## _cr12204 — Volume II: Ghana Shared Growth and Development Agenda (GSGDA) — Costing Framework ## Source details **Canonical URL:** [_cr12204 — Volume II: Ghana Shared Growth and Development Agenda (GSGDA) — Costing Framework](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2012/_cr12204.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2012/_cr12204.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2012/_cr12204.pdf.json) --- ### Executive summary and strategic focus - Purpose: Volume II provides the costing framework for effective implementation of the policies and strategies in the GSGDA; organized around seven thematic areas. - Medium-term strategic goal: lay the foundation for structural transformation of the economy within the decade ending 2020 through industrialization (especially manufacturing) based on: - modernized agriculture; - sustainable exploitation of natural resources (minerals, oil and gas); - rapid infrastructural and human development; - application of science, technology and innovation. - Prioritized expenditure areas: Agriculture; Infrastructure (including energy, oil and gas); Water and sanitation; Health; Education (including ICT, Science, Technology and Innovation). - Thematic areas of the MTDPF: - Ensuring and sustaining macroeconomic stability; - Enhanced competitiveness of Ghana’s private sector; - Accelerated agricultural modernization and natural resource management; - Oil and gas development; - Infrastructure and human settlements development; - Human development, employment and productivity; - Transparent and accountable governance. ### Total estimated cost and thematic allocation (GSGDA 2010–2013) - Total cost: US$23,891.459 million (GH¢34,642.62 million). - Allocation by thematic area: - Ensuring and sustaining macroeconomic stability — GH¢729.17 (US$502.873) — 2.10 percent - Enhanced competitiveness of Ghana’s private sector — GH¢2,764.01 (US$1,906.211) — 7.98 percent - Accelerated agricultural modernization and natural resource management — GH¢1,314.21 (US$906.354) — 3.79 percent - Infrastructure and human settlements development — GH¢13,656.70 (US$9,418.415) — 39.42 percent - Oil and gas development — GH¢5,222.09 (US$3,601.438) — 15.07 percent - Human development, employment and productivity — GH¢8,727.18 (US$6,018.748) — 25.19 percent - Transparent and accountable governance — GH¢2,229.26 (US$1,537.419) — 6.44 percent - TOTAL — GH¢34,642.62 (US$23,891.459) ### Coverage, governance and process - Costs for enabling environment, monitoring and evaluation captured mostly under Governance thematic area. - Resource envelope comprises domestic and external financing sources. - Costing process: desk-top research, data capture, technical analysis, validation; four-month period beginning July, 2010 and ending in November; led by a technical task team; MDAs provided inputs; costing guidelines issued; final MTEF outputs adjusted against absorptive capacities and historical expenditure patterns. ### Key review finding from GPRS II implementation - GPRS II total cost estimated at US$8.063 billion. - Intended GPRS II allocation: 35% Private Sector Competitiveness; 55% Vigorous Human Resource Development; 10% Governance and Civic Responsibility. - Planned resource envelope (GPRS II assumptions): budgetary resources average 35% of annual GDP; domestic revenue about 23% of GDP; grants about 5.5% of GDP; remaining 6.5% from divestiture receipts, programme loans and exceptional financing. - Outturn (GPRS II four-year period): budgetary resources averaged 38.4% of annual GDP; domestic revenue 22.8% of GDP; grants 5.6% of GDP; remaining 10% from divestiture receipts, programme loans and exceptional financing. - Annual Budget 2008 outturn: overall resource allocation (Services and Investment) US$9,105.14 (about 13% increase over planned GPRS II requirements); nearly 60% from GOG sources; 40% from Development Partners. - Actual spending distribution (2008): 45.2% Private Sector Competitiveness; 32.5% Human Resource Development; 21.8% Governance and Civic Responsibility. - Conclusion: resources prioritized away from Human Resource Development in favour of Private Sector Competitiveness and Governance and Civic Responsibility; misalignment due to both GOG and DPs. ### Overall