ABSTRACT
Public financial management seeks to create and preserve value in society by helping public decision-makers and managers. Financial administration choices include balancing the private and public use and the alternate use and timing of use of economic resources, and the manner in which the revenue system allocates the cost of public operations among sectors of the private economy. A number of governments have formed insurance pools, essentially establishing combined self-insurance programs as a risk-sharing alternative to private insurance. The risk-management program seeks to protect the citizenry and public resources against loss in a fashion that combines loss reduction with sufficient insurance to cover when loss occurs. In practice, public financial management involves a mix and merger of skills from economics, finance, and accounting to provide information and options to public decision-makers and managers, giving service to both executive and legislative roles and responsibilities. Administering revenue systems to obtain funds for government operations is also a financial management task.
