Lawmaking is the primary role of Ghana’s Parliament. The laws they pass are called Acts of Parliament and are the second-highest laws of the land, after the Constitution.
They can be declared void by the Supreme Court where the constitutionally laid-down procedures are not followed or where they conflict with the provisions of the Constitution.
The laws passed by Parliament have a direct or indirect impact on our daily lives. They affect us in our peace of mind, businesses, finances, properties, rights, and liberties. As holders of the sovereign will of the State, it is essential that we not only elect competent persons to exercise legislative authority on our behalf but also stay informed about the law-making process and ensure compliance.
Financial laws, in particular, play a crucial role in our lives, as they impose, alter, or repeal taxes, authorize government spending, and provide a framework for managing public revenue, expenses, debt, and more. In today’s volatile economy, financial laws are of paramount importance, as they can make or break our businesses. No one wants to spend their hard-earned money on unnecessary taxes or get bogged down by rules that stifle growth.
The processes by which these laws are passed are provided largely under Article 106 of the Constitution of Ghana, 1992, and the same are re-echoed extensively under Part 18 of the Standing Orders of Parliament. They include the following:
a) Presentation of a Bill/First Reading
All laws start as bills, which are proposed legislation introduced in Parliament. By article 108 of the 1992 Constitution, a financial bill can only be introduced in Parliament by or on behalf of the President. Unlike other bills, there is no constitutional requirement for publication in the gazette for a financial bill.
However, to keep the public in the loop, order 124 of the Standing Orders of Parliament require the bill to be published within 24 hours or as soon as practicable after introduction, where it was not previously published in the gazette. This introduction is also known as the First Reading, during which the Speaker reads the long title of the bill and refers it to the Finance Committee or the relevant Committee of Parliament.
b) Deliberations in Parliament: Second and third readings
Second Reading
The Finance Committee deliberates on the principles and policies of the bill and produces a report for the House. During this stage, the public is generally allowed to submit their memoranda, which will be considered by the Committee. The bill is read a second time, and a full debate is held based on the Committee’s report.
The bill then undergoes a Consideration Stage, where it is discussed clause by clause, and all concerns are debated and voted upon. The Speaker states each clause, and members note their questions and concerns. However, Parliament cannot propose amendments to the financial bill; it can only formally speak or vote for or against the bill.
Third Reading
The final stage is the third reading, where a member can still propose rejection. If no rejection is proposed, the Clerk reads the Long Title aloud, and the bill is deemed passed by Parliament, as provided for by Order 131 of the Standing Orders of Parliament.
c) Exercise of Presidential Power of Assent
After successful deliberations, the President is presented with the bill and is required to assent to it. Ordinarily, the President has discretion in the exercise of this power, but for financial bills, the discretion is whittled away by Article 106 (12) of the Constitution.
The giving of Presidential assent is, in the case of financial bills, a duty to which the President has to perform within seven (7) days after the presentation of the bill to him. The Presidential assent gives the bill the status of law.
d) Publication in the Gazette and Commencement
Under Article 106 (11) of the Constitution, a bill duly passed and assented to is not enough for it to have the force of law; it must be published in the Gazette to ensure citizens have sufficient notice of the new law. Often, the Act specifies a date for operation; if not, it takes effect immediately after publication. Parliament can also postpone the operation of the law until a specified time.
The legislative process of Ghana is robust and effective. However, there is always room for improvement. To truly ensure public participation in legislation, it would be desirable if bills were presented in simple, easy-to-understand language. This way, citizens can effectively advocate for their concerns and ensure that the financial laws passed are not threats to their businesses.
The authority to enact effective legislation resides with the people, and through collective effort, we can forge a brighter future for Ghana.
Alhassan Aboagye on behalf of OSD & Partners