resource gap and proposed financing mechanisms - Overall financing gap: US$12,500.676 million (GH¢18,125.980 million) over 2010–2013; average gap US$3,125.169 million per annum; represents about 52.3% of total requirement. - Proposed mechanisms to address gap: - identifying new financing sources including targeted bilateral partnerships in state-to-state arrangements; - vigorous promotion of Public-Private Partnership (PPP); - introducing new domestic revenue enhancing measures to widen the revenue base; - scaling up donor inflows; - accelerate capacity expansion of domestic financial markets and targeted support/incentives for the capital market. --- ### Strengthening linkage between GSGDA and the national budget (expenditure management) - Mechanisms to strengthen: - preparation of well costed medium term sector development plans (SMTDPs) based on the GSGDA and MTEF linkage; - ensure MDAs objectives properly aligned to GSGDA strategic objectives; - ensure only activities related to GSGDA receive budgetary resources via enforced incentives for approved SMTDPs; - consolidate and rationally allocate financing for GSGDA implementation and ensure effective annual tracking of resources; - ensure effective Cash Management and Public Financial Management Systems including: - establish Cash Management System for monthly cash ceilings for MDAs; - establish a Treasury Single Account linking all government accounts; - implement Ghana Integrated Financial Management Information Systems (GIFMIS). - National Expenditure Tracking System (NETS) identified as inefficient; data-capture formats vary across MOFEP, BOG, CAGD, DACF Secretariat, and MLGRD — reconciliation and clearer institutional reporting arrangements required. ### Guidelines for costing SMTDPs and aggregation rules - Costing scope: limit activities to Service (Item 3) and Investment (Item 4); Personnel Emoluments (Item 1) and Administration (Item 2) excluded. - Input valuation: Total Input Cost = Unit Cost × Quantity × Frequency. - Aggregation sequence: Input Costs → Activity Cost → Strategy cost → Policy Objective Cost → Key Focus Area Cost → Thematic Area Cost. - Cross-cutting issues: avoid double counting; costs for MDA roles in cross-cutting objectives to be accounted by relevant MDA. - Cost centres listed (1–35) correspond to Annual National Budget cost centres. --- ### Resource requirement overview and thematic-year profile (selected figures) - Grand total by year (Million US$): - 2010: 3,322.250 (100.00%) - 2011: 6,584.238 (100.00%) - 2012: 6,834.916 (100.00%) - 2013: 7,150.056 (100.00%) - Total: 23,891.459 (100.00%) - Thematic totals (Million US$): - I. Macro stability — Total: 502.873 (2.10%) - II. Private sector competitiveness — Total: 1,906.211 (7.98%) - III. Agriculture & natural resource management — Total: 906.354 (3.79%) - IV. Infrastructure & human settlements — Total: 9,418.415 (39.42%) - V. Energy, oil & gas — Total: 3,601.438 (15.07%) - VI. Human development, productivity & employment — Total: 6,018.748 (25.19%) - VII. Transparent & accountable governance — Total: 1,537.419 (6.44%) - Distribution dynamics: resource flow expected to be evenly distributed with average resource requirement about 28.7% per annum; 2010 expected to be lowest at about 14% increasing to 29.9% in 2013. ### Thematic-specific allocation highlights (selected) - Infrastructure and human settlements (Total US$9,418.415): - 55.2% for efficient and integrated transport infrastructure; - 20.5% for improved water and adequate sanitation; - 11.9% for affordable housing and shelter; - 12.4% for science and technology, ICT, human settlement development and recreational infrastructure. - Energy, oil and gas (Total US$3,601.438): - 21.5% for infrastructure and human resource to support oil and gas industry; - 78.5% for reliable and adequate energy supply to households and industry. - Human development (Total US$6,018.748): - 61.3% for quality health care and nutrition; - 33.6% for quality education; - 5% for productivity and employment programmes, youth and sports, population management, social protection and safety nets. - Transparent and accountable governance (Total US$1,537.419): breakdown includes 26.8% public policy management/public sector reforms; 