ACCN302
GROUP 4 ASSIGNMENT
SURNAME NAME Registration Number
Saungweme Clyde R232802C
Madziire Sharon R232752B
Washa Lorraine
R232747U
Madenyika Virginia R232761R
Nyamanhindi Peter K R232734F
Mbwadzi Tariro R232731W
Mazoza Tanatswa P
R232689A
Gurure Sharon
R232768D
Sibanda Thelma A
R232789C
Nickson R232665X
Mafoti
Munashe G R232696C
Chisi
Kamoyo Tanaka
R232780T
Makururu Lesley
R2111608
Mahlangu Brandon B R233127C
Murehwa Pretty A R232700W
Windizi Theresa R236856C
Musekiwa Roseline R232714N
Mugorogodi Blessing R232636N
Mutyavayiri Gracious R236344A
DISCUSS THE PUBLIC FINANCIAL PLANNING
PROCESS.
The public financial planning process is an approach used by governments to
allocate, manage and oversee financial resources in line with policy priorities and
economic stability.
According to IMF (2019) financial planning involves a structured process of revenue
estimation, expenditure planning, budget execution and performance evaluation.
Chambers et al. (2018) stated that this process ensures transparency,
accountability and efficiency in the use of public funds.
Given the complexities of modern economies and the increasing demands on
public resources financial planning is essential for sustainable development, poverty
reduction, and macroeconomic stability.
Financial process involves process such as budget preparation, budget approval,
budget execution, financial reporting and audit and evaluation.
Setting Fiscal Objectives and Policy
Alignment
The process begins with defining clear fiscal objectives aligned with national
priorities, such as economic growth, infrastructure development, or social
welfare (UNDP, 2018).
Governments must consider long-term strategic plans (e.g., Sustainable
Development Goals or national development agendas) while balancing short-
term political and economic constraints (IMF, 2021).
Policy makers must ensure that financial plans support equitable resource
distribution and inclusive growth (World Bank, 2022).
Governments and public entities establish their financial goals and policy
objectives, which may include economic growth, social welfare, infrastructure
development, public service delivery for instance the Zimbabwean government
has outlined goals in documents like the National Development Strategy 1
(NDS1), focusing on economic recovery and infrastructure development.
Setting Clear Goals and Objectives
Public financial planning starts with defining clear, measurable, and
achievable goals that align with the government's overall objectives.
These goals should outline the desired outcomes and the specific targets to
be achieved through the financial plan.
A thorough understanding of the current financial situations such as
revenue, expenditure, assets, liabilities, and other relevant financial
information is crucial.
Data should also include information on the economy, social conditions, and
other factors that may affect the financial plan.
Budget Preparation
Departments and agencies submit budget requests for their planned
activities, often prioritising projects based on the established goals.
According to World Bank (2020) governments must allocate funds efficiently
between operational costs such as salaries, administration and capital
investments (infrastructure, healthcare, education, making use of priority-
based budgeting, directing funds to high-impact sectors and also
performance-based budgeting, linking expenditures to measurable outcomes
(Abbasov, 2025).
A well-structured budget ensures that public funds are used effectively to
meet policy goals. The preparation of the national budget is a critical phase
in public financial planning for instance in Zimbabwe, the Ministry of Finance
is responsible for formulating the budget based on projected revenues from
various sources, including taxes and natural resources.
The Zimbabwean tax structure itself is deeply problematic relying heavily
on regressive instruments like the 2% Intermediary Money Transfer Tax
which constitutes a significant portion of collections but disproportionately
burdens low-income citizens and small businesses engaged in daily
transactions.
The 2022 budget was designed to support economic recovery amidst
ongoing challenges such as Covid 19.
However, this process often involves significant review and revision as
economic conditions can change rapidly.
Chigaga (2023) concluded that stakeholder input during budget discussions
is vital for improving government outcomes as it leads to adjustments that
reflect real-time needs.
Budget Approval
The Ministry of finance prepares the draft budget and submitted to the
committee for scrutiny and debate.
After the finance minister prepares the draft, the parliamentary committee
reviews the draft budget and these committees may hold hearings, invite
expert testimonies and consult with civil society (Craft, J. and Halligan, J.,
2020).
Their role is to scrutinise the assumptions, priorities and allocations
proposed by the executives.
The legislature then debates the budget and the authority to propose
amendments. According to (Krafchik, W. and Wehner, J., 1998), the
parliament may then approve, amend or reject the budget.
Once approved, the budget must be executed efficiently through treasury
management monitoring cash flows to avoid liquidity crises.
Implementation
Following approval, the budget moves into the implementation phase, where
funds are disbursed, and government agencies execute their programs.
Monitoring and control mechanisms are essential at this stage to track
expenditures, ensure legal compliance, and prevent misappropriation,
(Pattanayak, S., 2016).
