2005年-世界发展银行全球_Ghana___2005_External_Review_of_Public_Financial_Management_Volume_1_Main_Report_62页_5mb

2005 External Review of Public Financial Management in Ghana

Core Content

The 2005 External Review of Public Financial Management (ERPFM) in Ghana evaluates the country's macroeconomic developments, budget management, and implementation of public financial management (PFM) reforms. It highlights progress made and identifies areas needing further improvement to enhance fiscal discipline, transparency, and operational efficiency.

Main Report Structure

1. Macroeconomic Developments

• Economic Performance (2004):

  • Real GDP growth accelerated to 5.8% in 2004.
  • Inflation fell to 11.8%, and gross international reserves improved to nearly four months of import coverage.
  • Ghana reached the HIPC Completion Point in July 2004, resulting in significant debt relief and freeing up budget resources for poverty reduction.

• Aggregate Fiscal Discipline:

  • Fiscal discipline improved since 2002, with revenue increasing to over 23% of GDP.
  • Domestic financing of primary expenditure rose to 23% of GDP in 2004, up from 17% in 2002.
  • Discretionary spending from the Consolidated Fund (CF) was closer to the voted budget in 2004.

• Managing Fiscal Risks:

  • The fiscal outlook is positive if current policies are maintained.
  • The new petroleum sector deregulation (implemented in February 2005) is expected to reduce the risk of large subsidies to state-owned enterprises.
  • The Subvented Agencies Bill aims to rationalize operations and improve oversight.
  • Ghana is working to ensure predictability of donor funding, which accounts for nearly one-third of the budget.

2. Budget Management and the Ghana Poverty Reduction Strategy (GPRS)

• Revenue Performance:

  • Revenue growth was largely driven by indirect and international trade taxes.
  • The tax to GDP ratio increased by 4 percentage points, reaching 22%.
  • Compliance with the Financial Administration Act led to increased transparency with the disclosure of internally generated funds (IGFs).

• Budget Execution:

  • Predictability of the budget has improved, but MDAs and economic classifications still show significant deviations from the approved budget.
  • Social sector MDAs (e.g., education, health) tend to overspend, while other sectors underspend.
  • Quasi-fiscal operations of parastatals, especially Tema Oil Refinery (TOR), contributed to budget variance.

• Wage Bill Management:

  • The wage bill is a major source of budget variance and requires better integration with the budget process.
  • Increases in the wage bill come from new hiring and salary adjustments, which are not always predictable or transparent.
  • The government is considering public service reforms and a new pay policy to address these issues.

• Improving Budget Comprehensiveness and Transparency:

  • The government aims to improve transparency by including Internally Generated Funds (IGFs) in the 2005 Appropriations Act.
  • Budgeting for HIPC debt relief will be integrated into the regular budget process.
  • Statutory funds (e.g., D.A.C.F. and G.E.T.F.) are ring-fenced, which can fragment the budget and complicate management.

• Improving Predictability of External Assistance:

  • Donor funding modalities contribute to budget fragmentation.
  • Despite a shift toward budget support, project aid may still increase in proportion.
  • The government is working to improve donor aid recording and fiscal reporting to enhance transparency and donor confidence.

• Strengthening the MTEF:

  • The Medium-Term Expenditure Framework (MTEF) is being reviewed for improved strategic resource allocation and policy coherence.
  • The MTEF could be strengthened by aligning it more closely with the GPRS and improving the output/outcome focus in budgeting.

3. Implementation of PFM Reforms

• Legal Framework:

  • The Financial Administration Act (FAA) and Financial Administration Regulations (FAR) provide a strong legal foundation for PFM.
  • These laws, along with the Procurement Act and Internal Audit Agency (IAA) Act, support a more unified and accountable system.

• Public Procurement:

  • The Public Procurement Board (PPB) has a clear three-year strategic plan and is operational since October 2005.
  • Close coordination with MoFEP is essential for effective implementation.

• Internal Audit:

  • The IAA has been established and is functioning as an apex oversight body.
  • All MDAs/MMDAs will establish internal audit units (IAUs) to ensure compliance and efficiency.

• Accounting and Budgeting:

  • The Budget and Public Expenditure Management System (BPEMS) is being implemented to improve coordination and transparency.
  • The government is working to decentralize accounting and treasury functions to MDAs, which could improve efficiency.

Key Findings and Recommendations

• Fiscal discipline has improved, but predictability of budget execution remains a challenge.
• Wage bill management needs to be integrated more closely with the budget process.
• Statutory funds and contingency provisions contribute to budget fragmentation and reduce transparency.
• Donor funding is a significant part of the budget, but its predictability and integration need improvement.
• The MTEF should be strengthened to ensure better alignment with GPRS priorities and improved fiscal planning.
• PFM reforms are ongoing, and legal and institutional coordination will be critical for their success.

Challenges and Areas for Improvement

• Budget predictability at the MDA and economic classification levels needs to be improved.
• Contingency provisions are still high and should be reduced to below 5% of the budget.
• Donor aid recording and fiscal reporting require better accuracy and timeliness.
• Wage bill growth is not well managed and leads to budget overruns.
• Statutory funds should be integrated into the main budget to ensure unity and coherence.

Conclusion

The 2005 ERPFM highlights the progress made in Ghana's PFM reforms and the importance of maintaining sound fiscal and monetary policies. It also emphasizes the need for continued efforts to improve budget predictability, wage bill management, and donor coordination to ensure that public financial management supports the government's poverty reduction goals and economic development agenda.