To introduce or not to?
Even as the demands of Ghanaians keep increasing and the resources remain largely the same, I think the government believes that the introduction of the E-Levy will be the game-changer.
The opposition National Democratic Congress (NDC) in and outside Parliament are up in arms against its introduction.
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Some Ghanaians suspect the zeal of the NDC on this issue may be due to political expediency or altruism or both.
I am indifferent to the introduction or otherwise of the E-Levy into our revenue mix. There are no easy ways of raising revenue, especially in the developing world.
Mr Ken Ofori Atta and his immediate predecessor, Mr Seth Tekper, may testify to my assertion.
However, there are simple processes, which when undertaken with due diligence, would result in the dramatic increases of our national revenues.
Our system, which conforms to universal practice, consists of a number of processes. These processes are regulated by laws, rules, regulations and guidelines.
Four key processes are explicitly or implicitly identifiable in the Public Financial Management Act (2016) Act 921.
These processes are mandatory requirements of all “covered entities” of government, and they are: Budgeting; Safeguarding, Monitoring, and Accountability.
Budgeting
It is determining the income, the capital and others to finance the expenditure planned for the period by preparing a detailed budget.
The budget must be based on authentic data and reliable information. Budget implementation must be religiously expedited.
Is about implementing controls to ensure that income, capital and other assets are safeguarded against fraud, theft and improper use.
Safeguarding must go beyond the promise of protecting the public purse.
All public agencies must be responsible for protecting the public purse and to account for their stewardship in their mobilisation and utilisation of public funds.
Audit is one of the methods in dealing with corruption. But before the applause for the Auditor-General for the reports on 2020 accounts of state institutions die down, what is the status of his reports, if I may ask?
Ghana’s Corruption Perception Index (CPI) for 2021 released on Tuesday, February 1, 2022 revealed no improvement over the previous ones.
Let’s wait for the verdict of the Public Accounts Committee (PAC). “Poor audit is worse than no audit” asserts the International City Managers’ Association (ICMA).
The impact of these reports ought to be felt in the financial management function.
Monitoring actual result and performance against budgets.
Any significant variations noticed must be investigated immediately by the Internal Audit Agency operatives or any suitable institution and reported on to the Ministry of Finance.
Anything short of this will undermine effective financial management.
Accountability
Is essentially reporting to all stakeholders by the preparation of relevant reports by public officials who have the duty of mobilising and expending money on our behalf.
These reports must state clearly what it is: (a) what it purports to cover; (b) the period it covers, and (c) the name and status of the author.
Whether the current arrangement whereby the (PAC) of Parliament serves as the “last stop” for public financial reports is ideal in the fight against corruption, should be a matter of public interrogation.
its lessons to build consensus on the introduction of the E-Levy.
More importantly, we need to recognise and appreciate the inescapable fact that it’s the discipline of execution of the four processes of the financial management function which will ultimately be the gamechanger.
The writer is a Consultant in Local Government, Weija – Accra. E-mail: [email protected]