2011年-世界发展银行全球_Ghana_-_Joint_Review_of_Public_Expenditure_and_Financial_Management_77页_2mb

Summary of the Joint Review of Public Expenditure and Financial Management in Ghana (October 2011)

Core Content

This document presents a comprehensive review of Ghana's public expenditure and financial management (PEFM) systems, highlighting key developments, challenges, and future directions in the context of macroeconomic and fiscal policy. It was conducted by a team under the supervision of the Ministry of Finance and Economic Planning and includes data from 2004 to 2010, with a focus on the period 2009-2010.

Main Points

1. Macroeconomic and Fiscal Developments

• Fiscal Expansion and Stabilization:

  • Between 2004 and 2008, public expenditure grew from 20% to 24% of GDP, primarily to expand access to health and education services.
  • The Government used fiscal space from the completion of the MDRI and HIPC debt relief initiatives to boost public spending.
  • In 2007, Ghana accessed international financial markets through the issuance of Eurobonds, which helped relax external budget constraints.

• Fiscal Stabilization in 2009:

  • A multi-year stabilization program was initiated in 2009 due to the impact of global shocks (floods, droughts, commodity price increases, and closure of international financial markets).
  • The program led to significant fiscal consolidation, with public expenditure growth curtailed and a focus on restoring macroeconomic stability.

• Macroeconomic Impact:

  • The fiscal adjustment had a negative impact on aggregate demand and economic activity.
  • The domestic financial sector faced challenges due to a high level of non-performing loans, which were partly due to the accumulation of public expenditure arrears.

• Domestic Resource Mobilization:

  • Ghana improved domestic resource mobilization, though from a low base.
  • The country is expected to regain fiscal space through oil revenues and stabilization efforts, which could support further public investment.

• Economic Challenges:

  • The review highlights the risk of debt distress, both public and external, which is currently moderate but could worsen if public spending is not managed effectively.
  • The forthcoming oil rent could exacerbate existing challenges in generating positive externalities through public spending, such as political capture and macroeconomic instability.

2. Public Financial Management (PFM) Developments

• PFM Performance and Prospects:

  • Ghana has made progress in PFM, with the implementation of the Ghana Integrated Financial Management and Information System (GIFMIS).
  • The system aims to improve budget comprehensiveness, consolidated cash management, monitoring, control of commitments, and payroll management.

• PFM Challenges:

  • Despite improvements in PFM systems, there is a lack of comprehensive and regular reviews of public expenditure outcomes.
  • Public expenditure tracking and evaluation remain limited, with few reports on effectiveness, efficiency, equity, and sustainability.
  • Major statutory funds for health and education are not included in the consolidated fund, making it difficult to aggregate expenditure by program.

• Transparency and Accountability:

  • The Government has taken steps to improve transparency, such as publishing fiscal outturn reports regularly and submitting the Freedom of Information Bill to Parliament.
  • These efforts aim to enhance executive accountability and public oversight of financial management systems.

3. Education and Health Expenditure and Outcomes

• Ghana's Spending Efforts:

  • Public expenditure on education and health has been a key focus of fiscal expansion.
  • The review emphasizes the need for a more systematic assessment of the outcomes of these expenditures.

• Education:

  • Increased access to primary education has been achieved, but there are concerns about the quality of learning outcomes.
  • The public sector wage bill has a significant impact on education spending, with average individual remunerations growing faster than GDP growth.
  • The Government has initiated a single spine salary structure reform to improve wage management and performance-based pay.

• Health:

  • The National Health Insurance Scheme (NHIS) has contributed to improved access to health services.
  • However, the review warns that the financial sustainability of the NHIS is at risk due to current trends.
  • There is a lack of comprehensive data on health outcomes and the effectiveness of public health spending.

4. Government Labor Force and Wage Bill

• Wage Bill Overview:

  • The public sector wage bill accounted for 57% of government revenue in 2008.
  • The wage bill grew from 4.7% to 7.6% of GDP between 2004 and 2008.
  • Average individual remunerations in the public sector increased by 17% annually in real terms, outpacing GDP growth.

• Challenges in Wage Management:

  • The current salary structure is relatively compressed, with most public civil servants in lower grades.
  • The Government has initiated a reform to address disparities and distortions in the wage structure.
  • Subvented Agencies (SAs) have a significant share of the wage bill, with 35% of the total wage bill attributed to them.
  • Payroll management in SAs is often disconnected from central management, leading to inefficiencies and the use of internally generated funds and allowances to top-up salaries.

5. Fiscal Decentralization

• Decentralization Efforts:

  • Fiscal decentralization has been a key part of Ghana's strategy to improve public service delivery and reduce regional disparities.
  • The District Assembly Common Fund (DACF) and the District Development Facility (DDF) together funded 10% of district expenditure in 2008.

• District Expenditure:

  • Poor districts received more than rich districts, as the latter could generate higher levels of internally generated funds.
  • The review suggests that the share of DACF resources managed by the center could be reduced to empower districts in local development planning.

• Challenges in Decentralization:

  • There is a need for improved incentives and capacity for local governments to generate internal funds.
  • The current fiscal decentralization instruments are limited in scope and may not be sufficient to support long-term development goals.

Key Information

• Key Sectors: Education and health are highlighted as major areas of public expenditure, with a focus on their effectiveness and efficiency.
• Fiscal Adjustments: The review underscores the importance of fiscal adjustments in restoring macroeconomic stability and the need for continued attention to public expenditure management.
• PFM Systems: The implementation of GIFMIS is expected to improve the comprehensiveness and consistency of public expenditure reporting.
• Wage Bill: The public sector wage bill is a significant component of government expenditure, with challenges in managing it effectively.
• Fiscal Decentralization: The review identifies the need for better fiscal decentralization mechanisms to support local development and reduce disparities.

Conclusion

The Joint Review of Public Expenditure and Financial Management in Ghana (October 2011) provides a detailed analysis of the country's fiscal and expenditure management systems. It highlights the progress made in reducing poverty, improving access to education and health services, and enhancing transparency and accountability. However, it also identifies several challenges, including the sustainability of fiscal expansion, the need for improved public expenditure outcomes, and the complexities of managing the public sector labor force and fiscal decentralization. The review calls for continued efforts to improve the quality of public expenditure, enhance fiscal transparency, and ensure effective management of resources to support long-term growth and development.