Reasons for a decentralized financial management system in Ghana include:

• Scope of Financial Activities: The expanded financial activities of the government require restructuring to reflect the diversity of public financial management.
• Stewardship and Control: Decentralization enhances stewardship, allowing heads of departments to manage resources and handle unexpected events effectively.
• Local Planning: Local authorities are better suited to plan and execute policies that affect local people due to their familiarity with the environment.
• Cost Reduction: Decentralized administration reduces the cost of decision-making and brings financial management closer to the citizens.