By Daniel Bampoe
In a bold move to tighten public financial discipline, Kojo Oppong Nkrumah, Member of Parliament for Ofoase-Ayirebi and Ranking Member on the Parliamentary Economy Committee, has tabled a Private Member’s Bill seeking to plug a critical loophole in the budget execution framework.
The proposed legislation — titled the Public Financial Management (Amendment) Bill, 2025 — aims to bar Ministries, Departments and Agencies (MDAs) and Metropolitan, Municipal and District Assemblies (MMDAs) from accessing public funds unless their development plans are certified by the National Development Planning Commission (NDPC).
The bill is being introduced as part of a wider effort to align public spending with the national development vision, reduce wasteful expenditure, and enforce fiscal discipline across all levels of government.
A Legal Gap with Costly Consequences
The current Public Financial Management Act, 2016 (Act 921), already outlines broad obligations for public institutions to link their budgeting processes to certified development plans.
Section 21(5) of the Act hints at this alignment, but according to Oppong Nkrumah, it lacks the “explicit and enforceable” language needed to compel compliance.
As a result, various state agencies, districts, and ministries continue to receive funding — including Internally Generated Funds (IGF), statutory funds, and resources from the District Assemblies Common Fund (DACF) — without any coherent or certified development plan in place.
“This has led to fragmentation, misaligned projects, and duplication of efforts, costing the taxpayer millions of cedis each year,” Mr. Oppong Nkrumah said in a memo to the Speaker of Parliament.
What the Amendment Will Do
The amendment bill, if passed, would legally bar:
The Ministry of Finance
The Administrator of the DACF
Any statutory fund manager from disbursing funds to any MDA or MMDA that lacks a certified medium-term development plan approved by the NDPC.
It would also: Extend this restriction to Internally Generated Funds (IGFs).
Introduce administrative sanctions for public officers who violate this requirement.
Tie budget approvals directly to the national Medium-Term Development Policy Framework, developed by the NDPC in partnership with cross-sectoral planning groups.
According to Oppong Nkrumah, this step is essential to implementing Articles 36(5), 86, and 87 of the 1992 Constitution, which mandate coordinated planning and development.
Letter to Parliament
In a formal letter dated July 4, 2025, addressed to the Speaker of Parliament, Oppong Nkrumah gave notice of his intent to present the bill and requested assistance from the Parliamentary Drafting and Research Departments in preparing the final legal draft.
He wrote: “This amendment will ensure that all public funding—whether from the Consolidated Fund, DACF or IGFs—is tied to coherent and nationally aligned plans. We must eliminate ad-hoc budgeting and enforce planning discipline.”
The NDPC’s Role
The National Development Planning Commission (NDPC) is constitutionally empowered to coordinate national planning.
Through its framework documents and regulations such as Acts 479 and 480, and Legislative Instruments 2232 and 2402, the NDPC works with various sectors to develop the Medium-Term National Development Policy Framework.
But in practice, its role has often been undermined by entities bypassing this planning process while still accessing public funds.
The proposed law would reinvigorate the NDPC’s coordinating mandate by making its certification a legal precondition for public financial transfers.
Anticipated Impact
If passed into law, the Public Financial Management (Amendment) Bill, 2025 would:
Force institutions to align their spending plans with national priorities.
Prevent the misuse of IGF and statutory funds for non-aligned or political projects.
Promote fiscal transparency and public sector accountability.
Serve as a deterrent against mismanagement and politically motivated disbursements.
Critics of government inefficiencies have often cited examples of district assemblies spending millions on isolated infrastructure projects without broader development logic or coordination.
A Test for Parliament
This Private Member’s Bill is one of the most technically ambitious legislative proposals introduced in the 9th Parliament and will test both bipartisan commitment to development planning and the appetite for reform ahead of the 2026 general elections.
It is also expected to reignite public discourse on the efficiency of public financial management and the need to tether government spending more firmly to long-term national interests.
Should the bill pass, it could significantly reshape how Ghana plans, approves, and spends its public finances — potentially delivering a new era of discipline in national development planning.
