What a Minister of Finance should expect from the public finance system

Government Finance Ministers should be demanding modern digital public finance systems

The responsibilities of today’s Minister of Finance extend far beyond simply balancing budgets or approving expenditure. In a rapidly evolving world—marked by global uncertainty, rising public expectations, and complex social challenges require modern finance leaders to make faster, smarter decisions. Yet, many are still constrained by legacy (technology) public finance systems that simply cannot keep pace.

These outdated digital platforms often produce fragmented, delayed or opaque financial data, making it difficult to respond with agility to risks or opportunities.

However, the opportunity for transformation is clear.

Through the adoption of streamlined, integrated, and centralised digital systems, a Minister should now expect immediate access to high-quality data across government. This would not only improve the reliability of financial management, but also enable the rapid redirection of resources to priority areas, better risk oversight, and the ability to detect inefficiencies or failing initiatives earlier.

Ultimately, modern public finance systems should empower ministers with clear, real-time insights and decision-making tools—freeing them from constant negotiation and guesswork.

A new standard for public finance: clarity, control, and confidence

At a foundational level, a public finance system must accurately record and track all financial transactions—whether they involve cashflows, assets, liabilities, or obligations. But in the digital age, accuracy alone is no longer sufficient. Ministers should expect these systems to generate timely and consistent financial reports at both agency and whole-of-government levels, removing dependence on manually compiled spreadsheets or slow year-end reconciliations.

A modern system should deliver data that is both granular and dynamic. Rather than relying on outdated monthly or quarterly updates, ministers should have the ability to generate ‘at a glance’ reports whenever needed—whether responding to a sudden crisis, addressing emerging risks, or planning future spending. This level of responsiveness requires not only the right software, but also a finance culture that values transparency and alignment across departments.

Additionally, such a system must support full regulatory compliance with accounting and financial reporting standards, while being flexible enough to respond to evolving legal and policy frameworks. This balance of control and adaptability is essential for managing risk and ensuring accountability at all levels of government.

Smarter decisions through better data and planning tools

One of the greatest strengths of a digitally enabled finance system is its ability to support informed decision-making. The system should facilitate long-term planning and resource allocation, allowing ministers and departmental leaders to test different policy scenarios, assess trade-offs, and model outcomes. It should enable multi-year budgeting that links resource inputs with programme outcomes, while offering visibility into how spending aligns with national priorities.

To manage financial risks effectively—whether operational, economic or political—the system must offer early-warning indicators and real-time risk dashboards. With these tools, ministers can monitor the performance of large-scale investments and infrastructure projects, intervene early in under-performing programmes, and adjust course before damage is done.

Performance measurement should also be built into the system. Government spending must be evaluated not only by how much is spent, but by the value and outcomes achieved. By making it easier to track performance against key indicators, finance systems can support more rigorous value-for-money assessments, ultimately leading to more effective service delivery.

From fragmented silos to a unified finance ecosystem

A critical challenge facing many governments is the fragmented and siloed nature of their public finance management systems. These are often built on ageing agency specific IT platforms that do not speak to one another, leading to inconsistent data and duplicative reporting. Ministers should expect—and demand—a whole-of-government approach that breaks down these barriers.

An integrated finance ecosystem would enable seamless information-sharing across departments, agencies, and even between central and local governments. This requires common data standards, interoperable platforms, and governance structures that promote cross-agency coordination. The Minister of Finance should not have to negotiate endlessly with line agencies or navigate inconsistent reporting formats. Instead, a centralised dashboard should provide a unified view of the government's financial health—at both micro and macro levels.

Such integration would allow ministers to pinpoint exactly where money is being spent, where savings can be found, and where potential risks are emerging. It also would enable more agile resource allocation. In the face of a natural disaster or an economic downturn, resources could be rapidly redirected to meet changing demands without relying on complex appropriation cycles or inter-agency haggling.

Rethinking the delivery model: digital by design

To achieve this vision, governments must reform how finance systems are funded and delivered. Too often, large-scale digital infrastructure projects are treated like physical infrastructure—requiring exhaustive business cases, upfront capital expenditure, and lengthy procurement cycles. By the time a new finance system is implemented, it may already be obsolete.

Modern systems require a new approach. Instead of large, one-off deployments, public finance reform should be iterative, user-centred, and continuously evolving. Ministers should support funding models that prioritise long-term investment in digital capabilities—including data science, user research, and agile software development. In-house teams should be empowered to refine and adapt systems over time, rather than outsourcing all innovation to external vendors.

This shift also involves thinking about public finance as part of a broader digital public infrastructure—connected to HR systems, procurement tools, performance dashboards, and citizen engagement platforms. In this way, public finance becomes not just a compliance function, but a strategic enabler of government performance.

Conclusion

In today’s world, a Minister of Finance or Treasurer should expect far more than static financial statements and opaque accounting practices. With the right digital infrastructure, the public finance system can become a powerful tool for real-time governance—giving ministers instant visibility over spending, outcomes, risks, and opportunities.

This new paradigm offers enormous potential. No longer should ministers be forced to navigate entrenched silos, inconsistent data, or outmoded funding models. Instead, they should have access to integrated, transparent, and responsive systems that enable them to lead with confidence.

Achieving this transformation is not a question of technology alone—it requires sustained leadership, cultural change, and a commitment to embedding digital thinking into the heart of fiscal management. But the reward is a more agile, accountable, and effective government—better equipped to meet the challenges of today and tomorrow.