Budgeting For Result; the Introduction of Programme Based Budgeting in Ghana

Abstract

This research assessed implementation of the Programme Based Budgeting system in Ghana since its introduction in 2014 to 2018 at the central government level. Four main thematic areas were used to determine whether the introduction of Programme Based Budgeting (PBB) has really led to Budgeting for Results. These include strategic allocation of Public resources, efficient utilisation of Public resources, and attainment of government priorities. The research work also focused on the Budget transparency and accountability. The study used the Cronbach’s alpha which is parametric method of analysis as the internal consistency of the constructs was established for the thematic areas. The study revealed that PBB enabled the harmonization of resource allocation to MDAs with annual action plan and also making or Medium Term Indicative ceilings reliable. PBB allows for flexibility in resources allocation and utilisation by Government and MDAs. The results indicated that the PBB implementation contributed positively and substantially to the government's efficient use of resources and enabled MDAs to ensure that projects and activities are conducted at minimum cost, on time and within budget. Another key revelation was that PBB had ensured value for money for projects and activities undertaken by MDAs and provides Key Performance Information (KPIs) framework for demanding results from MDAs. It also focused on long term goals leading to outcomes than ABB. With regards to transparency and accountability of the budget, it was eminent that PBB has enhanced the quality of KPIs provided by MDAs as well as reflecting MDAs budget inputs accessed online. PBB has resulted to MDAs adhere to reporting and monitoring arrangements of the Budget and also stakeholders involvement in the Budget process. Beside these benefits, results show that some attributes should be given to the tenure of ABB as it’s also enhanced some level of attaining government priorities and Public sector delivery.