1. THE ISODEC ECONOMIC LITERACY SERIES ISODEC EXPERIENCES ON ENGAGING ON SOCIAL ACCOUNTABILITY IN GHANA AND BEYOND OXFAM-NOVIB workshop (Bishop Akolgo-ISODEC-Ghana)

2. WHAT I WILL TALK ABOUT My presentation will look at: 1.Who ISODEC is, key advocacy goal 2.Our engagement on budgets in Ghana and beyond 3.How we do it 4.Results of efforts so far 5.Lessons learnt and challenges 6.Future Perspectives

15. THE BUDGET PROCESS THE GENERIC BUDGET CYCLE

16. The Budget Process The process begins in May and ends in November each year. Step I- Macro-Economic Framework This involves the development of a macroeconomic framework which forecasts aggregates like GDP, Domestic Revenue and the availability of donor resources. It involves the Minister of State for Planning, the two Deputy Ministers of Finance, the Chief Director, the Director of Budget, the Research Division, Aid & Debt Management Unit (ADMU) (all of MFEP) Ghana Statistical Services, BoG, NDPC and the Revenue Agencies. Step II - Policy Review At the same time as the macro framework is being prepared, MDAs undertake a review of their policies, objectives, outputs and outcomes in order to estimate their broad expenditure requirements. MDA policy review reports are submitted to MFEP and constitute the information base for the next step which is the cross-sectoral meetings. Step III - Cross-Sectoral Meetings Here, clusters of related MDAs are brought together to discuss their policy review reports and identify areas of overlap and coordination among themselves. For each cluster, the Chief Director of an identified lead ministry or his representative chairs the meetings and is responsible for the production and presentation of the report to MFEP. This step takes place early in July. MFEP is represented the by unit responsible for MTEF. Step IV - Policy Hearings In the latter part of July, policy hearings are held with MDA sector groups with a Deputy Minister of MFEP in the chair. The MDA policies and broad expenditure requirements are discussed in the light of the reports from the cross-sectoral meetings. Our information revealed that this stage is currently not being adhered to, having been squeezed out recently by time pressures and resulting in a loss of inter-MDA co-ordination. It may be restored in future. Step V - Ceilings The policy hearing reports feed into the determination of the draft MDA expenditure ceilings allocation in terms of GoG resources, IGF and donor inflow. The approved ceilings are conveyed to MDAs as part of the guidelines for the preparation of the budget. The first year ceiling is firm while the two outer years are indicative only. This activity takes place in July/August. Step VI - Review of MDA Strategic Plans and Budget At this stage, MDAs review their strategic plans including outcomes and objectives and cost including critical activities. Step VII - Prioritization and Presentation of MDA Budget to MFEP MDAs prioritize their activities and prepare their estimates to fit into the ceilings for presentation to MFEP in September. Step VIII - Budget Hearings In October, MFEP conducts budget hearings with each MDA to ensure that their estimates are within the ceilings and are consistent with their strategic plans. Step IX - Finalization and Approval of Estimates MFEP submits MDA estimates to Cabinet and Parliament for approval. The deadline for submission to Parliament is 30 th November. Any consultations with non-government parties occurs outside the above formal processes. Consultation could occur at the Step IV stage but this is currently in abeyance. it is likely to become an established practice.