Finance minister – Definition, functions, Role, Duties, power,
This is a department of civil service in a country which is responsible for the record keeping and analysis of government revenue and government expenditure. The ministry of finance is headed by minister of finance which is one of the senior official cabinet in a state or a country.
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The function of the minister for finance is to coordinate the finance ministry and also ensure the transparency operation and operates in efficient and accountable manner to support the development of the country’s economy. The permanent secretary assist the minister in carrying out his or her role in the ministry of finance.
Duties of minister in ministry of finance
- Annual budget preparation. One of the major work done in ministry of finance by the finance ministry to prepare the annual budget and estimate the government revenue and the government expenditure. They see to how the government money is to be spent and they must be accountable to the public. They prepare the budget and make a review on the budget if needed before being passed to the house of representatives by the president
- Fiscal policies. They determine the fiscal policies which should be used by government in solving any economic problem in the country. Problems like unemployment, deflation, inflation and many more are set to be solved by the use of fiscal policies determined by the ministry of finance.
- Foreign exchange management. The foreign exchange between two countries or more countries are managed by the ministry of finance. The foreign exchange has helped in developing the government and this is being managed and this is being managed by the federal ministry of finance.
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- Government revenue. The government revenue is being managed by the ministry of finance. Government revenue is the amount of income accrues to the federal government from an investment or bond sold out to the public and external bodies. All this revenues need management so that it will be accounted on how it will be used efficiently and this management is done by the ministry of finance under the supervision of the minister for finance
- Allocation of revenue. There are many cases when money would be needed by the federal government and also in the payment of salary to the civil servants, the finance minister, allocate and distribute the revenue accordingly to what is needed for. The revenue is meant to be used in the development of the country and up keeping of the public and this would not be properly done if there is no body or agency that would see to how the government revenue would be allocated to every other government agencies. Ministry of finance, shares the government revenue for every agencies according to their power and seniority and rank in the government tasking
- Tax regulators. Tax is the amount of money charged or levied on individuals or public or goods service. This tax is a must and must be paid either directly or indirectly to the government. Although there are bodies that see to the tax, but the body works under ministry of finance and the ministry of finance see to the allocation of tax to different sectors that is needed. E.g. there is tariff, government duties, direct tax, and indirect tax. The tax is used in the development of the government and also in the payment of salaries as the case of Nigeria.
- Valuation of currency. The value of currency or actuation of value to currency is determined by the ministry of finance. The ministry of finance, in other to give value to currency, they can deploy a measure of inflation in which the amount of goods and services to be bought will be small compare to the amount of value at hand and they can also decide to reduce the value of money with the use of deflation by using small money to buy plenty or more goods and services than it can buy.
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- They see to the regulation of insurance industries. Insurance is used as indemnity against uncertainty in the future. This body which sees to the protection of risk is also regulated by the ministry of finance.
- Ministry of finance mobilizes both the external financial resources and the domestic financial resources to the purpose of developing the nation.