Innovations in Public Expenditure Management

Country Cases from the Commonwealth

image of Innovations in Public Expenditure Management
A key feature of a professional and credible public service is transparent and accountable financial management. In a rapidly changing and often challenging public sector environment, public servants are seeking new and creative approaches to enhance the efficiency and effectiveness of their work.

This collection of case studies, broadly drawn from Commonwealth developed and developing countries, examines innovations in public financial management and provides practical information on best practices and recommendations for new initiatives. It will be valuable for public sector leaders and policy-makers as they work to improve their public financial management systems.



The Constituency Development Fund Experience in Kenya

The Government of Kenya has been praised by many in Africa and elsewhere for introducing the Constituency Development Fund (CDF), an innovative system of transferring part of central government revenues to the grassroots. Geek (2006), in praising this system, says that it has contributed a lot in promoting growth and development of individual enterprises through provision of loans for businesses. He also says that the system has helped to raise the level of education in Kenya because it supports the building of schools, provision of equipment and bursaries for poor children. Bagaka (2008) also says that the CDF system of fiscal decentralisation promotes efficiency and equity of fund allocation. More praise for the benefits of CDF came from Kimenyi (2005) who says that the CDF is ‘one of the ingenious innovations of the NARC government of Kenya’.


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