Program Based Budgeting

Ghana
2012
mofepbudget.pbb@gmail.com Dan Narainsamy
www.sites.google.com/site/ 0267315666
ghanapbb/
PBB in Ghana
 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
 Aggregate fiscal discipline
 effective control of resources
 Allocative efficiency
 allocating resources according to strategic
priorities.
 Operational efficiency
 using resources in such a way that outputs
are maximised.

2
Traditional Line-item budget
format
 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
 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?
 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
 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
 The structure consists of programs,
subprograms and activities
 In order to measure results program
budgeting requires:-
 Outcomes (measurable and specific)
 Outputs and performance indicators

7
Advantages of Program Budgets
 Program budgets present more useful
information on service delivery & allow for
transparency and accountability in service
delivery
 PBB’s are more useful for:
 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