Sustainable Development Goals and Public Financial Governance Report

This report delves into the intricate relationship between Sustainable Development Goals (SDGs) and public financial governance, particularly within the context of India. The report examines key aspects of the Busan Partnership on aid effectiveness, emphasizing shared principles for achieving desired objectives, such as focusing on results and improving development cooperation. It identifies specific SDGs related to the improvement of public financial governance and systems, highlighting the importance of effective revenue collection and expenditure management. The analysis explores how development partners can identify system weaknesses using tools like results-based financing and public finance management, and it applies these tools to identify weaknesses in India, such as financial crises and resource gaps. The report also discusses the benefits and drawbacks of adopting IPSAS in India and outlines how development partners can assist in implementing proposed reforms, including promoting transparency, supporting debt sustainability, and enhancing international cooperation. Overall, the report offers a comprehensive overview of the challenges and opportunities in aligning public financial governance with the achievement of sustainable development goals in India.

Running head: SUSTAINABLE DEVELOPMENT GOALS
SUSTAINABLE DEVELOPMENT GOALS
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................3
Answer 3..........................................................................................................................................3
Answer 4..........................................................................................................................................4
Answer 5..........................................................................................................................................5
Answer 6..........................................................................................................................................6
References........................................................................................................................................8

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Answer 1
Key aspects of the Busan Partnership on aid effectiveness
(2011) that relate to improved government financial governance
 Shared principles to attain desired objectives- As, Busan partnership accepts the diversity
helping in promoting their partnership they share some common principles which are as
follows-
a) Having a hold on development concern by developing countries- There can be succeed of
partnerships for development if they are embraced by developing countries along with the
implementation of tools and techniques according to the needs and situation of country-
specific (McKee at al. 2020).
b) Focus on results. Great attempts must have a life-long influence on sustainable
development showing reduction in inequality and eliminating poverty, in a range of with
policies and procedures set out by developing countries themselves.
 Improvement in the effectiveness and quality of development co-operation
a) There are some progresses implemented in promoting the agenda of aid effectiveness,
along with some big challenges. However, many principles have been introduced to
maintain the transparency, supreme quality and effective development co-operation.
 Possession, results and accountability
a) Proper co-operation can tend to increase the focus on results of development. In
order to ensure this, it is important for the developing countries to build up basic
rules, regulations, institutions and policies with supportive methods and criteria
related to focusing in order to control rather than to reduce risk and difficulties.

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Answer 2
Identification of SDGs to which the improvement of Public Financial
Governance and systems relates.
Public Financial Governance and systems relates to the effective public financial
management. Moreover, public financial management is the ability of governments which
ensures how effectively the revenue is collected and how accurately those revenues are spent. It
is important for those countries which are in need of expanding their economic growth along
with the increase in the resources that are available so that the national goals can be achieved.
However, it is included in relation to UN Sustainable Development goals
(Sustainabledevelopment.un.org, 2020). The Sustainable Development goals are covers all areas
related to the sectors of society such as health, education but lastly the success of Sustainable
Development goals comes down to an effective Public Financial Governance
Government must advance their planning on expenditures through precise connection
between the objectives of the nation and its spending decision, The budget system can get better
by applying performance based budgeting (PBB) as it make the budget more transparent and
operate behavioral changes in institutional.
Improvement for growth in business can be achieved by introducing public financial
management reforms. However, the government may be unwilling to introduce reforms that can
assure the growth of business but at the probable cost of revenue, such as declining the irrelevant
regulatory fees and efficient tax refund process.
Answer 3
Development partners can identify system weaknesses (Diagnostics)

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In order to identify the weaknesses of the system, the Government and development
partners can come across the world-wide results-based financing (RBF) methods, such as
performance-based financing (PBF) in order to provide strength to the supply of services. These
sample methods have proved to make deliveries in the respective areas and have significantly
increased. In addition, there has been a great expansion in the fields of education, service sectors
and health. Results-based financing (RBF) methods can improve the efficiency of the whole
systems, too. Other than this the Public Finance Management is another approach of
identification of the system weaknesses. The approach focuses on improving the functionality
and hence helps in overcoming problems that are hurdles in the process of overall development.
It also aims at providing an outlook to ensure that all resources are effectively allocated subject
to accountability arrangements and democratic processes. In addition to this, it ensures increase
in harmonization though enabling scant capacity to focus on the domestic system rather than
meeting shattered accountability demands from the development partners.
Answer 4
Developing country and current area of weakness using tools:
India is an evolving and developing country located in Southern Asia. By using tools like
the Result-based financing approach, the area of weaknesses can be identified in India. In Result-
based financing, the identification of weak areas can be found with the help of performance-
based financing. The main area of weakness is the financial crisis, which results in a natutal
capital gap. India’s per-capita is lesser than several countries and is lower than the world
average, which is 2.2 global hectares (Data.worldbank.org 2020). It also needs to focus on
increasing food, shelter, sanitation, and medicine. The major factors are – unemployment,
poverty, and climate change. The population is also increasing, and that will lead to an ecological

