Each of the scenarios provided corresponds to one of the seven pillars of the PEFA framework.

(i) Pillar 1 – Budget reliability
The pillar of public financial management affected is budget reliability. It is a pillar that ensures that the government budget is realistic and is implemented as intended. This is measured by comparing actual revenues and expenditures (the immediate results of the PFM system) with the original approved budget. In the scenario, the inclusion of superfluous projects and programs in the annual budget, which were not intended to be achieved makes the budget unrealistic and therefore the projects and programs were not delivered to the people. This negatively affects the effectiveness of the public financial management system.

(ii) Pillar 2 – Transparency in public finance
It is about the provision of comprehensive, consistent, and accessible information to users. This is achieved through comprehensive budget classification, transparency of all government revenue and expenditure including intergovernmental transfers, published information on service delivery performance and ready access to fiscal and budget documentation. In this case, the annual budget is presentation to the entire parliament and live broadcast on radio and television for all Zamorians improves transparency in public finance. The entire budget publication in newspapers and finally gazetted when approved further enhances transparency, which generally improves the public financial management.

(iii) Pillar 2 – Transparency in public finance
Transparency in public finance is concerned with the provision of comprehensive, consistent, and accessible information to users. This is achieved through comprehensive budget classification, transparency of all government revenue and expenditure including intergovernmental transfers, published information on service delivery performance and ready access to fiscal and budget documentation. The restricted access to the financial reports of many covered entities, and failure to post the financial reports on their websites for public access. Thus, this practice reduces the openness of the public financial management.

(iv) Pillar 6 – Accounting and reporting
This pillar ensures that accurate and reliable records are maintained, and information is produced and disseminated at appropriate times to meet decision-making, management, and reporting needs. In the current case, the government has invested significant resource in implementing the International Public Sector Accounting Standards (IPSAS), which resulted in over 90% implementation of the standards across the public sector. This improves public financial management.

(v) Pillar 7 – External audit and scrutiny
Public finances are independently reviewed and there is external follow-up on the implementation of recommendations for improvement by the executive. In this case, The Audit Service has been denied resources to operate because it is perceived as overly critical of corruption in the public sector. This issue directly impacts external scrutiny and audit, as the denial of resources hinders the audit body’s ability to conduct independent reviews and hold public entities accountable. This negatively affects the independence of the State Auditor, hence impacting on public financial management adversely.

(vi) Pillar 3 – Management of asset and liability
Effective management of assets and liabilities ensures that public investments provide value for money, assets are recorded and managed, fiscal risks are identified, and debts and guarantees are prudently planned, approved, and monitored. In this scenario, Managers of State-Owned Enterprises (SOEs) were given high salaries and allowances despite making huge losses for the state. It deals with the management of state-owned enterprises and the associated fiscal risks to the government This means that equity investment of government has not been well managed and therefore affecting public financial management negatively.

(vii) Pillar 4 – Policy based fiscal strategy and budgeting
The fiscal strategy and the budget are prepared with due regard to government fiscal policies, strategic plans, and adequate macroeconomic and fiscal projections. In this case, resource allocation is mostly done based on intuition and personal preferences rather than a well-formulated policy-based fiscal strategy. The arbitrary allocation of resources undermines the credibility and reliability of the budget, which is intended to reflect a strategic allocation of resources aligned with national policies. Therefore, fiscal strategy and budgets may be misaligned with the policy direction of the government. This may adversely affect public financial management.

(viii) Pillar 5 – Predictability and control in budget execution
The budget is implemented within a system of effective standards, processes, and internal controls, ensuring that resources are obtained and used as intended. In this case, the adoption and implementation of the Zamora Integrated Financial Management Information System (ZIFMIS) have helped the government improve budget controls. Thus, the adoption of ZIFMIS improves budgetary controls, enhancing the predictability and management of public finances, which is crucial for expenditure controls and financial discipline.