Topic: Public expenditure and financial accountability framework

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PSAF – Mar 2025 – L2 – Q3- Public sector fiscal planning and budgeting

Examine implications of Ghana's 2025-2028 fiscal policy proposals per PFM Act 2016.

Question

a) The Government has unveiled its transformative agenda, driven by its fiscal strategy, covering the period 2025 -2028. In the Agenda 2028 document released by the government, the following strategies were outlined:

Taxes on individual income (referred to as pay-as-you-earn) will be suspended until 2029.
Development will be driven by debt, with the government leveraging its goodwill to borrow from development partners and investors to fund its development programmers and projects. By the end of 2024, the debt-to-GDP ratio was projected to reach 80%.
There will be significant government expenditure aimed at boosting development and enhancing citizens’ living conditions. Data from 2024 indicate that the fiscal balance relative to GDP stands at 17%.
All forms of extravagance and wastefulness within the public sector will be eradicated to ensure efficiency, effectiveness, and value for money across all government operations.
The statement also noted that the government reserves the right to suspend the fiscal rules and targets as and when necessary.

Required:
i) Examine the implications of the government’s policy propositions (1 to 4) in relation to the principles of formulating and implementing fiscal policy objectives outlined in the Public Financial Management Act 2016, (Act 921).

ii) Discuss the steps and events that will necessitate a cabinet approval for a suspension of the fiscal rules and targets under the Public Financial Management Act 2016, (Act 921).

b) The Public Expenditure and Financial Accountability (PEFA) Framework is designed to evaluate the public financial management performance of public institutions. However, some critics, including the Director of Finance of your entity, argue that PEFA represents a form of neo-colonialism repackaged for Africa, and therefore, African countries should resist its assessment.

Required:
i) Explain to the Director of Finance FOUR reasons your country’s PFM system should be subjected to PEFA assessment.

ii) Discuss FOUR limitations of the PEFA framework used to assess PFM systems.

Answer

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Tags: Debt Management, Efficiency, Fiscal Policy, Government Expenditure, PFM Act, Public Financial Management, Tax suspension
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: MARCH 2025

PSAF – Nov 2024 – L2 – Q5c – Functions of the State Interests and Governance Authority

Explains four functions of the State Interests and Governance Authority (SIGA) in overseeing state entities.

Question

The Nine Hundred and Ninetieth Act of the Parliament of the Republic of Ghana entitled the State Interests and Governance Authority Act, 2019 was established to oversee and administer state interests in state-owned enterprises, joint venture companies, and other state entities and to provide for related matters.

Required:

Explain FOUR functions of the State Interests and Governance Authority (SIGA).

Answer

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Topic: Public expenditure and financial accountability framework
Series: Nov 2024

PSAF – Nov 2024 – L2 – Q5b – Nolan’s Principles of Public Life

Explains four of Nolan’s Seven Principles of Public Life, which guide ethical behavior in public office.

Question

Nolan’s Seven Principles of Public Life serve as guidelines for ethical behavior in public service. They are not typically enforceable through direct legal actions; instead, they often operate as moral and professional standards shaping the behavior of individuals in public office.

Required:

Explain FOUR of these principles.

Answer

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Tags: Accountability, Integrity, Leadership, Nolan’s Principles, Professionalism, Public Ethics, Public Governance, Public Service, Selflessness
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: Nov 2024

PSAF – Nov 2024 – L2 – Q5a – Public Financial Management Regulations

Explains the provisions in PFM Regulation 2019 for a Principal Spending Officer in the payment process and differentiates between misapplication and misappropriation of funds.

Question

a) The Public Financial Management Regulation makes the Principal Spending Officer (PSO) personally responsible for all payments of the covered entity. To mitigate possible risk exposure of the PSO during the payment process, the regulations provide guidance to assist approving authorities before signing off any payment.

In recent times, the Auditor-General has faulted PSOs for infractions such as misapplication of funds, misappropriation of funds, and partially accounted payments among others. Similar observations were cited in the 2023 Management Letter of Nipa Ye Municipal Assembly.

Required:

i) With reference to the PFM Regulation 2019, LI 2378, explain the provisions available to the PSO in the payment process before approval.

ii) Distinguish between misapplication of funds and misappropriation of funds as used by the Auditor-General with an example each.

Answer

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Topic: Public expenditure and financial accountability framework
Series: Nov 2024

PSAF – Nov 2024 – L2 – Q3b – Public Expenditure and Financial Accountability (PEFA) Assessment

Evaluate the financial performance of a local government based on PEFA assessment results and recommend strategies for improvement.

