2 years ago
Prosperous Country, Happy Nepalis
Being a finance student, I am always keen to know about financial terminologies. Here I’d like to explain financial management. Tellingly, it refers to the efficient and effective management of money in such a manner as to accomplish the objectives of the organization’s goals. In other words, it includes how to raise the capital and how to allocate capital. It not only deals for long-term capital budgeting but also how to allocate short-term resources like current assets. It also deals with the dividend policies for their shareholders.
By closely understanding such basic concepts of finance, one can embrace his/her knowledge in the organization, no matter the organization may be big or small ones. Of course, in today’s world, financial management is the most fascinating subject in terms of profitability statements, rates of good returns, budgets, project management, asset management, and most importantly, project analysis. In fact, financial management matters a lot because without it the organization's overall functions can’t operate as smoothly as the organization hopes to do. So, financial management is life-saving blood for the organization in order to run with a zero-sum burden.
However, today financial manager’s prime functions are to plan for, obtain, and use funds to maximize the organization’s value and capital in the long run. Apart from this, the financial concepts, techniques, and approaches can also be used by financial managers, irrespective of their primary duties.
Every now and then, we hear that there is something leakage/loophole in public financial management, too. Let us quickly understand the core meaning of public financial management. It means ensuring that the performance, transparency, and accountability in the use of public funds more trustworthy way rather than operating in a mismanaging. It is not surprising to say that most of the project’s funds are mismanaged due to an attitude of making corruption on it. This must be stopped. That’s the reason why many projects have failed instead of successfully finish on time.
In the context of Nepal, although the achievements in the public financial management reform process have been improved, there is still a long way to go. On top of that, public financial management is the necessary link between (policy vision) and actual (action plan) at a time when public funds are using – when, where and how much. Hence, this is the need of the hour: the policy vision of the country should be cleared. As a result, in areas like investments, entrepreneurship, SMEs, the changing dynamics of doing business, socioeconomic prosperity, are in a position to bring positive change that can revive the social and economic landscape of the country.
After all, vision needs to be translated into appropriate budgeting and allocations; performance mechanisms and supervision and control systems. Lastly, I’d like to conclude my writing by saying that ‘this will add value to the motto of Prosperous Country, Happy Nepalis as the government has adopted.’