Kojo Oppong Nkrumah, Member of Parliament for Ofoase Ayirebi, has introduced a Private Member’s Bill in Parliament aimed at overhauling Ghana’s public financial management framework.
The proposed legislation, titled the Public Financial Management (Amendment) Act, 2025, seeks to amend Section 17 of the current Public Financial Management Act, 2016 (Act 921). The bill would make it mandatory for all Ministries, Departments, and Agencies (MDAs) to obtain formal certification from the National Development Planning Commission (NDPC) for their development plans before receiving any public funds—including Internally Generated Funds (IGFs).
“It’s time to instill order and discipline in how public resources are planned and spent,” Oppong Nkrumah said in an interview.
He added that the lack of alignment between agency spending and national development priorities has resulted in waste, inefficiency, and fragmented planning across government.
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Oppong Nkrumah’s Bill Proposes Strict Fiscal Reforms to Tie Public Spending to National Development Plans
Member of Parliament for Ofoase Ayirebi, Kojo Oppong Nkrumah, has detailed the provisions of his Private Member’s Bill—the Public Financial Management (Amendment) Act, 2025—which seeks to enforce discipline and strategic alignment in public spending by linking all government expenditure to certified development plans.
The proposed amendment to Section 17 of the existing Public Financial Management Act (Act 921) introduces three major reforms:
- Mandatory NDPC Certification
The Finance Minister would be legally barred from approving, releasing, or authorizing any expenditure—whether from the Consolidated Fund or other public resources—without verified evidence that the relevant Ministry, Department, or Agency (MDA)’s development plan aligns with the National Development Planning Commission (NDPC)‘s framework. - Restrictions on IGF Usage
MDAs would also be prohibited from spending Internally Generated Funds (IGFs) unless their plans have been vetted and approved by the NDPC. - Sanctions for Non-Compliance
Public officers who authorize expenditures without meeting these conditions would face administrative sanctions under Section 98 of the principal Act. These violations would be classified as breaches of public financial law.
“We’re not creating bottlenecks,” Oppong Nkrumah explained. “We’re simply ensuring that every cedi spent—whether from the Consolidated Fund or IGFs—is aligned with national priorities and delivers real value.”
He noted that although Section 21 of the current Act already requires that budgets be linked to approved development plans, compliance has been weak due to a lack of enforcement mechanisms.
“Right now, there’s no real consequence for bypassing the NDPC. This amendment gives the Commission the legal authority to enforce its mandate,” he added.
The bill is rooted in what its explanatory memorandum describes as a “recurring phenomenon” where MDAs receive state funding—or spend IGFs—without any certified development plan, resulting in duplication of projects, lack of coordination, and inefficient resource allocation.
Oppong Nkrumah emphasized the non-partisan nature of the proposal, saying:
“This is not about politics. It’s about protecting the public purse and ensuring that public spending contributes meaningfully to Ghana’s long-term development goals.”
He concluded:
“This legislation ensures national planning is not an afterthought, but a precondition for funding.”
The MP has officially filed the proposed bill with the Office of the Clerk to Parliament, and it is expected to go through the necessary parliamentary procedures, including debate and possible committee review. If passed, it would mark a significant step forward in Ghana’s pursuit of fiscal discipline and strategic planning.
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