- 10 Marks
PSAF – May 2018 – L2 – Q3b – Public sector fiscal planning and budgeting
Prepare the MDA’s annual budget and calculate the amount of budgetary subvention support required for the fiscal year.
Question
The Budget Department of a Ministry, Department, and Agency (MDA) has received the following inputs from the cost centres for the 2015 budget year:
| Expenditure Item | Amount (GH¢) |
|---|---|
| Construction Works – New Projects | 289,199.28 |
| Information and Documentation | 250,877.16 |
| Depreciation of Assets | 450,000.00 |
| Miscellaneous General Expenditure | 180,000.00 |
| Property Purchases | 366,874.28 |
| Staff Allowances | 50,315.60 |
| Research Activities | 243,596.45 |
| Charges and Fees | 17,752.62 |
| Repairs and Maintenance | 32,294.05 |
| Rehabilitation Expenses | 661,506.00 |
| Special Services | 24,327.00 |
| Travel and Transport | 270,789.35 |
| Printing and Publication | 151,924.25 |
| Materials and Consumables | 193,236.81 |
| General Cleaning | 450,000.71 |
| Utilities | 650,000.81 |
| Salaries for Established Post | 783,594.00 |
| Staff Overtime | 871,900.00 |
| Advertisement and Media | 170,000.74 |
| Out-of-Station Allowances | 131,114.85 |
| Insurance | 74,943.28 |
For the 2015 fiscal year, the Ministry has projected to generate an amount of GH¢3,036,230.57 from Internally Generated Funds. The law in 2015 allowed the MDA to retain all internally generated funds and use it to finance their budget expenditure.
Required:
i) Prepare the MDA’s annual budget using the current chart of accounts for the public sector and submit it to the Ministry of Finance as their proposed budget for the 2015 fiscal year. (8 marks)
ii) Calculate the amount of budgetary subvention support required from the Ministry of Finance for the 2015 fiscal year. (2 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Budget Subvention, MDA Budget, Public Sector Budgeting
- Level: Level 2
- Topic: Public sector fiscal planning and budgeting
- Series: MAY 2018