Important Roles of the Minister of Finance

A minister of finance is a government official who oversees a state’s monetary and financial matters. The minister also develops the annual budget. They must deliver the annual budget speech to the nation. The following are some of the important roles of the minister of finance.

Work Experience

To become a minister of finance, candidates should have the appropriate work experience for the country they intend to serve in. Typically, a potential minister of finance should have worked in the private sector or a related field. For instance, according to the former minister of finance of the Dominican Republic, the role of the minister of finance is a high-profile one, and candidates must be able to maintain their reputations as leaders.

Political capital

Political capital is one of the key qualifications for becoming a minister of finance. This is because this position carries a lot of power and responsibility. Those who do not have political capital may find it difficult to make the transition into the role. Therefore, knowing how to use political capital effectively in government is important.

Political capital can be defined as an influence in setting policies. It is built through seniority, experience, and leadership position. Another type is reputational capital, which is associated with a politician’s credibility among the public.

Education

A minister of finance has an important role in ensuring children’s education quality. Usually, the primary funding source for education is government, but the role of local councils is also important.

Education is one of the most critical sectors of the economy, and government must play a leading role in ensuring that it continues to be funded. In addition, higher education is an industry that has a direct and indirect effect on the economic prosperity of a nation. Therefore, by regulating the aims and direction of higher education, the government is able to contribute to the development of the country.

Background

A minister of finance’s duties and responsibilities are different in every nation. But, typically, a minister’s position comes with great responsibility and political capital. Consequently, candidates should have the political capital necessary to succeed. This can be gained in many ways, including personal relationships with important political figures, a proven track record in service, and a long family history of leadership in the political system.

The education of a minister of finance is crucial for the position, so it’s important to select someone with a high level of academic achievement.

Institutional Coordination

There are several reasons to question the value of institutional coordination. The most important reason is the need for specialization. Governments create ministries focusing on particular policy issues. In addition, new Public Management reforms have further broken down governments into more specialized agencies. However, too much focus on coordination can undermine the benefits of specialization.

Ministers are subject to intense scrutiny from the media and parliamentary benches, requiring an even greater degree of institutional coordination. It is, therefore, essential for them to maintain informal contacts to keep things moving. Deputy prime ministers and senior officers who work for the ministerial leadership are vital to maintaining effective coordination.