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From transactional to policy ministries of finance


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From transactional to policy ministries of finance

Overseas Development Institute

24th April 2025

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Finance ministries around the world are increasingly being called upon to play a leading role in addressing today’s most pressing challenges — from climate change and pandemic preparedness to long-term human capital development. Yet there remains a limited understanding of how these institutions operate internally, and why their roles differ so substantially across countries.

This working paper examines the variation in the structure and function of finance ministries, with a focus on how they engage with policy. It draws on insights from both the public financial management (PFM) literature and the public administration and policy fields to offer a new perspective on how finance ministries adapt to evolving demands.

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