Public Financial Management In Ghana

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The recent Third Conference of Finance for Development underscored the role of prudent public financial management in the attainment of the Sustainable Development Goals.

Following the Paris Declaration (2005) and the Accra Agenda (2008), development partners increased aid commitments to developing country treasury's consolidated revenue fund account. The development led to an increased interest in the performance of Public Finance Management (PFM) in the countries that receive budget support.

According to the World Bank, without proper management of public funds the macro economy will be negatively affected resulting in adverse effects on the business climate and
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Under PUFMARP, the Government introduced a medium term expenditure framework (MTEF) intended to improve the links between policy-making, and planning and budgeting system. Whilst implementing PUFMARP project, efficient management of public finance with the view to eliminating waste and getting value for money remains a challenge.

However, Ghana’s public sector was besieged with a number of challenges, notable among them are as follow: Lack of accurate and current information on budgetary allocations, commitments and actual revenue and expenditures, delays in Payment Processing and Financial Reporting.

To address these challenges, the government decided to embark on a computerized government financial management information system, named the Budget and Public Expenditure Management System (BPEMS),

The project was aimed at promoting efficiency, transparency and accountability in public financial management through rationalization and modernization of budgeting and public expenditure management of the Government of Ghana
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It has resulted in improved budget, financial management and report processes. It has also provided accurate, timely and reliable financial information to both central government and decentralized economic planning offices nationwide.

With the introduction of a unified Chart of Account and database for all government institutions and creates uniform in account and report, the system boost and buttress the internal control systems of public financial management’s accountability and provide records of business processes, workflows and approval levels to ensure reliable and apt compliance across MDAs and MMDAs.

Additionally GIFMIS gives an effective and efficient preparation of budget execution, monitoring and evaluation mechanism as well as improve the contact between and among other financial management players like Public Procurement Authority, Bank of Ghana, and Ghana Revenue Authority, among others. With this, GIFMIS, financial legislation remains enhanced and enforced.

With the passage of the Public Sector Financial Bill into Law, GIFMIS has assumed the role to entrench MDAs/MMDAs to spend within their budget allocation due to budgetary control and reduce manual processes, and duplicate entry and
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