Question

Accounting and reporting constitute a key pillar of an organised and transparent public financial management system in the public sector. The effectiveness of accounting and reporting reflects the integrity of financial data, the accuracy of in-year budget reports, and the quality of annual financial statements. In a recent Public Expenditure and Financial Accountability (PEFA) assessment, a local government had the following results:

Annual financial reporting: D
In-year budget report: D+
Financial data integrity: C

Required:
i) Explain the assessment performance to the Municipal Chief Executive of the local government.
ii) Recommend two strategies for improving the performance of the local government in each of the assessed areas.

Answer

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Tags: Budget Reporting, Data Integrity, EFA, financial assessment, Financial Reporting, Local Government
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: Nov 2024

PSAF – Nov 2016 – L2 – Q2d – Public Expenditure and Financial Accountability Framework.

Identifying essential provisions of the Financial Administration Act to protect public funds.

Question

In Ghana, the government has enacted the Financial Administration Act, 2003 and the Financial Administration Regulations (L.I. 1802) to ensure that public funds and resources are properly safeguarded and are used economically, efficiently, effectively and with due propriety.

Required:
Identify TWO essential provisions of the Financial Administration Act and Regulations meant to protect public funds and safeguard public resources and property. (4 marks)

Answer

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Tags: Financial Administration, Financial Laws, Government Spending, Public Funds, Public Resources
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: NOV 2016

PSAF – Nov 2016 – L2 – Q2a – Public Procurement.

Explain the stages involved in the national competitive tendering process for public procurement.

Question

Competitive tendering is a method of public procurement that seeks tenders from all potential suppliers or contractors to achieve value for money in public procurement. Competitive tendering is carried out in accordance with the competitive tendering procedures under the public procurement law.

Required: Explain FOUR procedures involved in carrying out national competitive tendering for the procurement of goods, services, and works. (6 marks)

Answer

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Tags: Competitive Tendering, Financial Laws, Government Spending, Procurement Procedure, Public Procurement
Level: Level 2

Topic: Public expenditure and financial accountability framework, Public Procurement, Public sector financing initiatives
Series: NOV 2016

PSAF – Nov 2016 – L2 – Q3c – Public expenditure and financial accountability framework.

Discuss four policy objectives ensuring adherence to public accountability principles by government institutions.

Question

Public accountability requires clear definition of responsibilities of public officials and a clear understanding of relationships between public officials and stakeholders on the need for transparency and accountability.
Required:
Discuss FOUR policy objectives of government that ensure that government institutions adhere to the principles of public accountability. (4 marks)

Answer

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Tags: Governance, Government Institutions, Policy Objectives, Public Accountability, Transparency
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: NOV 2016

PSAF – Nov 2016 – L2 – Q4e – Public Expenditure and Financial Accountability Framework.

Identify four procedures necessary for effective management of public expenditure.

Question

Effective management of public expenditure is an essential mechanism for the effective allocation and the use of public funds to achieve the nation’s policy objectives.

Required:
Identify four procedures necessary for effective management of public expenditure. (4 marks)

Answer

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Tags: Financial management, ICAG, Procedures, Professional Level 2, Public Expenditure
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: NOV 2016

PSAF – Nov 2016 – L2 – Q3d – Public sector fiscal planning and budgeting.

Explain four methods used by the government to ensure compliance with budgetary control regulations.

Question

The budgetary control function ensures effective control over government units in public spending and accountability for all funds, property, and other assets for which each department or agency is responsible.
Required:
Explain FOUR methods used by the government to ensure that government entities comply with budgetary control regulations. (4 marks)

Answer

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Tags: Budgetary Control, Government Accountability, Public Financial Management, Public Spending
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: NOV 2016

PSAF – Mar 2025 – L2 – Q3- Public sector fiscal planning and budgeting

Examine implications of Ghana's 2025-2028 fiscal policy proposals per PFM Act 2016.

Question

Taxes on individual income (referred to as pay-as-you-earn) will be suspended until 2029.
Development will be driven by debt, with the government leveraging its goodwill to borrow from development partners and investors to fund its development programmers and projects. By the end of 2024, the debt-to-GDP ratio was projected to reach 80%.
There will be significant government expenditure aimed at boosting development and enhancing citizens’ living conditions. Data from 2024 indicate that the fiscal balance relative to GDP stands at 17%.
All forms of extravagance and wastefulness within the public sector will be eradicated to ensure efficiency, effectiveness, and value for money across all government operations.
The statement also noted that the government reserves the right to suspend the fiscal rules and targets as and when necessary.

ii) Discuss the steps and events that will necessitate a cabinet approval for a suspension of the fiscal rules and targets under the Public Financial Management Act 2016, (Act 921).

