a) Provisions in the 1992 Constitution Relating to Budgeting

i) Responsibility and Authority for National Budget:

• The President is required to prepare and lay before Parliament at least one month before the end of the financial year, estimates of the revenues and expenditure of the Government of Ghana for the following financial year.
• Budget system and budget presentation: The estimates of the expenditure of all
  public offices and public corporations, other than those set up as commercial
  ventures shall be classified under programmes or activities which shall be included
  in a bill to be known as an Appropriation Bill and which shall be introduced into
  Parliament to provide for the issue from the Consolidated Fund or such other
  appropriate fund, of the sums of money necessary to meet that expenditure and
  the appropriation of those sums for the purposes specified in that bill; and (b) shall
  in respect of payments charged on the Consolidated Fund, be laid before
  Parliament for the information of members of Parliament.
• Estimates of the Judicial Council: The Chief Justice shall, in consultation with the
  Judicial Council, cause to be submitted to the President at least two months before
  the end of each financial year, and thereafter as and when the need arises(a) the
  estimates of administrative expenses of the Judiciary charged on the Consolidated
  Fund under article 127 of this Constitution; and (b) estimates of development
  expenditure of the Judiciary.
• Laying of Estimates of Judicial Council: The President shall, at the time specified
  in clause (1) of this article, or thereafter, as and when submitted to him under
  clause (3) of this article, cause the estimates referred to in clause (3) of this article
  to be laid before Parliament.

ii) Citizen’s Budget and Its Benefits

Explanation of Citizen’s Budget:A Citizen’s Budget is a simplified version of a government’s budget, designed to be understood by the general public. It presents the key components of the budget in an accessible format, using clear language, charts, and graphics that are easy for non-experts to understand.

 Benefits of Citizen’s Budget:

1. Enhances Transparency and Accountability: Citizen’s Budgets make government fiscal policies and decisions more transparent, thereby holding the government accountable to the public.
2. Promotes Civic Engagement: It empowers citizens by informing them about government financial decisions, which can lead to more informed public participation in governance.
3. Improves Public Understanding: By presenting budget information in a simplified format, it increases the public’s understanding of how public funds are being used, thereby fostering trust in government.

iii) Role of Budget Guidelines and Items in a Budget Guideline

Role of Budget Guidelines:Budget guidelines provide comprehensive information on the policies, constraints, and procedures for the current budgeting process. They guide Ministries, Departments, and Agencies (MDAs) in preparing their budgets by outlining the economic outlook, revenue forecasts, fiscal targets, and budget ceilings:

 Items to be Expected in a Budget Guideline:

1. Economic Outlook: Information on the country’s economic environment, including GDP growth rates, inflation, and exchange rates.
2. Revenue Forecasts: Expected revenue collections from various sources, including taxes, grants, and other income.
3. Fiscal Targets: These include goals related to debt levels, budget deficits, and other financial targets.
4. Expenditure Ceilings: Maximum spending limits for each government department or agency.

b) Dealing with Financial Transactions Not Covered by IPSAS

• When a financial transaction is not covered by any existing IPSAS, management must apply judgment to develop an appropriate accounting policy. This involves:
  1. Considering the relevance and reliability of the financial information: The policy should result in information that is useful to users for making economic decisions.
  2. Referencing Other IPSAS Standards: Management should refer to IPSAS standards that address similar or related issues.
  3. Applying Established Practices: Consider industry practices or standards used by similar public sector entities.
  4. Consistency: The chosen policy should be applied consistently in future transactions of a similar nature, ensuring comparability of financial statements over time.
  5. Disclosure: Any policy chosen should be fully disclosed in the financial statements to inform users of the applied methodology.