Fiscal responsibility Act (FRA) and its implications on the performance of public sector accountants

Abstract

This study assessed Fiscal Responsibility Act (FRA) and its implications on the performance of public sector accountants. It enunciated the challenges which led to the enactment of FRA, some of which are mismanagement of oil windfalls, existence of poor savings culture, a badly fragmented budgetary system and poor accountability. It considered the effect of Fiscal Responsibility Act on the budgetary role performed by the public sector accountants. It also evaluated accountability and transparency in the profession, in relation to the Fiscal Responsibility Act.

A structured questionnaire was used to gather data from 104 public sector accountants in the Federal ministries and institution in Ibadan metropolis as regards their perception of the FRA provisions on their budgetary roles. The findings revealed that the financial projections put in place in the Medium Term Expenditure Framework (MTEF) by FRA have aided budget preparation, implementation and monitoring. Oil prices and tax revenue projections were also less than accurate and public debts were not effectively managed. This study contributes to the literature, providing empirical information on FRA and its implications on the performance of public sector accountants. It recommended that funds should be monitored to ensure that that they are used for the purpose for which they are disbursed. Other tiers of government should also be made to enact and enforce the implementation of FRA.