Niue’s Public Financial Management Performance Report Highlights Strengths, Weaknesses

Introduction

Wellington, NZ - A comprehensive report on Niue’s public financial management (PFM) performance has been released, providing a baseline for monitoring and evaluating reforms in the small Pacific island nation.

Report Overview

The report, conducted by the International Monetary Fund/Pacific Financial and Technical Assistance Centre (PFTAC), assessed the PFM systems of both non-trading and trading departments of government, as well as the government’s oversight of fiscal risk with respect to its three state-owned enterprises.

Economic Challenges

Niue’s economy faces typical Pacific island challenges such as geographic isolation, limited resources, and a small population. The country’s GDP is approximately NZ$25.5 million, with an estimated annual growth rate of -0.032%.

PFM System Strengths and Weaknesses

The report highlights several strengths in Niue’s PFM system, including:

• A well-established budget process
• A robust internal audit function

However, it also identifies areas for improvement, such as:

• Inadequate cash management
• Weak financial reporting

Recommendations

To address these weaknesses, we recommend that the Government of Niue develops a comprehensive PFM Road Map, which outlines key reforms and timelines for implementation.

Some key recommendations outlined in the report include:

• Strengthening Cash Management: Improved budget monitoring and control
• Enhancing Financial Reporting: Implementing a new accounting system and improving the accuracy of financial data
• Improving Internal Audit Functions: Ensuring more effective risk management and compliance with regulations
• Developing a Comprehensive PFM Road Map: Guiding reforms and implementation

Conclusion

The report is expected to inform policy decisions and guide reforms in Niue’s public financial management system, ultimately contributing to improved economic stability and development outcomes for the country.