Relations with the Parliament

07 Apr, 2017

Honourable Calixte NGANONGO tables the draft budget framework law on finance Act for review by the economic and finance committees of the two chambers of Parliament

 

On April 7, 2017, the Minister of finance, budget and public portfolio introduced the draft budget framework law before the economic and finance committees of the senate and the national assem-bly, represented respectively by their chairmen, Mr.Grégoire Epouma and Mr.Maurice Mavoungou.

 

The draft was introduced for review and adoption, but the Minister of finance said before that it was necessary to get the opinion of the members of the committees. The fact is that Members of parliament's duty is not only to vote for and to supervise government action, but their duty is also to advise.

 

A draft law taking into account a directive from CEMAC

 

 The draft « budget framework law on finance act » originates from CEMAC (Communauté économique et monétaire d’Afrique centrale) directive N°1, December 2011on harmonised communauty measures in the field of finance. In accordance with the transposition process of the texts of the Community, the draft was approved by CEMAC on October 1, 2016.

According to honourable Calixte NGANONGO - « the draft corrects the weaknesses of the existing budget framework law on the state financial system, September 03, 2012 (LORFE). The draft also contains new elements and advantages».

 

Weaknesses

About a dozen weaknesses of the law (LORFE) of 2012 has been reported to the members of parliament, particularly the following aspects : pluriannual budgetary planning ; absence of the principle of a short term sustainability of public finance ; absence of a short term budgetary framework (CBMT) and of short term expenditure frameworks (CDMT) ; absence of orientation debate ; lack of clarity of the principle of virtuous chaining of the law on payment, and rules of budgetization of funds from lenders are not precise .

The other weaknesses are : the imprecision surrounding the assignments of the officer in charge of programs and the way he is appointed ; existing laws do not forbid new tax levies ; incomplete list of offences related to management ; non taking into account of modulation of supervision by budget controllers for the risk they may face as they have to supervise expenditures ; lack of a provision on the caapacity of the minister of finance to sign financing agreements entered into with development partners.

 

New elements found in the draft

As far as new elements are concerned, it is worth mentioning those already contained in the law (LORFE of 2012) on the management of budget on the basis of the following elements : programs ans allocations ; deconcentration of payment authorization (whereas the minister of finance remains the main chief authorizing officer as regard state revenues) and the need to have accrual-based accounting ;

 

A DRAFT IN HARMONY WITH THE CONSTITUTION

Honourable Calixte NGANONGO mentioned that the draft on budget and framework law relating to finance act was now in conformity with the constitution of 2015, particularly with the taking into account of the Prime Minister, Head of government.

 

« The Prime Minister gets involved in the implementation of finance act by signing decrees upon the proposal of the Minister of finance. Under the authority of the Prime Minister , the Minister of finance decides on expenditures and revenues for which there has been no agreement between the ministers. Finally, under the same authority, the drafts on finance act are defended by the Minister of finance alon with the other ministers concerned » honourable Calixte NGANONGO said . He invited the members of Parliament to work with his assistants until the adoption of the draft.

 

 

Bazin M’BOUNGOU

Category:NEWS
Sub Category:THE MINISTER