Accra, Dec. 23, GNA - A new Public Financial Management and Accountability (PFM) Bill is being drafted to replace the existing financial administration Act and its regulations of 2013.
The Bill when approved would be the overarching legislation, which would provide a more robust framework for macro-fiscal policy formulation, control and management of all public funds.
Major Samuel Mahama Tara, the Chief Director, Ministry of Finance, speaking at the discussion on the drafting of the PFM Bill said the document was part of a broader agenda to improve budget credibility, results and performance and accountability and transparency.
He said the decision to introduce the new law had been driven by a number of reasons, including fiscal challenges that require some structural changes, commitment to meet good economic governance requirements and new policy measures regarding borrowing and debt management.
The Chief Director said it was to provide a more robust macroeconomic and fiscal responsibility framework to guide and anchor fiscal policies.
He said it was also to provide stronger regulatory framework for financial management and control money, assets, other resources and liabilities.
Mrs Eva Esselba Mends, Chief Economic Planning Officer, Ministry of Finance, said the scope of the Bill included macro fiscal formulation, budget formulation and preparation, internal audit, accounting and reporting, local government borrowing and a sanctions regime.
She said the expected benefits of introducing the law are more transparent consultative fiscal policy formulation process to garner support for government's fiscal policy and improved budget credibility and fiscal outcomes and more sustainable debt through tighter borrowing controls and systems.
Other benefits are a stronger sanctions regime that would ensure compliance to the PFM rules and punish breaches and acts of corruption, improved service delivery through the effective monitoring of results and performance of the public sector institutions and tighter commitment control to reduce budget overruns and accumulation of arrears.