Central Finance Agencies (CFA) ofcountries are pivotal to the Public Finance Management (PFM)reform process. Thus, the capabilities - not just capacities- of CFAs are critical to bringing about transformation.Strengthening CFA capabilities, and thereby drivinggovernment performance, is not a mere technical issue butrequires a broader political economy perspective thatcaptures the complexinteractions which directly andindirectly relate to a CFA. As the World Bank continues tosupport PFM reform processes in various client countriesacross the world, a deeper understanding of the role andcapabilities of CFAs as the central element in thesetransformations is essential. This paper proposes one suchframework one that approaches the challenge of enhancing thecapabilities of CFAs through a political economy perspective.