Government Takes Lead In Defining Donor Support

Mr. Seth Terkper, Deputy Minister for Finance and Economic Planning (MOFEP), said in Accra yesterday that Government will strengthen its development agenda and take the lead in defining a budget which donors can support.

Speaking at a day's workshop on the Multi-Donor Budget Support (MDBS) programme, he said to enhance accountability, Ghana has to develop its national strategy, set its own priorities and strengthen the country's systems and processes.

The Deputy Minister explained that the process allows donors or Development Partners (DPs) and government to pool aid to support the budget and enable the two parties to agree on common terms instead of dealing with each donor separately.

It is for this reason, he said, that the National Development Planning Commission (NDPC) is at its final stages of developing a Medium-Term Development Plan (MTDP) framework to replace the Ghana Poverty Reduction Strategy (GPRS) Phase II that comes to an end this year.

Similarly, the purpose of setting up the Ghana Integrated Financial Management Information System (GIFMIS) in September was to improve budget processes under the MOFEP and financial accounting methods under the Controller and Accountant General's Department (CAGD) and restore fiscal discipline under the stability agenda proposed in the 2009 budget.

The justification, Mr. Terkper noted, is that external aid accounts for about 20 per cent of the total annual budget resources and is a major anchor for infrastructure development.

He said, as the global aid architecture changed rapidly, the onus is on government to ensure that MDAs involve in its delivery business adjusted accordingly and managed well to achieve results, adding that the DPs have since contributed a cumulative total of two billion US dollars and 300 million dollars annually.

Mr. Terkper said, the success and benefit of the MDBS process has been mutual and therefore its sustainability and growth depend on the commitment of the government and DPs. "MDBS will continue to thrive on ownership and harmonization," he added.

The Chief Director of MOFEP, Professor Newman Kusi, also emphasised the need for the government ownership in the development agenda and noted that it is equally important to deliberate in a frank manner with DPs to meet government goals.

Source: GNA