PFM for Service Delivery Program

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The objective of the PFM for Service Delivery Program - Program-for-Results for Ghana is to improve resource mobilization and allocation, budget execution and accountability. The project has four key result areas. Key Result Area 1: Improve public resource mobilization. The result area will support the government program in improving public resource mobilization, leading to increased fiscal space allowing more resource allocation to CAPEX and enhanced fiscal capacity to respond to shocks. This will involve supporting the increase in tax receipts and the expansion of the tax net. The result area will also aim to increase transparency of tax expenditures through improved reporting and accountability, and by improving taxpayer compliance through reduced burden to comply with filing/payment enabled by better and easier access to electronic filing, enhanced risk management and better dispute resolution mechanism. Finally, this result area focuses on external resources which still play a pivotal role in key service areas. It aims to enhance donor coordination through better implemented Sector Working Groups (SWGs) and increased use of GIFMIS by donor funded projects. Key Result Area 2: Improve resource allocation consistent with government priorities. The result area will support the government program in improving resource allocation and involve managing subsidies/transfers to SOE sector and improving the performance, transparency, disclosure and accountability through more effective oversight and timely reporting by expanding the scope of the SOR to include a debt and contingent liabilities statement and the execution of performance evaluations for selected SOEs. This result area also covers improving public investment management by using improved fiscal projections for planning and public investment, as well as better allocation of CAPEX and strengthened PIM portfolio management. Finally, this result area aims at improving annual budgeting process to ensure better alignment with the development strategies and government priorities. Key Result Area 3: Improve budget execution and accountability to enable better service delivery. The result area will improve budget execution and accountability and in turn, enable better service delivery. It will involve improved budget execution by making certain that all MDAs and public service providing intuitions receive their allocated budgets in time to enable them to function smoothly and improve service delivery through timely issuance of warrants, enhanced in-year cash forecasts, and timely payments reducing expenditure arrears. The result area also aims at improving management of public expenditure through increased use of competitive procurement methods and enhanced commitment control by deepening of GIFMIS in key service delivery sectors – health and education. Finally, improved accountability and legislative oversight is a key part of this result area. Key Result Area 4: Strengthen reforms coordination and stimulus for change. This result area ensures that PFM reforms implementation is effectively led through an adequate governance structure, an effective change management approach, a smooth coordination and progress reporting mechanism promoting stakeholder enagement, and adequate monitoring through research publications, field inspections and structured surveys.