1. 1. Aggregate fiscal discipline in Ghana - improving in recent years due to: -Strong revenue performance -Improved PEM (HIPC Exp. Mgt. benchmarks: 7 met in 2004, compared to 1 in 2001)

2. 2. Improved medium-term fiscal outlook
Total revenue and grants
Total expenditure
Overall balance
Stock of domestic debt
Total Domestic. Fin. Exp.
-10 -5 5 10 15 20 25 30 35 40
2001A
2002A
2003A
2004E
2005 B
2006 P
2007 P
Year
% of GDP
A - actual
E - estimated
B - budgeted
P - projection

3. 3. Budget Deviation Index-CF (voted/ executed)
Total gov't domest. fin. Exp.
Major MDAs
Items 1-4
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2002
2003
2004
Year
Abs (% )
Item 1-4: personal emolument, administration, services, investment
CF – Consolidated Fund

4. 4. Trends in Poverty Related Expenditure (% of GDP)

5. 5. GPRS influencing budget allocation
Budget becoming more poverty oriented in aggregate
Medium-Term Priority Programs (program-actual) closer to GRPS targets. Mix between wages and other items improving.

6. 6. Challenges Management of wage bill (PSR)
Implement PEM reforms (three news laws approved: financial administ., internal audit, and procurem.)
Improve MTEF and focus on service delivery issues
Improve predictability of aid