Public Procurement and Fiscal Discipline: An Evaluation of Ghana’s Public Financial Management System

Abstract

Public Procurement is an integral part of governments’ fiscal policies aimed at achieving prudent public financial management through its intended effects (indicators). Concerns are that procurement currently does not achieve its intended objective. For this reason, the study examined the intended effects of public procurement on public financial management in Ghana. The objectives of the study are (1) to identify the intended effects of public procurement on prudent public financial management; (2) to identify the effects of implementation of Public Procurement on public financial management; and (3) to identify the challenges associated with procurement process that make it impossible to manage public finance in Ghana prudently. A quantitative research method was adopted for the study, and with a sample size of 68, 68 questionnaires were administered, and 46 were retrieved, indicating a response rate of 67.65%. Data collected was analysed with SPSS, and descriptive statistics were used. The significant findings identified included transparency, planning and budgeting, controls, competition and procurement audit with prudent public financial management. Abuse of the procurement law was seen as an implementation effect of procurement. Mismatched annual procurement plans and budgets, political interference and bureaucracy are the challenges associated with the procurement process. These findings imply that a fundamental problem with the public procurement system needs urgent attention. Effective planning, budgeting, transparency, and controls should be ensured. Anti-corruption measures should be enhanced and promoted in this direction.