Govt will support MMDAs to improve their IGFs

The government is to support metropolitan, municipal and district assemblies (MMDAs) to automate the collection and administration of revenue to increase their internally generated funds (IGFs), the Minister of Finance, Mr Ken Ofori-Atta, has said.

He explained that the move was part of measures by the government to deepen decentralisation and ensure that MMDAs were more efficient, effective and accountable in the implementation of policies and programmes.

Mr Ofori-Atta, therefore, charged regional ministers and metropolitan, municipal and district chief executives (MMDCEs) to lead the crusade by initiating programmes that would enable them to improve their IGFs to complement transfers from the Consolidated Fund as the country pursued the Ghana Beyond Aid agenda.

“In our drive towards Ghana Beyond Aid, it is imperative that we significantly increase domestic revenue, raise efficiency in the use of public resources and protect the public purse from leakages,” he added.

Event

The minister said this in a speech read on his behalf by the Technical Advisor to the Ministry of Local Government, Dr Eric Oduro Osae, at the opening of the Greater Accra Regional Budget Hearing for the preparation of the 2020-2023 composite budget of MMDAs in Accra yesterday.

The two-day event is being attended by assembly members of the 29 MMDAs in the region, as well as traditional leaders, civil society groups, among others.

Issues being discussed include a 2020-2023 budget and how it can be responsive to the needs of the citizenry.

Objectives

The budget hearing, which is currently going on across the country, is consistent with the Public Financial Management Act and Regulations which seek to ensure a linkage of the annual action plans of assemblies to their budget for effective implementation.

The process is also to deliberate on ways to improve the IGFs of assemblies and guarantee the judicious use of resources for the implementation of government priority programmes for 2020.

Revenue generation

Although IGFs were a main component of revenue mobilisation in the assemblies, Mr Ofori-Atta said, the MMDAs were not able to meet their targets, for which reason he urged them to do more in their revenue generation drive, and mentioned property rate as one of the avenues where they could mobilise more revenue for development.

He also asked the assemblies to review their nominal payroll data of staff to clear the payroll of ‘ghost’ names.

Considering the fact that Ghana was a signatory to the UN Sustainable Development Goals (SDGS), he told the MMDAs to prepare their policy objectives in line with those goals.

Mr Ofori-Atta further urged the assemblies to engage with their Members of Parliament (MPs) to ensure that appropriate provisions were made in the budget for the utilisation of the MPs Common Fund to conform to budget classifications.

Financial laws

The Greater Accra Regional Minister, Mr Ishmael Ashitey, directed the MMDCEs to strictly comply with relevant financial laws to avoid irregularities in their operations.

He said the assemblies must also ensure that all financial transactions were processed on the Ghana Integrated Financial Management

Information System (GIFMIS) platform, which is the legal stage for all government business in the country.THE government is to support metropolitan, municipal and district assemblies (MMDAs) to automate the collection and administration of revenue to increase their internally generated funds (IGFs), the Minister of Finance, Mr Ken Ofori-Atta, has said.

He explained that the move was part of measures by the government to deepen decentralisation and ensure that MMDAs were more efficient, effective and accountable in the implementation of policies and programmes.

Mr Ofori-Atta, therefore, charged regional ministers and metropolitan, municipal and district chief executives (MMDCEs) to lead the crusade by initiating programmes that would enable them to improve their IGFs to complement transfers from the Consolidated Fund as the country pursued the Ghana Beyond Aid agenda.

“In our drive towards Ghana Beyond Aid, it is imperative that we significantly increase domestic revenue, raise efficiency in the use of public resources and protect the public purse from leakages,” he added.

Event

The minister said this in a speech read on his behalf by the Technical Advisor to the Ministry of Local Government, Dr Eric Oduro Osae, at the opening of the Greater Accra Regional Budget Hearing for the preparation of the 2020-2023 composite budget of MMDAs in Accra yesterday.

The two-day event is being attended by assembly members of the 29 MMDAs in the region, as well as traditional leaders, civil society groups, among others.

Issues being discussed include a 2020-2023 budget and how it can be responsive to the needs of the citizenry.

Objectives

The budget hearing, which is currently going on across the country, is consistent with the Public Financial Management Act and Regulations which seek to ensure a linkage of the annual action plans of assemblies to their budget for effective implementation.

The process is also to deliberate on ways to improve the IGFs of assemblies and guarantee the judicious use of resources for the implementation of government priority programmes for 2020.

Revenue generation

Although IGFs were a main component of revenue mobilisation in the assemblies, Mr Ofori-Atta said, the MMDAs were not able to meet their targets, for which reason he urged them to do more in their revenue generation drive, and mentioned property rate as one of the avenues

where they could mobilise more revenue for development.

He also asked the assemblies to review their nominal payroll data of staff to clear the payroll of ‘ghost’ names.

Considering the fact that Ghana was a signatory to the UN Sustainable Development Goals (SDGS), he told the MMDAs to prepare their policy objectives in line with those goals.

Mr Ofori-Atta further urged the assemblies to engage with their Members of Parliament (MPs) to ensure that appropriate provisions were made in the budget for the utilisation of the MPs Common Fund to conform to budget classifications.

Financial laws

The Greater Accra Regional Minister, Mr Ishmael Ashitey, directed the MMDCEs to strictly comply with relevant financial laws to avoid irregularities in their operations.

He said the assemblies must also ensure that all financial transactions were processed on the Ghana Integrated Financial Management

Information System (GIFMIS) platform, which is the legal stage for all government business in the country.

The use of the GIFMIS for processing public finance transactions is a legal requirement under Section 25 (6) of the Public Financial Management (PFM) Act.

“All public officers are, therefore, cautioned and reminded that failure to properly use the GIFMIS to conduct financial transactions comes with corresponding sanctions, as stipulated in Section 98 (1) of the act,” Mr Ashitey said.

He further urged MMDAs to strengthen their respective internal audit units and audit committees to enable them to perform their respective roles to mitigate fiscal risks, as well as forestall any financial malfeasance.

The use of the GIFMIS for processing public finance transactions is a legal requirement under Section 25 (6) of the Public Financial Management (PFM) Act.

“All public officers are, therefore, cautioned and reminded that failure to properly use the GIFMIS to conduct financial transactions comes with corresponding sanctions, as stipulated in Section 98 (1) of the act,” Mr Ashitey said.

He further urged MMDAs to strengthen their respective internal audit units and audit committees to enable them to perform their respective roles to mitigate fiscal risks, as well as forestall any financial malfeasance.