COLLEG
E OF BUSINESS AND MANAGEMENT SCIEN
SCHOOL OF BUSINESS
STUDENT'S NAME: BEYONGYERA LYNN
REGISTRATION NUMBER: 24/10/04347/PS
STUDENTS NUMBER: 2400704347
PROGRAMME: BACHELOR OF BUSINESS ADMINISTRATION
COURSE UNIT: ELEMENT OF TAXATION
COURSE CODE: COB2101
The fiscal foundation of government
The fiscal foundation of the government refers to the basic structures, principles and institutions
through which the government raise, manages, allocates, and accounts for public funds in order
to deliver services and promote economic stability.
The key elements of the fiscal foundation of the government are; the constitution, the acts of
parliament, Ministry of finance, planning and economic development, central bank, auditor
general, Accountant general.
The constitution
The constitution provides the basic legal and institutional frame work for how public money is
raised and spent. That is it sets ground rules for government finance and ensures accountability
in use of public resources.
Its main aspects are;
It has the power to tax and raise revenue this is through granting the government authority to
impose taxes, fees and duties and it also has power to define which level of government has
power to collect certain taxes
It has the power to spend and this is through authorisation of the government to use public funds
for national development and service delivery and more so public expenditure has to be approved
by the parliament
The constitution provides checks balances because institutions like auditor general, are usually
provided for in the constitution to audit government accounts and also parliamentary committees
like the public Accounts Committee are mandated to oversee the use of public funds.
The constitution sets principles that help in accountability and transparency this is through
principles like openness, accountability and prudence in the use of public resources which
facilitate public finance management.
The acts of parliament
This basically means the legal and institutional basis through which laws passed by the
parliament, provide frame work for government to raise, allocate, and use public funds in
managing the economy .It does the following,
It does the thee oversight role through acts that is it provides sanctions for misuse of funds or tax
evasion and acts of parliament empower the oversight institutions for example auditor general
and the Parliamentary Public Accounts Committees to ensure public funds are used legally and
efficiently by providing sanctions for misuse of funds and tax evasion
It acts as a link to fiscal policy because trough acts of parliament, government fiscal policy of
taxation, expenditure, borrowing, is given legal force, thus ensuring accountability in use of tax
payer’s money and alignment with national development goals.
The constitution provides authority to the parliament to make laws on taxation and borrowing,
budgeting and spending thus making the acts of parliament the primary instruments for
operationalizing fiscal policy.
The Central bank.
Its fiscal foundation refers to the legal, institutional and financial basis that empowers central
bank to operate and support government fiscal policy while maintaining monetary stability. This
is through,
It plays a role in fiscal policy where by it manages public debts by issuing, servicing, and
redeeming government [Link] also finances the government short falls by offering
temporary advances to government.
It ensures revenue mobilisation and management this is through facilitating government
financing by conducting open market operations and auctioning securities, providing secure
accounts for government revenues and expenditures.
It safe guards macroeconomics stability through inflation control and stabilizes currency value,
which strengthens the government’s fiscal credibility and supports a stable environment for tax
and economic growth.
It conducts accountability and oversight to all audits by the auditor general and over sight of
parliament and this ensures transparency in managing government’s fiscal policy.
The ministry of finance.
Its fiscal foundation refers to the role it plays in establishing managing and safe guarding the
governments financial system so that the state can effectively collect ,allocate, and use public
resources .this is through,
It conducts budget formulation and allocation that is it prepares the national budget and allocates
resources to ministries, departments and agencies and balances between development
expenditure like infrastructure and health and all the recurrent expenditure.
It ensures revenue mobilization through design of tax policies and non-tax revenue measures and
ensure effective tax collection systems through agencies like the Revenue Authority.
It ensures expenditure control through monitoring how funds are collected and spent thus
enforcing efficiency and accountability in government spending preventing waste and
corruption.
It helps in public debt management through regulating borrowing and ensuring sustainability to
avoid excessive fiscal burdens.
It ensures fiscal transparency and accountability by strengthening institutions like the auditor
general and parliament oversights by publishing budget reports and fiscal data to the public
implementing anti-corruption measures in financial management.
Auditor general
The fiscal foundation of the auditor general refers to the principles and functions that enable the
office of the auditor general to ensure accountability, transparency and property use.
This is through over sight of revenue and expenditure by examining how public money is
collected and whether it aligns with approved laws and policies. It also reveals if government
spending follows the budget approved by the parliament checking whether funds are used
economically, efficiently and effectively.
It ensures accountability and transparency by producing audit reports that are submitted to the
parliament and made public and this strengthens citizens trust and public management.
It enables performance and value for money audits by going beyond compliance audits to check
if resources achieve intended results by evaluating efficiency of government programmes,
projects and investments
It aids in the over sight of fiscal discipline by serving as a cheque on ministry of finance and
other spending agencies ensuring that no funds are spent without legal authority promoting
prudent fiscal management across government institutions.
Accountant general
The fiscal foundation of accountant general is the frame work of principles and function that
enable the office of the auditor general to ensure accountability, transparency and property use of
public resources.
The roles of the accountant general;
The accountant general ensures revenue and expenditure over sight by examining how public
money is collected and whether it aligns with approved laws and policies by reviewing if
government spending follows the budget approved by the parliament.
The accountant general ensures public debt and fiscal risk auditing by auditing government loan
guarantees and debt servicing ensuring debts are contracted legally and remain sustainable.
Inspector General of Government (IGG)
The fiscal foundation of IGG relates to how this office ensures integrity, accountability and
proper use of public recourses in government institutions.
The key elements of the fiscal foundation of the Inspector General of Government (IGG) are;
inspector General of Government (IGG) ensures anti-corruption oversight through investigation
and prosecutes public officers who embezzle misappropriate or misuse of public funds and
ensures that funs released by ministry of finance are used for intended purposes and this deters
fiscal leakages that undermine service delivery.
Inspector General of Government (IGG) ensures enforcement of accountability by reviewing
financial practices in ministries, agencies and local government. He compels officials to explain
or recover misused public funds.
Inspector General of Government (IGG) promotes transparency and integrity by requiring public
officials to declare wealth and assists to prevent illicit enrichment and also monitors conflicts of
interest and unethical financial dealings thus building confidence in the fairness and honesty of
the government.
inspector General of Government (IGG) ensures fiscal discipline and good governance by acting
as a safeguard to ensure national resources are protected from corruption and misuse which is
through working with the auditor general and accountant general to uphold fiscal discipline.
Inspector General of Government (IGG) establishes a legal and institution mandate through the
constitution and the inspectorate of government act by putting an independent authority to
investigate, arrest and prosecute cases of corruption, abuse of office or misuse of public funds
and this puts fiscal discipline in public offices.