20.6% public safety and security; 19.8% democracy and institutional reforms; remaining shares for special development areas, local governance, evidence-based decision making, and complementary governance areas. --- ### Resource envelope, fiscal aggregates and financing mix (selected figures) - Budgetary spending excluding net lending projected at average 40.3% of annual GDP over 2010–2013. - Domestic revenue sources including oil revenue: 31.8% of GDP on average. - Grants: about 4.3% of GDP on average. - Programme loans and exceptional financing arrangements: expected 4.2% of GDP. - About 86.5% of total receipts expected from domestic sources (tax and non-tax). - Revenue from oil and gas over the plan period expected not less than 6% of domestic receipts. - TAX REVENUE (Million GH¢): 2010: 6,072.243; 2011: 7,712.451; 2012: 9,505.768; 2013: 10,731.304. - TOTAL REVENUE (Million GH¢): 2010: 8,264.013; 2011: 9,299.521; 2012: 11,441.281; 2013: 12,952.985. - TOTAL REVENUE & GRANTS (Million GH¢): 2010: 9,628.527; 2011: 10,601.123; 2012: 12,748.154; 2013: 14,442.108. - Total Oil Revenue (Million GH¢): 2010: 0.000; 2011: 584.039; 2012: 1,485.745; 2013: 1,431.498. - Expenditure aggregates (Million GH¢): - RECURRENT: 2010: 7,625.049; 2011: 8,924.861; 2012: 10,059.795; 2013: 10,471.373. - CAPITAL EXPENDITURE: 2010: 2,839.498; 2011: 3,745.903; 2012: 3,645.366; 2013: 4,427.882. - TOTAL EXPENDITURE & NET LENDING: 2010: 10,777.694; 2011: 12,670.764; 2012: 14,071.881; 2013: 15,278.414. - Financing (Million GH¢): - FINANCING totals: 2010: 1,945.050; 2011: 2,336.914; 2012: 1,667.501; 2013: 1,189.458. - Borrowing totals: 2010: 1,110.947; 2011: 1,618.716; 2012: 1,377.094; 2013: 1,099.376. - Project loans: 2010: 695.547; 2011: 1,374.217; 2012: 1,210.779; 2013: 933.061. - Programme loans: 2010: 415.400; 2011: 244.499; 2012: 166.315; 2013: 166.315. - Exchange Rate (GH¢ per US$): 2010: 1.43; 2011: 1.45; 2012: 1.45; 2013: 1.45. --- ### Resource gap analysis (exact figures) - SERVICES (Million US$) by year: - 2010: 285.740; 2011: 276.279; 2012: 326.753; 2013: 365.210; Total SERVICES: 1,253.982. - INVESTMENT (Million US$) by year: - 2010: 1,985.663; 2011: 2,583.381; 2012: 2,514.045; 2013: 3,053.711; Total INVESTMENT: 10,136.801. - Domestic Financed (excluding statutory) totals (Million US$): 2010: 916.833; 2011: 1,094.829; 2012: 1,620.219; 2013: 1,832.007; Total: 5,463.889. - Foreign Financed totals (Million US$): 2010: 1,068.830; 2011: 1,488.552; 2012: 893.826; 2013: 1,221.705; Total: 4,672.913. - SERVICES + INVESTMENT totals (Million US$) by year: - 2010: 2,271.403; 2011: 2,859.660; 2012: 2,840.798; 2013: 3,418.921; Total: 11,390.783. - ESTIMATED COST OF THE GSGDA (Million US$) by year: - 2010: 3,322.250; 2011: 6,584.238; 2012: 6,834.916; 2013: 7,150.056; Total: 23,891.459. - RESOURCE GAP (Million US$) by year: - 2010: 1,050.847; 2011: 3,724.577; 2012: 3,994.118; 2013: 3,731.134; Total RESOURCE GAP: 12,500.676. ### Financing strategy directions (selected) - New financing sources / bilateral state-to-state partnerships: target ~45.2% of capital investment via special financing arrangements (Sino-Ghana, Korea-Ghana, PPPs). - Public-Private Partnerships: leverage private finance, technology, risk-sharing and reduce pressure on national budget. - Scaling-up donor inflows: strengthen country financial management and value-for-money mechanisms; MDBS constitutes about 30% of donor inflows. - Revenue-enhancing measures: introduce a single revenue authority; improve VAT collection; taxation of natural resources; reduction of tax exemptions. - Expansion of domestic financial markets: accelerate financial sector reforms; increase banking sector capitalization; deepen incentives for Ghana Stock Exchange to mobilize long-term private capital. --- ### Sectoral highlights — Agriculture, Energy/Oil & Gas, Infrastructure, Human Development, Governance (selected interventions and budgets) - Agriculture and natural resources (policy and interventions): - Objectives include improved agricultural productivity; increased competitiveness and market integration; risk reduction; promotion of crops, livestock, fisheries; irrigation and smallholder productivity. - Selected interventions: Agricultural Development Fund; National Food Buffer Stock