mechanisms such as open budget portals, expenditure tracking, and participatory budgeting increases budget credibility and public trust. Moreover, resilient PFM systems with embedded accountability measures perform better during crises, maintaining fiscal transparency and effective emergency responses. Nonetheless, challenges persist, including capacity limitations in oversight institutions, restricted public access to fiscal information, and weak enforcement of accountability mechanisms.