BUDGETING AND BUDGETARY CONTROL

Question 1

Post budget management and control activities prescribed under the Public Financial Management Act, 2016 (Act 921).

Answer 1

-Mid-year review
-Budget performance report
-Supplementary budget
-Virement
-Reallocation of funds
-Cash forecasting

Question 2

What are Budget Guidelines

Answer 2

They provide clear instructions about the processes and procedures MDAs and MMDAs should use to prepare their budget proposals and budget estimates.

Question 3

Importance of Budget Guidelines in Public Sector Accounting and Finance

Answer 3

-control of aggregate expenditure to ensure affordability; that is, consistency with the macroeconomic constraints;
-effective means for achieving a resource allocation that reflects expenditure policy priorities;
-efficient delivery of public services (productive efficiency);
-minimization of the financial costs of budgetary management (i.e., efficient budget execution and cash and debt management practices).