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Social accountability sourcebook - chapter 4: Participatory public expenditure management at the national level
2006
The World Bank
Participatory Public Expenditure Management (PPEM) is the process whereby citizens and civil society organizations (CSOs) influence or participate in the management of public expenditures.
PPEM has emerged over the past five years as an important means for involving citizens and civil society organizations in public expenditure management. PPEM is now increasingly being adopted in countries all over the world in an effort to ensure greater transparency, better targeting and tracking of resources, and increased overall responsiveness. This is likely to contribute not only to greater development effectiveness, but also to increased accountability for the use of public resources. Increased legitimacy and transparency of public spending has the potential to improve tax collection and stimulate private business.
PPEM strengthens the demand side of good governance and can be an important complement to accountability measures internal to the government by helping to strengthen existing accountability institutions (e.g., supreme audit institutions, ombudsman offices, anti-corruption entities, and ethics secretariats). Without sufficient understanding and support within civil society for the work of these institutions, their impact and capacity for action may be severely hampered. Investing in measures aimed at increasing the accountability of public expenditure management towards civil society can make good economic sense for governments.
Keywords: public expenditure
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