Finally, it discusses fiscal transparency mechanisms which complement the fiscal policy rules. Fiscal policy rules and fiscal transparency sets the foundations for fiscal responsibility. First, it discusses institutions that facilitate strategic prioritization of expenditures across policies at the cabinet level and enable the cabinet to determine clear strategic result areas . Lastly, it discusses the role of evaluation and feed-back to planning and policy making. As it is discussed in the Handbook, the PEM systems impact, via predictability of funding and financial regulations, is but one of a number of systemic influences.
Performance management requires a much wider management focus than just expenditure.
Having said that, the site discusses what the PEM system can do in regulating public sector wide performance management . The sub-theme discusses the role of contestability and contracts as regulatory vehicles and proposes application of corporate governance principles on public sector agencies. It ends with the discussion of the changing role of the Budget Office in response to these three objectives. The fifth sub-theme focuses on Financial Management . It starts with the discussion on the role and functions of Treasury .