Article 198. Principles relating to public finance
The guiding principles of public finance include the following:
transparency and accountability in the development or formulation of macro-economic frameworks, socio-economic plans and the budget;
promotion of a public finance system that ensures that—
the burden of taxation is shared fairly;
revenue raised nationally is shared equitably among the different levels of government; and
expenditure promotes the equitable development of the country;
sustainable public borrowing to ensure inter-generational equity; and
prudent and responsible use of public resources.
Article 199. Imposition of tax
A tax shall not be imposed, except as prescribed.
Where legislation confers power on a person or an authority to waive or vary a prescribed tax the power shall be exercised through a statutory instrument.
A report explaining the waiver or variation of a tax shall be submitted to the National Assembly within twenty-one days of the publication of the statutory instrument.
Article 200. Consolidated Fund
There is established a Consolidated Fund to which shall be credited the revenues and other monies accruing to the Treasury.
Clause (1) does not apply to monies—
prescribed for a public fund established for a specific purpose; or
that a State organ or State institution may retain for the purpose of defraying the expenses of the State organ or State institution, as prescribed.
Article 201. Withdrawal from Consolidated Fund
Monies shall not be withdrawn from the Consolidated Fund except—
to meet expenditure charged on the Consolidated Fund by this Constitution or as prescribed; or
where the issuance of those monies has been authorised by a warrant signed by the President, an Appropriation Act or a Supplementary Appropriation Act in accordance with Article 203.
The investment or lending of monies forming part of the Consolidated Fund, in accordance with Articles 206 and 207, respectively, shall not be considered a withdrawal from the Consolidated Fund.
Article 202. Annual financial estimates of revenue and expenditure
The Minister responsible for finance shall prepare and lay before the National Assembly in each financial year, not later than ninety days before the commencement of the next financial year, estimates of revenue and expenditure for the Republic.
The Minister responsible for finance shall, when presenting the estimates of revenue and expenditure, in accordance with clause (1), specify the maximum limits that the Government intends to borrow or lend in that financial year.
In a year where a general election is held, the Minister responsible for finance shall cause to be prepared and laid before the National Assembly, within ninety days of the swearing in of the President, estimates of revenue and expenditure for the Republic for the next financial year.
The National Assembly may vary estimates of revenue and expenditure but shall not amend the total amount of estimates of revenue and expenditure.
The National Assembly shall, by a resolution of the Members of Parliament, approve the financial estimates of revenue and expenditure for the next financial year.
Where estimates of revenue and expenditure have been approved by the National Assembly in accordance with Article 202, the Minister responsible for finance shall lay, before the National Assembly for enactment, an Appropriation Bill in respect of the approved estimates of expenditure.
The Minister responsible for finance shall, where the amount appropriated in an AppropriationAct for a financial year is insufficient to meet expenditure in that financial year, lay before the National Assembly for approval, in accordance with Article 202 (5), a supplementary estimate of expenditure.
Where a supplementary estimate of expenditure has been approved by the National Assembly, the Minister responsible for finance shall lay, before the National Assembly for enactment, a Supplementary Appropriation Bill in respect of the approved supplementary estimate of expenditure.
Where there is an urgent need to incur expenditure for a purpose that has not been appropriated under the Appropriation Act for that financial year and it would not be in the public interest to delay the appropriation of the expenditure until a supplementary estimate is approved by the National Assembly, in accordance with clauses (2) and (3), the President may, subject to Article 204, issue a warrant authorising the expenditure and withdrawal from the Consolidated Fund.
The Minister responsible for finance shall present the warrant referred to in clause (4) to the relevant parliamentary committee for approval.
The parliamentary committee shall consider the warrant within forty-eight hours of its presentation by the Minister responsible for finance.
Where expenditure is incurred in accordance with clause (4), the Minister responsible for finance shall, in that financial year, lay an Excess Expenditure Appropriation Bill before the National Assembly for enactment.
Where it is not practicable to lay an Excess Expenditure Appropriation Bill before the National Assembly, in accordance with clause (7), the Minister responsible for finance shall lay the Excess Expenditure Appropriation Bill before the National Assembly during the first sitting of the National Assembly after the end of the preceding financial year.
Article 204. Limitation and conditions of warrant
The issuance of a warrant, in accordance with Article 203 (4), shall be subject to limitations and conditions, as prescribed.
The President shall, immediately after signing a warrant in accordance with Article 203 (4), cause a copy of the warrant to be transmitted to the Auditor-General and Parliament.
Article 205. Budget and planning legislation
The following shall be prescribed:
the financial management and regulation of public funds;
the preparation of medium and long-term financing frameworks and development plans;
the budget preparation process;
public participation, at all levels of government, in the formulation of financing frameworks, development plans and preparation of annual budgets;
the content of the financial report of the Republic provided for in Article 211; and
the control and disbursement of appropriated funds.
Article 206. Investment of public funds
Monies forming part of the Consolidated Fund may be invested into readily marketable securities and deposits or other secure investments, with a financial institution approved by the Minister responsible for finance.
The investment of monies made in accordance with clause (1) shall be prescribed.
Article 207. Borrowing and lending by Government
The Government may, as prescribed—
raise a loan or grant on behalf of itself, a State organ, State institution or other institution;
guarantee a loan on behalf of a State organ, State institution or other institution; or
enter into an agreement to give a loan or grant out of the Consolidated Fund, other public fund or public account.
Legislation enacted under clause (1) shall provide—
for the category, nature and other terms and conditions of a loan, grant or guarantee, that will require the approval by the National Assembly before the loan, grant or guarantee is executed; and
that any monies received in respect of a loan or grant approved by the National Assembly shall be paid into the Consolidated Fund, or other public fund or public account.
Article 208. Public debt
A public debt shall be a charge on the Consolidated Fund or other public fund.
For the purposes of this Article, “public debt” includes the interest on that debt, sinking fund payments in respect of that debt and the costs, charges and expenses incidental to the management of that debt.
Article 209. Compensation Fund
There is established a Compensation Fund for the purpose of settling claims against the State.
The management of the Compensation Fund shall be prescribed.
Article 210. Public procurement and disposal of State assets
A State organ, State institution and other public office shall procure goods or services, in accordance with a system that is fair, equitable, transparent, competitive and cost-effective, as prescribed.
A major State asset shall be sold, transferred or otherwise disposed of, as prescribed, subject to the approval of the National Assembly signified by a vote of at least two-thirds of the Members of Parliament.
For the purposes of this Article, “major State asset” includes a parastatal and equity held by the Government, as prescribed.
Article 211. Financial report of Republic
The Minister responsible for finance shall, within three months after the end of each financial year, prepare and submit to the Auditor-General the financial report of the Republic in respect of the preceding financial year.
The Auditor-General shall, within two months of receipt of the financial report, examine the financial report and express an opinion on the report.
The Minister responsible for finance shall, within one month after the receipt of the Auditor-General’s opinion, lay the financial report, with the Auditor-General’s opinion, before the National Assembly.
The financial report shall include information on—
revenue received by the Republic during that financial year;
the expenditure of the Republic during that financial year;
gifts, donations and aid-in-kind received on behalf of the Republic in that financial year, their value and how they were disposed of;
debt repayments;
payments made in that financial year for purposes other than expenditure;
the financial position of the Republic at the end of that financial year; and
other information as prescribed.
Article 212. Auditor-General’s report
The Auditor-General shall, not later than nine months after the end of a financial year, submit an audit report to the President and the National Assembly, on the accounts of the Republic audited in respect of the preceding financial year.
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