Agile and Lean Frameworks for Enhancing Accountability and Efficiency in Public Financial Management Systems in Emerging Economies

Abstract

Aim: The study evaluates what Agile and Lean governance strategies can do in public financial systems in emerging economies to improve fiscal accountability, service delivery and budgeting efficiency. Methodology: A systematic literature review methodology with PRISMA guidelines emphasis on empirical studies and reports, from databases including Scopus, World Bank, and OECD were used. Findings: This review reveals that Agile and Lean frameworks dramatically improve public financial management by improving fiscal accountability, budgeting efficiency, and service delivery. Drawing on 49 studies published between 2010 and 2025, the majority from emerging economies with selected comparative OECD cases, budgeting and procurement reforms emerged as the dominant sectors analysed. Agile’s iterative and adaptive approach allows governments to make real-time adjustments to budgets, enhancing the economy’s response to economic developments and crises. They focus on reducing waste and financial planning to ensure that public funds are allocated efficiently and effectively. Similarly, Rwanda and Nigeria demonstrate the benefits of using these frameworks. Agile enabled rapid budget adjustments in Rwanda to improve fiscal responsiveness, while Nigeria used Lean principles to streamline procurement and improve resource allocation across local governments. But, the interconnection of these frameworks faces challenges, including institutional resistance, lack of skilled personnel and political constraints, which hinder full adoption in public financial systems. But these barriers highlight the potential for Agile and Lean to create more responsive, transparent, and efficient public financial management systems in developing economies. Conclusion and Recommendations: Agile and Lean processes would through transparency and efficiency enhance fiscal accountability and service delivery significantly. Governments, by learning from successful implementations, need to prioritise capacity-building and institutional reform that solves adoption barriers to successful implementation in PFM systems.