Composite budgeting to seal fiscal leakages

The composite budgeting system, one of the numerous programme-based financial management systems being introduced by government, will address the issue of revenue leakages in the various metropolitan, municipal and district assemblies (MMDAs) across the country, says Patrick Nomo, Director of Budget at the Ministry of Finance and Economic Planning (MOFEP).

Mr. Nomo, in an interview with the B&FT on the sidelines of the maiden Budget Officers Delegates’ Conference in Accra, said composite budgeting will ensure transparency in the disbursement and implementation of resources at the district level.

“At the district level, all decentralised departments will know what the other has planned and budgeted for, thereby promoting transparency and accountability. Once transparency improves, checks and balances come into play and will ultimately seal potential sources of fiscal leakages.”

He said the composite budgeting system will be implemented through GIFMIS, the Ghana Integrated Financial Management Information System, and will hopefully cover the various MMDAs by the end of next year.

“Composite budgeting is the planning and budgeting aspect of the numerous programme-based financial sector interventions, and GIFMIS is the ‘software’ through which the budgeting and accounting system will be carried out.”

The forum sought to keep participants abreast of the diverse reforms in the financial sector, and also create an interface between formulators and implementers of the composite budgeting system. It provided a platform for discussions on how to iron-out bottlenecks that are likely to hinder smooth operation of the system.

Mr. Nomo said MOFEP will sustain the programme to ensure that budget analysts in the various MMDAs are in tune with developing trends in the financial sector. He implored participants to leverage the expertise to better improve service delivery in their various districts, even in times of limited resources.

Composite budgeting seeks to consolidate all decentralised funds in the various MMDAs into a centralised resource pool, which will improve transparency in the disbursement of funds at the various levels.

Deputy Minister of Finance and Economic Planning, George Kwesi Ricketts-Hagan, said composite budgeting is part of the numerous programme-based financial management systems which have been introduced by government to ensure that funds are channelled toward specific projects, especially at the district level.

“With composite budgeting, government will be able to get a panoramic comprehension of all fiscal resources in the various MMDAs, and hold the appropriate quarters accountable in the discharge of duties.

“It is aimed at improving service-delivery, especially by the metropolitan, municipal and district assemblies, and is a major step toward fiscal decentralisation. Government is vigorously working to streamline the flow of resources to MMDAs,” he said.