Prevention and Management of Government Arrears

Technical Notes and Manuals, July 9, 2014

Source details

Canonical URL

Prevention and Management of Government Arrears

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Authors: Suzanne Flynn, Mario Pessoa
• Published: July 9, 2014
• Series: Technical Notes and Manuals
• DOI: https://doi.org/10.5089/9781498313650.005

Summary

• The accumulation of government expenditure arrears is identified as one of the most common problems in public financial management.
• The technical note:
  • Defines expenditure arrears and the different types of arrears that arise.
  • Highlights the economic impact of chronic expenditure arrears accumulation.
  • Discusses the underlying causes and mechanisms for preventing and controlling the further accumulation of arrears.
  • Concludes with strategies for managing and clearing arrears.

Economic impact and key findings

• Chronic accumulation of expenditure arrears has adverse economic impacts (specific impacts are highlighted in the note).
• The note treats expenditure arrears as a recurring public financial management issue requiring preventative and remedial approaches.

Underlying causes and prevention mechanisms

• The note discusses underlying causes of arrears accumulation (types and mechanisms are defined).
• It addresses mechanisms for preventing and controlling further accumulation of arrears, including approaches to strengthen commitment control and payment policy.

Management and clearance strategies

• The note concludes with strategies for managing and clearing arrears, including arrears clearance strategy considerations and measures related to liquidity management and government payment policy.

Subject coverage and keywords

• Subject areas: Arrears, Budget planning and preparation, Expenditure, Expenditure control, External debt, Fiscal accounting and reporting, Public financial management (PFM).
• Keywords include: Africa, annual budget, Arrears, arrears clearance strategy, Budget planning and preparation, clearance strategy, commitment control, commitment controls, Europe, expenditure arrears, Expenditure control, Fiscal accounting and reporting, government Arrears, government expenditure, government expenditure Arrears, government liability, government liquidity shortage, government payment policy, government supplier, incumbent government, liquidity shortage, payment arrears, payment policy, public finance, public financial management, Sub-Saharan Africa, TNM, treasury, West Africa.

Content in this bundle

• _tnm1403
  • _tnm1403 (Markdown version)
  • _tnm1403 (PDF)
• _tnm1403s
  • _tnm1403s (Markdown version)
  • _tnm1403s (PDF)