Budget execution is crippled by chronic cash flow crises forcing the Treasury
to ration disbursements erratically, leaving ministries scrambling for
operational survival rather than implementing planned programs.
In Zimbabwe this phase faces significant challenges due to cash shortages
and economic constraints that hinder effective execution.
The government must prioritize essential services, such as education and
healthcare, to ensure that the most pressing needs are met.
Monitoring mechanisms, including audits by the Auditor-General, are in
place to track the utilization of funds, although discrepancies have been
reported in various sectors.
Evaluation and Adjustment
Subsequently, governments engage in financial reporting and evaluation.
Internal and external audits verify the integrity of financial operations, while
performance assessments determine if policy objectives are being met.
Transparency is maintained through the publication of financial statements and
performance reports which inform stakeholders and the public (World Bank,
2017).
Evaluation is a critical component of public financial planning, allowing the
government to assess the effectiveness of its financial strategies.
In Zimbabwe, ongoing evaluations of budgetary impacts on economic recovery
and public welfare are necessary, especially in sectors like agriculture, which
are vital for food security.
Adjustments to the budget may be required in response to economic downturns
or natural disasters, highlighting the need for flexibility in financial planning.
Audit and Accountability
Finally, according to (Maclean, S., 2014), the audit process plays a crucial
role in ensuring transparency and accountability in public financial
management.
The Auditor-General conducts regular audits to verify that public funds are
used appropriately.
Past audits have revealed significant issues in various ministries, prompting
calls for improved financial management practices.
While efforts to enhance transparency are underway, challenges remain,
particularly in providing public access to financial information, which is
essential for building trust in government operations.
Challenges and Recommendations
Despite its importance, public financial planning faces several challenges
such as market volatility. Hyper-inflation disrupts budget credibility.
The process dependence on commodity prices or unstable tax bases and
corruption leakage reduces available resources.
Furthermore, unpredictable crises such wars, pandemics, or climate
disasters disrupting budgets.
In Zimbabwe EL Nino induced drought reduced agricultural output and
hydropower generation triggering a national disaster declaration.
This slashed budgeted tax revenue while increasing emergency spending
needs.
According to, (Doig, A., 1995) effective reforms require institutional capacity
building, technological integration, and robust anti-corruption measures.
Implementing a Treasury Single Account (TSA) and performance-based budgeting
could enhance fiscal discipline, while digital platforms for citizen engagement
would ensure more inclusive planning.
Collaboration with international financial institutions for debt restructuring and
adopting open budget initiatives can further restore confidence in Zimbabwe’s
public financial management.
By addressing these challenges holistically, the country can achieve more stable
and transparent fiscal governance.
In conclusion public financial planning is a dynamic and multi-stage process that
ensures responsible governance, economic stability and sustainable development.
By integrating revenue forecasting, strategic expenditure allocation, rigorous
oversight and adaptive risk management, governments can optimize resource use
and meet societal needs.
REFERENCES
Abbasov, R. (2025) The Effectiveness of Performance-Based Budgeting in the Public Sector: An
Empirical Analysis and Policy Implications. iBusiness, 17, 56-76. doi: 10.4236/ib.2025.171003.
Chambers, J., Brixova, Z., & Batini, N. (2018). Public Financial Management. International Monetary
Fund. [Link]
Chigaga, T. (2023) 'Stakeholder participation in government budgeting process and tax compliance in
Zimbabwe', Journal of Accounting and Taxation, 15(3), pp. 87–101. doi: 10.5897/JAT2023.0576.
Craft, J. and Halligan, J., 2020. Advising governments in the Westminster tradition: Policy advisory
systems in Australia, Britain, Canada and New Zealand. Cambridge University Press.
Doig, A., 1995. Good government and sustainable anti‐corruption strategies: A role for independent
anti‐corruption agencies?. Public administration and development, 15(2), pp.151-165.
International Monetary Fund (IMF) (2019) Public Financial Management Reform. Washington, DC: IMF.
International Monetary Fund (IMF) (2021) Debt Sustainability Analysis in Low-Income Countries.
Washington, DC: IMF.
Krafchik, W. and Wehner, J., 1998. The role of Parliament in the budget process. South African Journal of
Economics, 66(4), pp.512-541.
Maclean, S., 2014. Examining auditing as an essential element of financial management and good
governance in local government. Africa’s Public Service Delivery & Performance Review, 2(2), pp.82-101.
Pattanayak, S., 2016. Expenditure control: key features, stages, and actors. International Monetary Fund.
United Nations Development Programme (UNDP) (2018) Public Financial Management for Sustainable
Development. New York: UNDP.
World Bank. (2017). Public Financial Management Handbook. World Bank Publications.
[Link]