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discrepancy even though its per capita of resource-consumption remains the same. There is a
need for higher equity.
Answer 5
Benefits and drawbacks for the adoption of IPSAS in India
The drawbacks for adopting IPSAS in India are discussed as below:
(i) There are different states, and there may not be readiness from every state for
adopting IPSAS within the Indian Government and across various public sector
entities.
(ii) There are particular fundamental accounting challenges like lack of information on
‘assets and liabilities’ within various public sector entities in India currently.
(iii) As a part of an intense project management approach, there will be a need to conduct
pilot studies; accounting policies and standards and a list of accounts will need to be
produced; decisions have to be taken to support accrual accounting for IT
requirements; there might be a necessity for organizational restructuring; sites for
pilot implementation will have to be identified and prioritized, and a program must be
evaluated for systematic implementation for the entire government financial
statements.( Ifac.org 2020)
The benefits of adopting IPSAS in India as follows:
(i) There will be more transparency and accountability in the financial statements which
exhibit the financial performance of entities.
(ii) It will assist in creating a more stable government in India and a stable investment
climate.

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(iii) It will allow standardization for effective audits and will aid in mitigating the risk of
material misstatements.
Answer 6
Development partners can assist in implementing proposed reforms:
The partner countries can help India for implementation of reforms in the following way:
(i) The partner countries must commit to working together for establishing a jointly
agreed framework that will provide for a careful examination of performance,
transparency, and accountability.
(ii) They must conduct diagnostic reviews that offer trustworthy evaluations of the
country’s system and procedures, and it will help in undertaking reforms that will be
necessary for ensuring national systems, institutions, and procedures. It will assist in
undertaking reforms like public management reform, which will be necessary for
launching fuel sustainable development processes.
(iii) The partner countries can assist India in attaining sustainability in long-term debt by
co-ordinating policies that are expected for adopting debt financing, restructuring of
debt, and for debt relief.
(iv) They can provide support by enhancing international and regional cooperation and
access to the latest technology, science.
(v) The support can be provided by encouraging a universal, non-discrimantory, rules-
based, open, and equitable multi-lateral trading system under the WTO.
(vi) By supporting India in significantly increasing their export.

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(vii) They can provide assistance in capital-building, including increasing the availability
of high-quality, timely, and reliable data. The support can be provided by making
available reliable and accurate high intensive data. (UN India 2020)

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References
Data.worldbank.org, 2020. GDP Per Capita (Current US$) - India | Data. [online]
Data.worldbank.org. Available at: <https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?
locations=IN> [Accessed 15 March 2020].
Ifac.org, 2020. [online] Ifac.org. Available at:
<https://www.ifac.org/system/files/publications/exposure-drafts/comments/Comments-
PDF_1.pdf> [Accessed 15 March 2020].
McKee, C., Blampied, C., Mitchell, I. and Rogerson, A., 2020. Revisiting Aid Effectiveness: A
New Framework and Set of Measures for Assessing Aid" Quality" (No. 524).
Sustainabledevelopment.un.org, 2020. Sdgs .:. Sustainable Development Knowledge Platform.
[online] Sustainabledevelopment.un.org. Available at:
<https://sustainabledevelopment.un.org/sdgs> [Accessed 13 March 2020].
Encyclopedia Britannica, 2020. Commonwealth | History, Members, & Facts. [online]
Encyclopedia Britannica. Available at: <https://www.britannica.com/topic/Commonwealth-
association-of-states> [Accessed 13 March 2020].
UN India, 2020. SDG 17: Partnerships For The Goals. [online] UN India. Available at:
<https://in.one.un.org/page/sustainable-development-goals/sdg-17/> [Accessed 15 March 2020].