Effectiveness of the Public Financial Management Assessment Tool or (PFMAT) in Strengthening the Financial Capability of Local Government unit in Talavera, Nueva Ecija

Abstract

In both theoretical and practical areas, the issue of public sector management and the use of public finances is highly critical. The management of public finances is vital if public services, like local government, are to operate smoothly and effectively. If public financial management is such a vital element in a country's growth, it is crucial to know, quantify and develop the factors leading to poor public financial management. This descriptive research interest is on the effectiveness of the public financial management assessment tool or PFMAT for local government units. The chosen subject of the study is the Municipality of Talavera, Nueva Ecija, and the focus is on the results of the PFMAT report of the municipality for the covered fiscal years 2014-2016 and 2016-2018. The study revealed that the PFMAT is a standard tool that states the weak areas of the public financial performance of LGU-Talavera, thus paving the way for improved services for the residents of the municipality. LGU-Talavera has gradually improved its public financial performance in 2014-2018. PFMAT is therefore an effective tool for evaluating public finances to strengthen the town's financial capability, thereby enhancing the overall performance of the LGU.