By DARLINGTON CHILUBATHErelevance of the finance function at government level has both practical and philosophical reasons. The philosophical reasons acknowledge the power of finance and the need for government to exercise authority over the economy through policy or political structures for positive social or socio-economic impact. This philosophical debate involves resource distribution: that is, which sectors qualify as lead sectors and which qualify as support sectors and in need of welfare or subsidies; secondly, which channels should government use to allocate resources: in other words, does government dispense resources?Does the private sector, or can a mix of both deliver better? In summary, the main question is whether government adopts a centralised or command system of distribution over a deregulated or liberalised mode of resource allocation? In most countries, the Ministry of Finance or its equivalent, is the deliberate manifestation of law which puts into practice the ideological beliefs of that government. This is to say, the law […]
PUBLIC FINANCE PART 2: GOVERNMENT MANDATE
