Public Expenditure Management (PEM) is the process that allows governments to be fiscally responsible (spend only what they can afford), spend on the right things, and make the most of limited public resources. The Kenyan Constitution and legislation require that all county spending be tied to a planning framework that sets the priorities and key performance indicators and targets. Citizens are to have an active role throughout the whole process.
The PEM cycle can be simplified by thinking of it as a sequence of four parts:
- First, we make decisions on the use of public resources through planning and budgeting
- Services are delivered by implementing what is approved in the annual budget
- Then we monitor and report on service delivery and spending
- Finally, we evaluate and review our collective actions to improve our policies and spending