Experts have called for a concerted effort to address the challenge of sustaining Public Financial Management (PFM) reforms across government transitions, emphasizing the need for collaboration between stakeholders.
The Controller and Accountant-General (CAG), Kwasi Kwaning-Bosompem, raised concerns about the disruption of ongoing PFM initiatives during leadership changes, noting that this poses a significant national challenge.
Speaking at a PFM Focus Group Dialogue organized by the Association of Chartered Certified Accountants (ACCA), Mr. Kwaning-Bosompem stressed the importance of continuity and progress in PFM reforms to ensure fiscal transparency, accountability, and efficient use of public resources.
He highlighted systemic weaknesses in the nation’s PFM practices, such as lack of strategic planning, weak budgeting systems, poor compliance with regulations, and inadequate financial information for decision-making.
To address these challenges, Mr. Kwaning-Bosompem emphasized the need for collaboration among the government, professional accountants, civil society organizations, and other relevant stakeholders.
The dialogue also reviewed past PFM initiatives, including the Public Financial Management Reform Programme (PUFMARP) launched in 1995 and subsequent reforms like the Ghana Integrated Financial Management Information System (GIFMIS) launched in 2010.
Despite some successes in improving budget preparation and implementing electronic revenue systems, concerns have been raised about the nation’s growing debt stock and fiscal responsibility guardrails.
The surge in domestic debt, reaching GH¢194.4 billion in 2022, and the overall public debt rising to GH¢435.3 billion by the end of December 2022, have raised questions about the sustainability of the PFM framework.
To consolidate gains and ensure continuity in PFM reforms, stakeholders must take ownership of the process and prioritize public value in decision-making, according to Dr. Mohammed Sani Abdulai, Project Director for PFM Reforms at the Ministry of Finance.
The Deputy Controller and Accountant-General, Dr. Edward Boateng, acknowledged that while conditions were not perfect, the domestic framework and degree of continuity were better than in peer nations.
Helen Brand, Global Chief Executive of ACCA, pledged ACCA’s support in providing skilled personnel to enable the public sector to thrive, emphasizing the importance of professional accountants in contributing to the public sector’s development.
The dialogue underscored the significance of sustained collaboration and commitment to ensure the effectiveness and sustainability of PFM reforms in Ghana.