Press table for Central Government transfers to Local Government for Jan 2009

The Public Finance and Accountability Bill (PFAB)

One of the pillars of strengthening financial management in the public sector is a legislation that provides the legal framework, and prescribes the controls and administrative structures for the management and accounting for public funds. Management and accountability for public funds involves the whole process including: macroeconomic and fiscal policy, budgeting, utilisation of resources, accounting and reporting, auditing by the Auditor General, reporting to Parliament, and feedback from Parliament. It is, therefore, important that there is a legal infrastructure that harmonises the process.

The current legal and administrative infrastructure for financial management practices in Government is enshrined in the 1995 Constitution and the Public Finance Act, 1964; with the accompanying detailed procedures in the Treasury Financial Instructions, 1963, the Treasury Accounting Instructions (Finance), 1991, and the Treasury Accounting Instructions (Stores), 1968. Whereas the Constitution is fairly up to date (though requiring amendments in certain areas), the Public Finance Act that was enacted in 1964 is outdated and requires updating to be brought in line with the Constitution and more recent legislation such as the Budget Act, 2001 and the Local Governments Act, 1997. In addition, significant advances in budgeting and financial management practices have occurred and it is necessary for the legislation to incorporate these changes