Question

“It is therefore imperative for the executive to obtain Parliamentary consent, both to raise money (revenue) and to spend it (disbursements)”.

Required:

Discuss the validity or otherwise of the above statement from the 1992 constitution as far as Public Sector Finance is concern

Answer 1

The statement concerns that any money so withdrawn from the consolidated fund shall require the parliamentary approval and without that approval, any withdrawl would be unconstitutional. In simple words, an executive cannot use the consolidated fund of Ghana without parliamentary approval.

FRBM Act is in consonance with the given statement.The act requires the minister to submit to the parliament for its annual approval i.e a budget. Budget contains both receipt and expenditure outlined by the Government for the ensuring year for its policy,plans and actions. Without such approval of parliament, government may have to close down the business and cannot use the money.