Roles of Finance Minister
This is a department of Civil Service in a country that is responsible for the record-keeping and analysis of government revenue and government expenditure. The Ministry of Finance is headed by the Finance Minister which is one of the senior official cabinets in a state or a country.
The role of a Finance Minister is to coordinate the finance ministry and also ensure the transparency operation and operates inefficient and accountable manner to support the development of the country’s economy. The permanent secretary assists the minister in carrying out his or her role in the ministry of finance.
Duties of the Minister in the Ministry of Finance
- Annual budget preparation
- Fiscal policies
- Foreign exchange management
- Government revenue
- Allocation of revenue
- Tax regulations
- Validation of currency
- Annual budget preparation:- One of the major works done in the ministry of finance is 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 the 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 Finance Minister.
- Foreign exchange management:- The foreign exchange between two countries or more countries is managed by the Ministry of Finance. The foreign exchange has helped in developing the government and this is being managed and is being managed by the federal ministry of finance.
READ: Department of finance
- 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 these 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 nobody or agency that would see to how the government revenue would be allocated to every other government agency. The Ministry of finance shares the government revenue for every agency according to their power and seniority, and rank in the government tasking
- Tax regulators:- Finance Minister plays important role in tax regulations. Tax is the amount of money charged or levied on individuals or public or goods services. 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, the body works under the Ministry of Finance and the allocation of tax to different sectors that are needed. E.g. there is the 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 in 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, can deploy a measure of inflation in which the number 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.
READ: Financing statement
They see to the regulation of insurance industries. Insurance is used as an indemnity against uncertainty in the future. This body which sees to the protection of risk is also regulated by the ministry of finance.
The Ministry of finance mobilizes both the external financial resources and the domestic financial resources for the purpose of developing the nation.