The passage of this Act has become necessary to codify the best practices that have emerged with the implementation of major reforms in budgeting and accounting since 2010 under the GIFMIS project. In addition, continuing fiscal challenges which require some structural changes are addressed in this Act. There are also provisions setting out new policy measures regarding borrowing and debt management among others.
The Government as part of effort to progressively strengthen the structural foundation for more robust PFM systems has undertaken various reforms. The goal of these reforms is to establish efficient, transparent and accountable resource mobilization, allocation, management and use of fiscal resources to meet Ghana’s development priorities and commitments.
The object of this Act is to regulate the financial management of the public sector within a macroeconomic and fiscal framework. For the purpose of subsection (1) of the Act, there shall be established (a) a framework to support a 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; and a mechanism to oversee the matters specified under paragraphs (a) to (e).
For the first time, we have provided a comprehensive, legislative framework for the operations of the entire public sector. This includes central government, local authorities, statutory funds and State Owned Enterprises (SOEs).