Institutional and personnel capabilities for budget credibility: A political economy analysis of public financial management in Ghana

Since the country’s return to democratic rule in 1993, Ghana
has made significant strides in improving governance and
public financial management (PFM) systems, particularly in
achieving macro-fiscal stability, strengthening the legislative
frameworks for the management of public resources and
in improving external oversight. However, some challenges
remain. There is often a disconnect between budget planning
and execution, and expenditure deviations from approved
budgets are quite common. This is despite significant
reforms in recent years, including the introduction of the
Ghana Integrated Financial Management Information System
(GIFMIS), the Public Financial Management Act and the Fiscal
Responsibility Act.
In this context, this review set out to investigate the
organisational and personnel capabilities for budget
credibility in Ghana. The study focused on some key PFM
areas including revenue forecasting, expenditure planning
and execution, accountability and on the human resource
capabilities surrounding these systems, namely personnel
availability, skills and motivation.