GOVERNMENT AND ELEVEN DEVELOPMENT PARTNERS SIGN 2ND MULTI DONOR BUDGET SUPPORT FRAMEWORK MEMORANDUM

    The second Multi-Donor Budgetary Support (MDBS), Framework Memorandum has been signed between Government of Ghana and eleven (11) partner countries.

Dr. Anthony Akoto-Osei, Minister of State at the Ministry of Finance and Economic Planning signed on behalf of the Government of Ghana whiles the His Excellency Joachim Schmitt, Counselor for Development at the German Embassy signed on behalf of the partners.

The MDBS Development Partners countries and institutions are the African Development Bank, Canada, Denmark, European Commission, France, Germany, Japan, Netherlands, Switzerland, the UK and the World Bank. The UNDP and the United States of America (US) are observers.

In June 2003, Government and its MDBS partners signed the first Framework Memorandum with nine development partners. The new document reflects international standards as well as evolved practices of Multi Donor Budget Support in Ghana and seeks to renew the partnership between the Government and its MDBS Partners.

It also seeks to further strengthen the Public Financial Management Systems which underpins the principles of the MDBS program and is in line with the Paris Declaration on harmonization of arrangements, procedures as well as sharing of analysis.

The Minister of State said the MDBS has proved to be a prudent aid alternative and described the new FM as an “Operational Manual” which provides both parties guidelines for successful implementation of the programme.

Dr. Osei added that the MDBS has contributed to the successes Government has chalked in implementation of the GPRS which he said are evidence in the achievements made in the social sectors (Health, Education, Water and Sanitation) and private sector development.

He noted that many development partners now recognized that general budget support is the most efficient way of providing development assistance. “Various studies and reports have rated General Budge Support as the most aligned, predictable and cost effective aid modality, which supports the principle of national ownership”.