In a bid to enhance the efficacy of Ghana’s Public Financial Management System (PFMS), Dr. Kodjo Essein Mensah Abrampa, the Director General of the National Development Planning Commission (NDPC), has underscored the imperative need to bolster the linkages between planning, budgeting, and reporting processes.
This call to action was articulated during a validation meeting held in Accra concerning the draft 2023 National Annual Progress Report (APR). Dr. Abrampa emphasized the pivotal role of the link between planning and budgeting in shaping all subsequent activities within the public sector. He highlighted a disconcerting trend where only 40% of the budgets allocated to various ministries were aligned with their planned activities.
Conversely, the remaining 60% of expenditures did not adhere to the established plans. This discrepancy, according to Dr. Abrampa, significantly hampers the ability to accurately gauge progress and achieve development objectives.
Dr. Kodjo Essein Mensah Abrampa added, “This year marks the first cycle where we are going to implement this change. Moving forward, anything outside the budget cannot be spent and expenditures that do not correspond to the plan will require a review process.”
The comprehensive reform agenda spearheaded by the NDPC encompasses multifaceted interventions designed to bridge the gap between planning, budgeting, and reporting. This includes the implementation of robust mechanisms for ensuring alignment between budget allocations and planned activities across ministries and governmental departments.
Additionally, emphasis will be placed on enhancing the monitoring and evaluation framework to enable real-time tracking of expenditure vis-à-vis set targets.
Furthermore, Dr. Mensah Abrampa highlighted the importance of fostering greater collaboration and synergy among key stakeholders involved in the financial management ecosystem, including policymakers, budget analysts, and oversight bodies.
By fostering a culture of accountability and transparency, the NDPC aims to instill confidence in the public financial management system and pave the way for more efficient resource allocation and utilization.
The reform process will involve a series of measures designed to improve the alignment between budget allocations and planned activities across all ministries.
This includes the development of more robust planning frameworks, the implementation of better monitoring and evaluation mechanisms, and the enhancement of reporting procedures to ensure greater transparency and accountability.
The Director-General emphasized the importance of evidence-based decision-making, stressing the role of the APR in providing real data for measuring trends and informing policy development.
He urged Ministries, Departments, Agencies (MDAs), and Metropolitan, Municipal, and District Assemblies (MMDAs) to work collaboratively, to ensure the accuracy and validity of the data reported.
Dr. Mensah Abrampa disclosed that the NDPC, in collaboration with 12 institutions involved in public financial management, is working towards automating the system by 2025.
Dr. Kodjo Essein Mensah Abrampa noted, “This automation will ensure that approvals for expenditures are contingent upon their alignment with the budget and corresponding planned activities.”
Dr. Mensah Abrampa’s remarks at the validation meeting underscore the importance of these reforms in ensuring that Ghana’s public financial management system is both efficient and aligned with the country’s development goals.
By addressing the current disconnect between planning and budgeting, the NDPC aims to foster a more coordinated approach to public finance management, ultimately leading to more effective governance and sustainable development outcomes.
Dr. Kodjo Essein Mensah Abrampa’s clarion call for strengthening the linkages between planning, budgeting, and reporting processes underscores the critical importance of cohesive and integrated financial management practices in driving sustainable development in Ghana. As the nation embarks on a journey towards economic prosperity and social advancement, ensuring alignment and coherence within the public financial management framework will be paramount in realizing its aspirations.
