An Analysis of the Effects of Public Finance Management Reforms on the Management of Public Funds in Uganda: A Case of the Ministry of Finance, Planning & Economic Development

Abstract

This study analysed the effects of Public Financial Management (PFM) reforms on the management of public funds in Uganda, with a specific focus on the Ministry of Finance, Planning, and Economic Development (MFPED). It analysed the implementation of three key PFM reforms namely; the Integrated Financial Management System (IFMS), Program-based Budgeting System (PBS), and the Treasury Single Account (TSA). The focus was on establishing their effects on public finance management. Adopting a mixed-methods approach, the study integrated quantitative data from surveys (using self-administered questionnaires) with qualitative insights from interviews with Key informants in MFPED, using a sample size of 80 respondents and a response rate of 91.3%. Quantitative results revealed a significant positive effect between TSA and public finance management, with a beta coefficient of 0.692 for the IFMS, 0.532 for TSA, and 0.396 for PBS. All three reforms contributed to improved management of public funds, with the IFMS being the strongest predictor of the effects, followed by the TSA and lastly the PBS. Qualitative findings underscored the challenges faced in implementing these reforms, such as resistance to change, and technical skill gaps. Despite these hurdles, the reforms were viewed as instrumental in promoting fiscal discipline, improving accountability, and reducing financial leakages. The study concludes that while PFM reforms have made significant progress, operational and institutional challenges remain. Recommendations include improving system integration, expanding capacity-building programs for public officials, and reinforcing political support for sustained reform efforts. This research contributes to the discourse on public finance management in Uganda and provides actionable insights for policymakers, practitioners, and researchers. Keywords: Public Financial Management Reforms, Management of public funds, Uganda.