PEFA 2016 Framework

PEFA 2016 is the most significant upgrade to the PEFA framework since its inception in 2001. PEFA 2016 has been developed to reflect the changing landscape of PFM reforms and the evolution of good practices.

PEFA identifies seven pillars of performance in an open and orderly PFM system that are essential to achieving these objectives. The seven pillars thereby define the key elements of a PFM system. They also reflect what is desirable and feasible to measure. The pillars are as follows:

Within the seven broad areas marked by these pillars, PEFA defines 31 specific indicators disaggregated into 94 dimensions that focus on key measureable aspects of the PFM system.

PEFA uses the results of the individual indicator calculations, which are based on available evidence, to provide an integrated assessment of the PFM system against the seven pillars of PFM performance. It then assesses the likely impact of PFM performance levels on the three desired budgetary outcomes; aggregate fiscal discipline, strategic allocation of resources, and efficient service delivery.