The Role of the Fiscal Discipline in Public Finance Management in Developing Countries

Public financial management plays key role in is very important for developing, transitional and poor countries for several reasons. First, these countries need large financial resources to finance the growth, physical infrastructure, social and other public services. Secondly, limited resources require public finance management system to be efficient, disciplined, transparent, independent and accountable. Finally, public finance system holds together the whole system of government agencies with their programs and objectives which are usually tied to the economic development strategy of the country; therefore its failure may lead to the failure of the whole system and thus spark social tensions and upheavals.