Government of Ghana is to introduce a Programme Based Budget.

 

The Government of Ghana is to introduce a Programme Based Budget (PBB) next year to replace the current Activity Based Budget (ABB).

The new method, which is expected to cost $1.7 million, is to better the measurement of government expenditures, improve effectiveness, and ensure accountability and transparency in public spending management.

The Minister of Finance, Mr. Seth Terkper, disclosed this during a one-day workshop to brief law makers about the introduction of the new budget system. He explained that the ABB, which the nation had practised for fifteen years, was difficult, due to the sheer activities in the budget estimates, and a centralised budget execution system.

“It meant that Ministry Departments and Agencies had to come to the Ministry of Finance to seek for the release of funds for all activities.

“In addition, all approval comes from the Finance Ministry, and this made the ministry very powerful and very slow, cumbersome, and an inefficient process,” he explained.

A situation, the Minister noted, had also made it impossible to monitor budget outcomes, hence the introduction of the PBB, which has a system of checks and balances.

Mr. Terkper also hinted that the new budget system was part of a number of Public Financial Management introduced by the government to ensure effective and efficient service delivery and value for money.

He continued that the PBB would, among other things, address the challenges and make significant progress towards achieving the objectives of the Medium Term Policy Framework (MTPF) and the Millennium Development Goals.

He went on to say that the PBB would respond to defects in the current ABB system, improve outcome of activities, performance, and service delivery by MMDAs, and ensure accountability and transparency.

But this, according to the law makers, was not the solution to arrest the country’s economic lapses. The first to raise an objection was the Member of Parliament for La Dadekotopon, Nii Amasah Namoale, who observed that the amount set aside to implement the new system was on the high side. “Mr. Speaker, even a million dollars is too much, as law makers we should not accept this.”

But the Deputy Majority Leader, Mr. Alfred Agbesi, said the new system was a clear indication that the country would improve upon her financial lapses in 2014. To him, the suggestions by the Minister were all implementable, and called the members to support the initiative.

Dr. Akoto Osei was, however, convinced that the PBB system was not explicit about revenue and expenditure, and as such, did not see how it would cut down over-spending and mismanagement.

“Nothing will change, he just said the budget system would shift from activity based to programme based, let’s not add salt to injury,” Dr. Akoto said.

On his part, the Deputy Minority Leader added that the new PBB system did not explain in any way how it would stop over-spending.

Source: TheChronicles