i) Expenditure in Advance of Appropriation
Expenditure in advance of appropriation occurs when the budget cannot take effect at the beginning of the fiscal year. In such cases, the President of Ghana is required to seek approval from Parliament to allow government spending before the budget is formally approved. This practice ensures that essential government functions continue uninterrupted. The authority for expenditure in advance lapses either when the budget is approved or three months after the end of the year, whichever comes first.

(2 marks)

ii) Mid-Year Review
The mid-year review is a process mandated by the Public Financial Management Act, which requires the Minister of Finance to prepare and submit to Parliament a mid-year fiscal policy review not later than 31st July of each financial year. The review includes an overview of recent macroeconomic developments, updates to macroeconomic forecasts, an analysis of total revenue, expenditure, and financing performance for the first half of the year, and a presentation of a revised budget outlook for the remainder of the year. The review may also propose a supplementary budget if necessary.

(2 marks)

iii) Commitment
Commitment in public financial management refers to the practice of reserving funds in the budget to cover expenditure decisions made by management. This ensures that when a decision is made to spend, the necessary funds are already allocated and available, preventing overspending. Commitments typically take the form of purchase orders, contracts, or other obligations. Under the Public Financial Management Act, all expenditures should be preceded by a commitment to ensure adherence to the budget, and failure to do so is considered an offense.

(2 marks)