2008年-世界发展银行全球_Ghana_-_2007_External_Review_of_Public_Financial_Management___Volume_1_Main_Report_139页_10mb

2007 External Review of Public Financial Management in Ghana

Core Content

The 2007 External Review of Public Financial Management (ERPFM) in Ghana is a comprehensive assessment of the country's fiscal performance and public financial management (PFM) systems. It is part of a series of annual evaluations conducted by development agencies to support the Multi-Donor Budgetary Support (MDBS) program. The review focuses on macroeconomic developments, the alignment of the budget with the Growth and Poverty Reduction Strategy (GPRS II), and the progress made in strengthening PFM and public procurement systems.

Main Report Structure

1. Introduction

• The report is part of a collaborative effort between the Government of Ghana and development partners, including the World Bank and DFID.
• It includes contributions from various government departments, such as the Ministry of Finance and Economic Planning (MoFEP), the Public Procurement Authority (PPA), and the Ghana Audit Service (GAS).
• The review is based on extensive fieldwork and consultations with key stakeholders.

2. Review of Economic Performance

• Economic Growth: Ghana's economy continued to grow strongly, with real GDP growth reaching a record 6.4% in 2006 and projected to remain at 6.3% in 2007.
• Fiscal Position: The fiscal deficit widened in 2006, reaching 7.5% of GDP, due to higher government expenditure than revenue collections.
• Wage Bill: The wage bill became a significant driver of public spending, reaching nearly 10% of GDP. The average remuneration for health service staff increased by 181%, while that for education staff rose by 23%.
• Energy Subsidies: Energy sector subsidies, driven by low electricity tariffs, were a major fiscal pressure, estimated at around 2.0% of GDP.
• Budget Deficit: In 2007, the fiscal deficit is expected to remain around 7.5–8.0% of GDP, with higher interest payments on domestic debt due to increased deficits.

3. Public Financial Management

• The PFM system has made commendable progress, including reducing audit backlogs and establishing new internal audit arrangements.
• A new budget preparation timetable was introduced to ensure appropriations are approved before the financial year begins.
• The review highlights the need for further strengthening of budget formulation and execution to improve budget credibility.
• The Short and Medium-Term Action Plan (ST&MT AP) for PFM is being implemented, with a focus on improving analytical capacities for budgeting and enhancing transparency of budget information.
• The review also includes a Public Procurement Assessment (CPAR 2003), identifying strengths and challenges in the procurement system.

4. Public Procurement

• A strong foundation has been laid for open, competitive, and transparent public procurement.
• The Public Procurement Authority (PPA) is working to build understanding and capacity to manage the new procurement system.
• The review recommends:
  • Refining the PPA's monitoring tool.
  • Improving information on future tendering opportunities.
  • Mainstreaming procurement into the national budget process.
  • Establishing an independent appeals and complaints mechanism.
  • Conducting procurement audits.
  • Reforming the procurement regulatory framework.
• The Ghanaian Eurobond issued in September 2007 provided US$750 million, offering an opportunity to reduce reliance on domestic debt and restore the macroeconomic balance.

Key Findings

• The PFM system has seen significant improvements, but budget formulation and execution require further strengthening.
• The wage bill is a major driver of public spending, with high variability across sectors.
• Energy subsidies remain a key fiscal burden, necessitating further tariff adjustments to align with cost recovery.
• The Ghana Growth and Poverty Reduction Strategy (GPRS II) is being aligned with the budget, though not fully achieved in 2006.
• Capital spending increased in 2006 to support infrastructure development, but not as intended due to delays in project preparation and implementation.
• The Public Procurement System has shown progress, but reforms are needed to ensure efficiency, transparency, and accountability.

Recommendations

• Complete the implementation of the Integrated Personnel and Payroll Database (IPPD2) to reassert control over the wage bill.
• Continue reducing energy subsidies by aligning tariffs with market conditions.
• Build capacity to manage large infrastructure projects.
• Refine the PPA's monitoring tool and strengthen procurement processes.
• Ensure the judicious use of non-concessional funding to maintain debt sustainability.
• Mainstream procurement into the national budget process.
• Implement an independent appeals and complaints mechanism.
• Undertake procurement audits and reform the procurement regulatory framework.

Key Data and Tables

• Table 2.1: Summary of Central Government Budgetary Operations (2002–2007).
• Table 2.2: Overall fiscal performance.
• Table 2.3: Pattern of Wage Bill Spending by MDA (2005–2006).
• Table 2.4: Wage Bill in Selected African Countries.
• Table 2.5: Discretionary Expenditure by item (GoG only).
• Table 2.6: 2006 Supplementary Budget by sector.
• Table 2.7: Sectoral Expenditures on Investment (2004–2006).
• Table 2.8: Reporting of Contingency by MDA and Line Item.
• Table 2.9: Overview of External Financing Flows by Type and GPRS area.
• Table 2.10: Poverty-Related Expenditures by Area (in % of GDP).
• Table 2.11: Cross-Country Comparison of Poverty-Reducing Expenditures.
• Table 2.12: Education Sector Expenditures by Program and Source of Funds.
• Table 2.13: Health Sector Expenditures by Program and Source of Funds.
• Table 2.14: MoFA Expenditure – Actual versus Budgeted (2004–2006).
• Table 2.15: Natural Resources and Environment – Agency Budgets (2005–2007).
• Table 2.16: 2006 Budget and GPRS II.
• Table 2.17: 2007 Budget and GPRS II.
• Table 3.1: Expenditure Deviations between Original Budgeted and Actual Outturns for 20 Largest Budget Heads (2004–2006).
• Table 3.2: Distribution of GoG Discretionary Expenditure by Quarter.
• Table 3.3: Distribution of GoG Investment Expenditure by Quarter.
• Table 4.1: Main Challenges and the Government's Procurement Reform Program.
• Table 4.2: Proposed Key Measures and Sequencing.

Annexes

• Annex 1: Calculation of Deviations by Budget Head (2004–2006).
• Annex 2: Transparency of Budget Information.
• Annex 3: Statistical Annex.

Conclusion

The 2007 ERPFM highlights both the progress made and the challenges remaining in Ghana's public financial management and procurement systems. While the PFM system has improved, budget credibility and fiscal sustainability remain key areas for attention. The review emphasizes the need for continued reforms in public procurement and the importance of aligning public spending with GPRS II objectives. The successful Eurobond issuance provides a new avenue for financing, but careful management is required to ensure long-term fiscal stability.