Company; Ghana Commodities Exchange; subsidies for improved seeds and inputs; irrigation rehabilitation including Accra Plains. - Energy, Oil and Gas (Theme V totals and line items in Million US$): - Theme V total by year: 2010: 281.699; 2011: 1,257.948; 2012: 1,182.371; 2013: 879.421; Total: 3,601.438. - Oil and Gas Development (line-item): 2010: 23.069; 2011: 342.229; 2012: 203.838; 2013: 204.697; Total: 773.833. - Major policy allocations within Oil and Gas Development: - Create jobs from oil and gas: 2010: 20.700; 2011: 339.750; 2012: 200.700; 2013: 200.700; Total: 761.850. - Environmental sustainability compliance: Total: 4.000. - Revenue management, economic transformation, institutional capacity: totals of 4.960; 1.583; 1.440 respectively. - Energy Supply to Support Industries and Households (line-item): 2010: 258.630; 2011: 915.719; 2012: 978.533; 2013: 674.724; Total: 2,827.606. - Ensure increased access to efficient, reliable and adequate energy supply: Total: 2,718.449. - Diversify national energy mix: Total: 109.156. - Infrastructure and human settlements (selected interventions): - Transport priorities: rehabilitate rail; modernize Takoradi Harbour; reconstruct Eastern and Western corridor roads; develop new deep sea port in Western Region; implement Bus Rapid Transit (BRT); explore PPPs and concessions. - Science, Technology & Innovation: establish two national science and technology theme parks; Young Researchers Programme; Science and Technology Fund; mathematics, science and technology scholarship scheme. - ICT: national e-Governance programme; broadband high speed internet in every district; public ICT centres. - Water & Sanitation: support new and rehabilitated water facilities; public-private partnerships for waste management; Strategic Environmental Sanitation Investment Plan. - Human settlements: national housing initiative; promote local building materials; legal framework for condominiums; slum upgrading; National Human Settlements Commission or National Housing Board proposed. - Human development, employment and productivity (Theme VI totals and selected line items in Million US$): - Theme VI totals by year: 2010: 1,109.410; 2011: 1,441.495; 2012: 1,577.153; 2013: 1,890.690; Total: 6,018.748. - Education (Total: 2,023.816): 2010: 413.792; 2011: 543.287; 2012: 511.576; 2013: 555.161. - Health (Total: 3,687.897): 2010: 645.343; 2011: 789.848; 2012: 990.200; 2013: 1,262.505. - Health policy allocations include maternal, neonatal, child and adolescent health; governance and efficiency; prevention and control of diseases; expand mental health services. - Transparent and accountable governance (Theme VII totals and selected priorities): - Theme VII totals by year: 2010: 214.076; 2011: 460.711; 2012: 448.417; 2013: 414.216; Total: 1,537.419. - Priority areas: deepen democracy and institutional reform; local governance and decentralization; public policy management and public sector reforms; development communication; women’s participation; rule of law and justice; public safety and security; corruption and economic crimes; evidence-based decision making; international relations. --- ### Selected social and cross-cutting program figures - HIV, AIDS, STDs, and TB (Million US$): - Ensure reduction of new transmissions: 2010: 2.482; 2011: 2.496; 2012: 3.855; 2013: 4.014; Total: 12.847. - Reduce impact of morbidity and mortality: 2010: 2.339; 2011: 2.354; 2012: 3.723; 2013: 3.882; Total: 12.298. - Management of response to promote healthy lifestyles: 2010: 0.136; 2011: 0.136; 2012: 0.129; 2013: 0.129; Total: 0.530. - Cross-cutting/small-scale interventions: 2010: 0.007; 2011: 0.006; 2012: 0.003; 2013: 0.003; Total: 0.019. --- *Source: EXECUTIVE SUMMARY, Volume II — Ghana Shared Growth and Development Agenda (GSGDA); _cr12204 (IMF staff report excerpts and MTEF Database, MOFEP, 2010)._* ### EXECUTIVE SUMMARY ...................................................................................................... ### EXECUTIVE SUMMARY ### Overview - This document is Volume II of the Ghana Shared Growth and Development Agenda (GSGDA) and represents the costing framework for effective implementation of the policies and strategies outlined in the GSGDA. - It reviews the costing framework used