Reference no: EM132967310

NCG also raises issues about the porous public financial management system (PFM) of the country, expressing that the country needs a robust PFM to achieve its development goals. It has cited the Public Expenditure and Financial Accountability (PEFA) report to make the case that Ghana is performing poorly in PFM. It observes that all the seven pillars of PFM are very weak and porous and government must do the necessary investments to improve the system. The Minister agrees with the NCG and indicates that government welcomes proposals as to how the PFM system can be improved to deliver the intended outcomes. The Minister discloses that the government is proposing to establish a fund purposely for improving the PFM. The PFM Fund, when established, will bring total transformation to the PFM in Ghana.

Required:

Problem a) Based on the computation of relevant fiscal indicators in accordance with the Public Financial Management Act 2016 (Act 921), discuss the fiscal performance of the country and indicate (with reason) whether you agree with the assessment of NCG.

Problem b) Based on your computations of fiscal indicators in question (a) above, suggest three (3) fiscal policies to government to improve the situation.

Problem c) Discuss the merits of the proposal of the Minister of Finance to abolish national budgeting, and clearly indicate your position on the acceptability and feasibility of the proposal.

Problem d) Discuss the strengths and weaknesses of the proposal of NCG to use international competitive tendering method to procure the COVID-19 Vaccine for the entire population and make an informed judgement on the use of the proposed method.

Problem e) Examine the merits of the proposal of the Minister of Finance to establish a PFM Fund for the improvement of PFM system in Ghana and suggest three areas that the monies accruing to the fund should be applied.