The following few paragraphs may sound rather simplistic when compared to the real world but in theory this is a synopsis of the role of a Minister of Finance. The Minister of Finance is an integral constituent of any government cabinet and operates at the helm of the ministry of finance. Among the numerous responsibilities of the office, the minister advises the head of the government; manages the budget, taxes, and funding for programs; addresses domestic economic growth and policy; and handles international financial matters. Other titles for the position might be Finance Minister, Secretary of the Treasury, Chancellor of Exchequer, or Financial Secretary. Every country has someone in this position, no matter what the title is. This position is always of vital importance. A countrys living standard is closely linked to decisions made or recommended by the Minister of Finance. One of the ministers core priorities is the governments budget, which is typically comprised of two things: revenue and spending. This is called fiscal policy. Fiscal policy affects interest rates, bank regulations, unemployment, operation of private businesses, and inflation of currency. Apart from donor support and borrowing, taxes are the main source of revenue for most third world governments, but there are multiple avenues for spending. If a government is to have lower taxes, it must eliminate some government programs, reduce salaries, and curb its standards of operation. A government that wants to enhance programs must raise taxes or other fees. The Minister of Finance has to find a balance, funding necessary programs while minimizing the burden on the taxpayer. Occasionally, this position makes him or her unpopular, but his or her decisions affect all citizens of the country. The actual power of the office varies from country to country. Some countries might leave the ultimate decisions up to the head of the government or to the legislative body, and others allow the minister to enforce decisions. Most countries tend to mix it up and have a combination of all three available options. When the government does hold public funds that are not considered taxes, the Minister of Finance acts as the trustee of the funds. When the government pension fund rolls out, it will be funded by working citizens but their contributions are not technically considered taxes. All welfare programs are sponsored by tax paying citizens. The minister acts as the trustee of these programs, ensuring that they are properly maintained. If the government is to effectively and efficiently execute its role in business by using taxpayer money to fund organizations such as healthcare facilities, schools, and financial institutions, the Finance Minister has a great deal of power. He or she might be second only to the head of state. END NOTE I welcome our new Minister of Finance and do sincerely hope that he will build on the successes (if any) of his predecessors and learn from their shortfalls (there must be many). It will not be easy. People will talk. People will taunt. People will interfere. My singular advice is for him to remain focused Bwana Mkwezalamba, I support you as you embark on your new journey and strive for excellence and incorruptibility. Question: How many of the old Finance Ministers stuck to their job descriptions and excelled? Who among them would you rate as your best/worst and why?
Posted on: Thu, 24 Oct 2013 09:49:30 +0000
Trending Topics
Recently Viewed Topics
© 2015