Required:
i) Explain to the Director of Finance FOUR reasons your country’s PFM system should be subjected to PEFA assessment.

ii) Discuss FOUR limitations of the PEFA framework used to assess PFM systems.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Debt Management, Efficiency, Fiscal Policy, Government Expenditure, PFM Act, Public Financial Management, Tax suspension
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: MARCH 2025

PSAF – Nov 2024 – L2 – Q5c – Functions of the State Interests and Governance Authority

Explains four functions of the State Interests and Governance Authority (SIGA) in overseeing state entities.

Question

Required:

Explain FOUR functions of the State Interests and Governance Authority (SIGA).

Answer

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Topic: Public expenditure and financial accountability framework
Series: Nov 2024

PSAF – Nov 2024 – L2 – Q5b – Nolan’s Principles of Public Life

Explains four of Nolan’s Seven Principles of Public Life, which guide ethical behavior in public office.

Question

Required:

Explain FOUR of these principles.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accountability, Integrity, Leadership, Nolan’s Principles, Professionalism, Public Ethics, Public Governance, Public Service, Selflessness
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: Nov 2024

PSAF – Nov 2024 – L2 – Q5a – Public Financial Management Regulations

Explains the provisions in PFM Regulation 2019 for a Principal Spending Officer in the payment process and differentiates between misapplication and misappropriation of funds.

Question

Required:

i) With reference to the PFM Regulation 2019, LI 2378, explain the provisions available to the PSO in the payment process before approval.

ii) Distinguish between misapplication of funds and misappropriation of funds as used by the Auditor-General with an example each.

Answer

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Topic: Public expenditure and financial accountability framework
Series: Nov 2024

PSAF – Nov 2024 – L2 – Q3b – Public Expenditure and Financial Accountability (PEFA) Assessment

Evaluate the financial performance of a local government based on PEFA assessment results and recommend strategies for improvement.

Question

Annual financial reporting: D
In-year budget report: D+
Financial data integrity: C

Answer

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Tags: Budget Reporting, Data Integrity, EFA, financial assessment, Financial Reporting, Local Government
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: Nov 2024

PSAF – Nov 2016 – L2 – Q2d – Public Expenditure and Financial Accountability Framework.

Identifying essential provisions of the Financial Administration Act to protect public funds.

Question

Required:
Identify TWO essential provisions of the Financial Administration Act and Regulations meant to protect public funds and safeguard public resources and property. (4 marks)

Answer

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Tags: Financial Administration, Financial Laws, Government Spending, Public Funds, Public Resources
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: NOV 2016

PSAF – Nov 2016 – L2 – Q2a – Public Procurement.

Explain the stages involved in the national competitive tendering process for public procurement.

Question

Required: Explain FOUR procedures involved in carrying out national competitive tendering for the procurement of goods, services, and works. (6 marks)

Answer

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Tags: Competitive Tendering, Financial Laws, Government Spending, Procurement Procedure, Public Procurement
Level: Level 2

Topic: Public expenditure and financial accountability framework, Public Procurement, Public sector financing initiatives
Series: NOV 2016

PSAF – Nov 2016 – L2 – Q3c – Public expenditure and financial accountability framework.

Discuss four policy objectives ensuring adherence to public accountability principles by government institutions.

Question

Answer

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Tags: Governance, Government Institutions, Policy Objectives, Public Accountability, Transparency
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: NOV 2016

PSAF – Nov 2016 – L2 – Q4e – Public Expenditure and Financial Accountability Framework.

Identify four procedures necessary for effective management of public expenditure.

Question

Effective management of public expenditure is an essential mechanism for the effective allocation and the use of public funds to achieve the nation’s policy objectives.

Required:
Identify four procedures necessary for effective management of public expenditure. (4 marks)

Answer

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Tags: Financial management, ICAG, Procedures, Professional Level 2, Public Expenditure
Level: Level 2

Topic: Public expenditure and financial accountability framework
Series: NOV 2016

PSAF – Nov 2016 – L2 – Q3d – Public sector fiscal planning and budgeting.

Explain four methods used by the government to ensure compliance with budgetary control regulations.

Question

Answer

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Tags: Budgetary Control, Government Accountability, Public Financial Management, Public Spending
Level: Level 2