under GPRS II, identifies constraints in resource allocation and actual expenditures, and proposes strategic focus of expenditure outlays under GSGDA. - The costing framework is organized around seven thematic areas of the GSGDA. ### Strategic focus (medium term) - Goal: lay the foundation for structural transformation of the economy within the decade ending 2020 through industrialization (especially manufacturing) based on: - modernized agriculture; - sustainable exploitation of natural resources (minerals, oil and gas); - rapid infrastructural and human development; - application of science, technology and innovation. - Prioritized expenditure areas: Agriculture; Infrastructure (including energy, oil and gas); Water and sanitation; Health; Education (including ICT, Science, Technology and Innovation). - Thematic areas of the MTDPF: - Ensuring and sustaining macroeconomic stability; - Enhanced competitiveness of Ghana’s private sector; - Accelerated agricultural modernization and natural resource management; - Oil and gas development; - Infrastructure and human settlements development; - Human development, employment and productivity; - Transparent and accountable governance. ### Total estimated cost and allocation by thematic area - The total cost of implementing the GSGDA is estimated at US$23,891.459 million (GH¢34,642.62 million). - Allocation by thematic area: - Ensuring and sustaining macroeconomic stability — GH¢729.17 (US$502.873) — 2.10 percent - Enhanced competitiveness of Ghana’s private sector — GH¢2,764.01 (US$1,906.211) — 7.98 percent - Accelerated agricultural modernization and natural resource management — GH¢1,314.21 (US$906.354) — 3.79 percent - Infrastructure and human settlements development — GH¢13,656.70 (US$9,418.415) — 39.42 percent - Oil and gas development — GH¢5,222.09 (US$3,601.438) — 15.07 percent - Human development, employment and productivity — GH¢8,727.18 (US$6,018.748) — 25.19 percent - Transparent and accountable governance — GH¢2,229.26 (US$1,537.419) — 6.44 percent - TOTAL — GH¢34,642.62 (US$23,891.459) ### Costing coverage and governance - Costs related to enabling environment for effective plan preparation and implementation, and ensuring effective national monitoring and evaluation, are captured mostly under the Governance thematic area. - The resource envelope comprises both domestic and external sources for financing the GSGDA. ### Resource gap and proposed financing mechanisms - Overall financing gap: US$12,500.676 million (GH¢18,125.980 million). - Expected financing mechanisms to address the resource gap: - identifying new financing sources including targeted bilateral partnerships in state-to-state arrangements; - vigorous promotion of Public-Private Partnership; - introducing new domestic revenue enhancing measures to widen the revenue base; - scaling up donor inflows; - accelerate the capacity expansion of the domestic financial markets and targeted support and incentives for the capital market. ### Review of the GPRS II expenditure framework (summary findings) - GPRS II total cost estimated at US$8.063 billion. - Intended thematic allocation under GPRS II: - 35% to Private Sector Competitiveness; - 55% to Vigorous Human Resource Development; - 10% to Governance and Civic Responsibility. - Planned resource envelope under GPRS II assumptions: - budgetary resources average 35% of annual GDP; - domestic revenue sources about 23% of GDP; - grants from bilateral and multilateral sources about 5.5% of GDP; - remaining 6.5% from divestiture receipts, programme loans and exceptional financing arrangements. - Outturn over the GPRS II four-year period: - budgetary resources constituted an average of 38.4% of annual GDP; - domestic revenue sources made up 22.8% of GDP; - grants from bilateral and multilateral sources constituted about 5.6% of GDP; - remaining 10% from divestiture receipts, programme loans and exceptional financing arrangements. - Annual Budget 2008 outturn for GPRS II implementation: - overall resource allocation (Services and Investment) amounted to US$9,105.14 (about 13% increase over planned GPRS II requirements). - Nearly 60% of overall resources spent were from Government of Ghana (GOG) sources; remaining 40% from Development Partners (DPs). - Distribution of resources by thematic area (actual spending): - 45.2% to Private Sector Competitiveness; - 32.5% to Human Resource Development; - 21.8% to Governance and Civic Responsibility. - Key conclusion: resources were prioritized away from Human Resource Development thematic area in favour of Private Sector Competitiveness and Governance and Civic Responsibility during implementation. - Sources of misalignment: both GOG and DPs — DPs prioritized Private Sector Competitiveness and Good Governance; GOG budget approvals prioritized Human Resource Development but actual releases favoured Private Sector Competitiveness. ### Document structure (Volume II) - Volume II provides the four-year costing framework and shows the indicative financial requirements for effective implementation of the policies and strategies outlined in the GSGDA. - The costing framework is presented by the seven thematic areas listed above. *Source: EXECUTIVE SUMMARY, Volume II — Ghana Shared Growth and Development Agenda (GSGDA)* ### 1.4 GSDA Expenditures ### _cr12204 - 1.4 GSDA Expenditures ### Strengthening linkage between GSGDA and the national budget - Mechanisms to be strengthened to link the GSGDA to the annual national budget and to manage public expenditure through: - preparation of well costed medium term sector development plans based on the GSGDA; - ensuring that all the objectives of MDAs are properly aligned to the strategic objectives of the GSGDA; - ensuring that only activities related to the GSGDA receive budgetary resources; - ensuring that resources for financing expenditures associated with the implementation of the GSGDA are consolidated and rationally allocated; - ensuring that resources for financing GSGDA implementation can be effectively tracked on an annual basis; - ensuring effective Cash Management and Public Financial management Systems. ### Preparation of well costed medium term sector development plans (MTEF linkage) - The MTEF mechanism provides the linkage between sector development plans, GSGDA priorities and the annual budget. - The design of the MTEF is largely based on well-prepared and fully costed sector plans; shortcomings in developing these plans will render the MTEF dysfunctional and weaken linkages. ### Alignment of MDAs objectives to GSGDA strategic objectives - The MTEF will be updated annually with MDAs policy objectives and cost outlays to ensure proper alignment. ### Ensuring budgetary resources finance only GSGDA priorities - Existing budgeting processes lack mechanisms to ensure that only MDAs with approved Sector Medium Term Development Plans (SMTDP) receive budgetary allocations and that only programmes and projects from approved SMTDPs receive resources. - An incentive mechanism will be developed and effectively enforced to ensure that only MDAs with approved SMTDPs receive budgetary allocation. ### Effective tracking of resources for GSGDA implementation - The National Expenditure Tracking System (NETS) has not been efficient. - Data-capture formats from key national institutions (MOFEP, BOG, CAGD and DACF Secretariat, and MLGRD) vary, making reconciliation difficult. - Institutional arrangements and reporting mechanisms will be clearly defined for effective tracking of public funds. ### Cash management and financial management systems - A Cash Management System will be established to provide frequent and up-to-date monitoring of revenues, expenditures and cash balances to support monthly cash ceilings for MDAs. - A Treasury Single Account will be established to link all government accounts for efficient monitoring and use of cash balances. - A user-driven Ghana Integrated Financial Management Information Systems (GIFMIS) will be implemented to further improve public financial management. ### Processes for costing the GSGDA - The costing exercise process: - involved desk-top research, data capturing, technical analysis, and validation by key stakeholders; - lasted for a period of four months, beginning in July, 2010 and ending in November. - A task team comprising technical experts in public finance, national budget preparation and execution, MTEF, and national development planning led the process. - The process was participatory: MDAs provided inputs; the