There is a need to strengthen the linkages between planning, budgeting and reporting processes in Ghana’s public financial management system, the Director General of the National Development Planning Commission (NDPC), Dr Kodjo Essein Mensah Abrampa, has said.
Addressed a validation meeting in Accra on a draft 2023 National Annual Progress Report (APR), Dr Abrampa stated that the link between planning and budgeting influences all other activities.
He disclosed a concerning trend where only 40% of ministries’ budgets corresponded to their planned activities, while the remaining 60% of spending did not align with the plans.
That disconnect, he said, undermined the ability to accurately measure progress and attain development goals.
To rectify the situation, he said the NDPC has initiated a comprehensive reform process.
“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,” he added.
The Director-General emphasised 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 Abrampa disclosed that the NDPC, in collaboration with 12 institutions involved in public financial management, is working towards automating the system by 2025.
“This automation will ensure that approvals for expenditures are contingent upon their alignment with the budget and corresponding planned activities,” he noted.
He warned that MDAs that do not have approved plans and certifications will not have their budgets authorised for the 2024 fiscal year.
Joyce Adwoa Animia Ocran, ISD
