The Outcomes of Using New Public Financial Management Approach

Document Type : Research Paper

Authors

1 MSc., Department of Accounting, Faculty of Social Sciences, Imam Khomeini International University, Qazvin, Iran

2 Associate Prof., Department of Accounting, Faculty of Social Sciences, Imam Khomeini University, Qazvin, Iran

Abstract

Objective: The new public financial management consists of reforms in systems and procedures, basics of accounting, financial reporting, budgeting, auditing, internal controls, and external controls. This novel system was introduced to generate a more efficient and effective use of financial resources and for promoting transparency and accountability. The main objective of this research is to investigate the outcomes of applying the new public financial management and the current situation of its components in Iran’s public sector.
Methods: This research was a survey-based study and data was gathered through a researcher-made questionnaire. The questionnaire was divided into six components that were compiled into 40 items and it followed the five-point Likert scale. The statistical sample consisted of 192 experts in Tax administration offices, Supreme auditing courts and public sector auditors which were selected through a judgmental sampling. And, the data was analyzed using statistical applications which performed Friedman and paired sign tests.
Results: The results show that utilizing the new public financial management approach can promote and improve transparency, accountability and supervisions. The novel approach can also be used to diminish many of the challenges which we are currently facing.
Conclusion: If the new public financial management approach is compatible with the environmental characteristics and infrastructures it could generate reliability in information systems, more realistic financial statements, ease decision making in investments opportunities, increase accountability by presenting performance information, and fulfill the government’s obligations on reports and budgeting. The novel approach can also lead to improvements in the management of resource allocation, accurate public service costs, and time management. If such a reform is implemented without considering the nature of public sectors, it can be followed adverse consequences such as Class stratification, lack of creativity in the public sector, financial and operational corruption, and inconsistency in performance criteria.
 

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References

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Journal of Public Administration
Volume 11, Issue 2
2019
Pages 231-250

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