Question Tag: Parliament

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The framers of the 1992 Republican Constitution of Ghana realised that the Controller and Accountant General and the Auditor- General alone cannot completely ensure the proper use and accountability of resources of Ghana. It is in this vein that Parliament has also been assigned some responsibility in the respect.

Required:

Assess the role of Parliament under the constitution in ensuring judicious use of the resources and proper accountability. (10 marks)

The 1992 Constitution of Ghana gives Parliament the following roles in Public Accountability and judicious use of resources:

  1. Taxation
    No taxation shall be imposed otherwise than by or under the authority of an Act of Parliament.
  2. Approval of Tax Waivers and Variations
    Where an act of Parliament confers power on any person or authority to waive or vary any tax imposed by Parliament, the exercise of the power of waiver or variation in favour of any person or authority shall be subject to prior approval of Parliament by resolution.
  3. Establishment of Public Funds
    Apart from the Consolidated fund and Contingency fund, Parliament has the authority to establish other public funds by an act of Parliament.
  4. Revenue Retention by Departments
    Parliament also has the power to authorise any authority or department to retain any revenue received by them for the purposes of defraying the expenses of that department.
  5. Contingency Fund Operations
    It is also Parliament that can authorise payment of monies into or withdrawal from the Contingency fund.
  6. Appropriation of Monies from Consolidated Fund
    No monies shall be withdrawn from the consolidated fund unless it is authorised by an appropriation act passed by Parliament or by supplementary estimate approved by a resolution passed by Parliament for that purpose.
  7. Approval of Government Loans
    Parliament may by resolution authorise government to enter into an agreement for a loan out of any public fund or public account.
  8. Public Accounts Committee
    Apart from the finance function, Parliament also has Public Accounts Committee which receives the annual report of the Auditor General.
  9. Implementation of Auditor General’s Recommendations
    The committee pursues the implementation of the recommendations of the Auditor General’s report to ensure that MDAs and MMDAs comply with the recommendations.

(1 mark for every point = 9 marks)
(1 mark for presentation = 1 mark)
(Total: 10 marks)

Parliament has a constitutional mandate to scrutinize government spending. This oversight function is vested in the legislature as a fundamental principle of the separation of powers. There is, however, the need to improve the capacity of Parliament, especially the committees given the authority to keep the executive in check and to spend within the budget.

Required:
Discuss FOUR (4) ways by which Parliament can enhance public financial management in Ghana, bearing in mind relevant legislations. (10 marks)

Ways Parliament Can Enhance Public Financial Management in Ghana:

  1. Enacting Effective Legislation: Parliament can enhance public financial management by ensuring that strong and effective laws are passed to govern the management of financial resources. Parliament has the power to scrutinize and debate financial laws dispassionately, ensuring they are robust and relevant. If laws are found to be weak or outdated, Parliament should act swiftly to amend or repeal them to ensure they remain effective.
  2. Ensuring Compliance with Existing Laws: Beyond passing laws, Parliament must ensure that existing financial legislation is strictly complied with by the executive and public sector managers. This can be achieved through rigorous oversight functions, regular inquiries, and the imposition of sanctions where there is non-compliance with the laws.
  3. Scrutinizing and Approving the National Budget: Parliament’s role in scrutinizing and approving the national budget and supplementary budgets is crucial. By conducting detailed examinations of the budget, ensuring that it aligns with national priorities, and rejecting politically motivated expenditures, Parliament can ensure that public resources are allocated effectively and in the public interest.
  4. Monitoring Budget Implementation: Parliament can enhance public financial management by closely monitoring the implementation of the budget throughout the fiscal year. This includes demanding timely mid-year review reports from the Minister of Finance as required by the Public Financial Management Act 2016, analyzing these reports critically, and taking corrective action where deviations from the approved budget are identified.
  5. Effective Examination of Public Accounts: Through the Public Accounts Committee (PAC), Parliament should ensure that the Auditor-General’s reports on the public accounts are thoroughly examined, and any cases of financial irregularities are investigated. PAC should ensure that recommendations are implemented promptly, holding public officers accountable for their financial management practices.
  6. Enforcing Sanctions for Financial Misconduct: Parliament should ensure that there is an effective sanctioning regime for corruption and other financial malpractices in the public sector. It should ensure that recommendations for sanctions from PAC or other oversight bodies are implemented without delay.
  7. Summoning Public Officers for Accountability: Parliament should regularly summon public officers to answer questions about their financial management practices, particularly where there are indications of mismanagement or misuse of public funds. This will enhance accountability and deter financial misconduct.