Question

In the 1992 Constitution and the financial laws [Public Financial Management Act 2016 (Act 921)] of Ghana, was introduced to ensure that Public Funds and resources are properly safeguarded and used economically, efficiently effectively and with due propriety.

Required:

Discuss how the systems put in place that are helping to confirm the above position or otherwise.

Answer 1

1. The object of this Act is to regulate the financial management of the public sector within a macroeconomic and fiscal framework. For this purpose-

(a) a framework to support sound fiscal policy and the macroeconomic management of public funds;

(b) processes for the preparation, approval and management of a transparent, credible and predictable annual budget

(c) mechanisms for the operation of the Consolidated Fund

(d) mechanisms for the management of public funds, assets and liabilities

(e) internal and external audit frameworks and correlative reporting and accounting systems;

Minister concerned shall prepare a budget annually and place before the Parliament for the approval. Further, the Controller and Accountant General shall conduct an audit and place his report in the parliament for its consideration.

Each year, Minister concerned shall place before the cabinet for its approval a fiscal policy objective of the Government.

Every middle-year not later than 31st July of each year, the concerned minister shall submit mid-year fiscal policy review document before parliament for its review and approval. Such minister shall also submit mid-year budget implementation document to parliament for its consideration.

2. The statement concerns that any money is so is withdrawn from the consolidated fund shall require the parliamentary approval and without such approval, any withdrawal will be unconstitutional. In other words, the executive cannot use the consolidated fund of Ghana without parliamentary approval.

FRBM Act is in consonance with the given statement. The act requires the minister to submit to parliament for its annual approval a Budget. The budget contains both receipt and expenditure outlined by the Government for the ensuing year for its policy, plan and actions. Without such approval of parliament, the government may have to close down the business and cannot use the money.

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