Role of the Central Government in the Financing of Public Institutions
It is their task, specifically, to submit programmes which correctly interpret government policy and ideology and which are based on a proposed budget for approval by Parliament (The Legislature). All members of the cabinet are individually and also collectively responsible for all the activities – especially those concerning finance – of the cabinet.
Most authorities of public finance agree that a budget should be regarded as: A statement of intent
reflecting the ideology of the ruling party A work programme A source of information A means of promoting
it should indicate how that department intends providing public services
exactly which and how many services will be provided; previous budgets serve also as a record
the budget is oſten used as reference when mismanagement accountability occurs or suspected
An instrument of control departments can gauge how much or how little to spend on any programme
We will expand on this in Module 6.
The Administrative Authority can do little until there is 1. a policy statement, and 2. a work programme. The Executive Authority communicates the policies of the government that need to be reflected in the budget to the administrative authority. This is done personally by ministers who are in close contact with the Accounting Officers in their administration, and also by way of what is called white papers.
White papers are official documents that reflect policy, especially when it comes to a new direction in government. These white papers are drafted to inform all parties involved in the preparation of a budget. These white papers are most important and failing to publish them may result in the administrative authority preparing a budget which does not reflect a new direction the government wishes to take in providing public services to its voters.
Provincial Level The Members of the Executive Council (MEC) are appointed by the Premier in terms of section 132 of the Constitution Act 108 of 1996. The executive council consists of the Premier as head of the council and no less than five and no more than ten members appointed by the Premier. In much the same way as ministers of the cabinet are appointed at central government level, the Premier assigns responsibilities to the executive council.
Members of the executive council must act in accordance with the constitution and, if a provincial constitution has been passed for the province, also in accordance with that constitution and must provide The Legislature with full and regular reports concerning matters under their control.
A political officer-bearer or appointed official is required to administer a portfolio much in same manner as a member of the cabinet. We thus speak of an MEC of finance on a provincial level, as much as we speak of a minister of finance on a national level. Please note that he/she does not, however, enjoy nearly the same powers as the Minister of Finance.
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