Program Based Budgeting
Ghana
2012
mofepbudget.pbb@gmail.com
Dan Narainsamy
www.sites.google.com/site/
0267315666
ghanapbb/
PBB in Ghana
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2010 – Pilot with two Ministries –
Communication and Tourism
2011 - Further rollout of pilot (Oct –
Dec ) - 7 MDA’s
2012 – Further rollout to 14 other
MDA’s (Feb – May)
2014 – planned full rollout –
presentation of PBB to Parliament
1
The three main objectives of
budgeting in government
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Aggregate fiscal discipline
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Allocative efficiency
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effective control of resources
allocating resources according to strategic
priorities.
Operational efficiency
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using resources in such a way that outputs
are maximised.
2
Traditional Line-item budget
format
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Shows exactly how much is spent on each
item of expenditure
Focuses on ‘inputs’ not ‘outputs’ or ‘delivery’
Itemises payments (and receipts) by standard
categories (Chart Of Accounts - COA)
It is a form of financial control rather than
effectiveness
Helps to ensure aggregate fiscal discipline
3
PBB vs ABB
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Budget is prepared against detailed activities
Sometimes still use line item incremental
approach
Too much detail for management purposes
Core vs Non–core activities
Details makes it difficult to link activities to
outcomes/objectives - results
4
What is program budgeting?
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Program budgeting is an approach and
a process that relates resources to
proposed and actual results
Program budgeting includes:
concepts; techniques and a structure
5
How does the PBB link to
Sector Strategy Papers
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The Sector Strategy Paper is the plan
for how a Ministry fulfils its mandate
and addresses government reforms.
The PBB is the financial and operational
plan putting policy and strategy into
practice.
6
The Overall Structure of Program
Budgeting
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The structure consists of programs,
subprograms and activities
In order to measure results program
budgeting requires:
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Outcomes (measurable and specific)
Outputs and performance indicators
7
Advantages of Program Budgets
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Program budgets present more useful
information on service delivery & allow for
transparency and accountability in service
delivery
PBB’s are more useful for:
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determining whether allocations reflect priorities
planning the delivery of services
monitoring the use of resources within each
program
identifying areas where savings can be made or
where more funds are needed
8