Harnessing Digital Transformation for Efficient Public Financial Management and Governance

Abstract

The digital revolution is transforming public financial management (PFM) by introducing technologies such as artificial intelligence (AI), blockchain, and big data analytics to improve efficiency, transparency, and accountability in government operations. This article explores the role of digitalization in modernizing PFM systems globally, focusing on how governments have implemented digital tools to optimize processes, reduce fraud, and enhance decision-making. The article also highlights challenges, such as infrastructure deficits, cybersecurity risks, institutional resistance, and the digital divide, providing recommendations for successfully leveraging digital tools in public finance.