Parliament passes Public Finances Bill

The National National

PARLIAMENT yesterday passed the Public Finances (Management) Amendment Bill, regarded the most important reform to the management of public finances in the country.
The bill was unanimously passed 70-0 to replace the Public Finances Management Act of 1995.
Finance Minister James Marape said “we are doing a very holistic approach to the (existing) approach to the act itself and bring it up to speed with current needs”.
He told The National that the legislation was last amended in 1995.
“A comprehensive review of the Public Finance Management Act has now allowed us to go forward in terms of the expanded scope of procurement, the need for compliance and prudent management of our public finances, and to separate the roles of Finance and Treasury,” he said.
“This Government is serious about improving the public financial management system to build robust, transparent and good governance practices in managing public money and public resources.”
Features of the bill include:

  • The separation of Treasury and Finance. Treasury concentrates on macro-economic control and oversight, including the national budget, State loans and guarantees. Finance is the fiscal implementing agency of the national budget;
  • Amendments to public and statutory bodies;
  • Amendments to the fiscal year to start on July 1 and ends on June 30 the following year;
  • Amendments to roles and responsibilities of Finance and Treasury;
  • Amendments to powers of inspection;
  • Amendments to fees and charges;
  • Amendments on the review and approval of statutory bodies; and,
  • Amendments on penalties for non-compliance.