Sept. 20, 2016 On behalf of the Hon. Minister and Management of the Ministry of Finance, I would like to welcome you to this Media briefing on the Public Financial Management (PFM) Act, Act 921 which was passed into law by Parliament on 3rd August, 2016.
2. As you know, the Ministry has been implementing major structural reforms in Budgeting, Accounting, Payroll management, Revenue management, Debt management and Auditing over the past five years. We believe that the passage of the law will tie some of the key reforms together and provide a more coherent and overarching framework for the fiscal management of the public sector.
3. The passage of the new Public Financial Management Act in Ghana provided the government with an opportunity to codify some good practices introduced and evolved as part of the PFM Reform implementation
4. In addition, the Act will underpin Ghana’s ongoing reforms designed to address persistent weaknesses and promote fiscal discipline, transparency and accountability. It will help improve credibility of the budget, the predictability during budget execution, strengthen expenditure controls and reduce cash rationing, all of which contribute to improving the overall financial management of the public sector.
5. This Act has established the following:
Provide a framework for fiscal policy management
Institutionalization of reporting (Mid-Year Review, Budget Performance report)
Streamlining of statutory funds management, SOE financial management and Local government financial management and reporting.
Minimum contents of the annual budget (move toward more general government reporting)
A more centralized but expanded role for debt management
Development of an annual borrowing plan and updates
Borrowing by local government
More robust commitment control among others
6. The purpose of this meeting therefore, is to present the new PFM Act, Act 921 to you and highlight some key Sections and Clauses as covered in the Act.
7. We strongly believe that this Media briefing will help communicate and publicize to our Key PFM Stakeholders and the general public of the passage of the PFM Bill into an Act. In addition, it will provide key highlights and the far reaching implications with regard to the sanctions as covered in the Act on the use of public funds among others.
8. Thank you for making time once again and I hope we have a fruitful discussion.