task team provided technical guidance and final analysis. - Costing guidelines were issued to MDAs, informed by reviews of GPRS I & II frameworks and national budget preparation guidelines; the guidelines specified costing methodology, qualifying activities, identification of inputs, per unit cost application, and cost aggregation methods to ensure uniformity. - Inception meeting organized with MDAs to discuss guidelines and timelines. - MDAs were requested to submit indicative costs within two weeks after the inception meeting; technical support provided as needed. - All costing inputs received were forwarded to Ministry of Finance and Economic Planning for capture into the MTEF database. - Validation exercises ensured captured data matched MDA submissions. - Review objectives during validation included eliminating double counting, under-counting and over-costing; ensuring appropriate sequencing of activities; and prioritizing strategic, catalytic and transformational initiatives. - MDAs re-submitted revised costings after task team comments; re-submissions were re-captured into the MTEF database. - Final MTEF outputs were reviewed against absorptive capacities and adjusted when necessary using MDAs historical expenditure patterns from the Controller and Accountant-General database and average completion time of major national projects as proxies. - The final MTEF outputs were used as the basis for analysis of resource requirements for the implementation of the medium term national development policy framework, 2010 – 2013. ### Document structure (as provided) - The document is presented in four chapters: - Chapter 1: Introductory chapter. - Chapter 2: Summary of GSGDA policies and strategies for 2010 - 2013. - Chapter 3: Estimates of resource requirements for implementation of the policies and strategies. - Chapter 4: Analysis of the resource envelope and the financing gap. *Source: _cr12204 - 1.4 GSDA Expenditures* ### 2.4 Accelerated agricultural modernization and natural resource management ### 2.4 Accelerated agricultural modernization and natural resource management ### Agricultural sector: objectives and role - Agriculture dominated by "subsistence small holder production units" with weak linkages to industry and services; characterized by "low productivity, low income and un-competitiveness in production, processing and distribution." - Agriculture expected to "drive the new development agenda" because of its role in generating income and providing subsistence for the majority of the people. - Modernised agriculture is expected to underpin economic transformation through: - job creation; - increased export earnings; - food security; - supply of raw materials for value addition and rural development; - significant reduction in the incidence of poverty. - Complementary requirement: "an effective natural resource management and environmental governance regime." ### Medium-term broad objectives for agriculture - improved agricultural productivity; - increased agricultural competitiveness and enhanced integration into domestic and international markets; - reduced production and distribution risks/ bottlenecks in agriculture and industry; - promote selected crop development for food security, export and industry; - promote livestock and poultry development for food security and income; - promote fisheries development for food security and income; - improved institutional coordination for agricultural development. ### Specific medium-term interventions (selected) - Scaling-up support for agricultural producers through the establishment of an Agricultural Development Fund; - Establishment of the National Food Buffer Stock Company and Ghana Commodities Exchange to enhance the marketing of agricultural produce and incomes of farmers; - Provision of subsidies for the procurement of improved seeds, grade breeders and stocks, pesticides, fertilizers and other inputs; - Promotion of selected crop development for food security and for export; - Supporting the production of adequate quantities of agricultural raw materials focusing on shea nuts, dawadawa, cotton, pineapple, bananas, rubber, vegetables, and ornamental plants to feed existing local firms as well as new ones; - Supporting livestock farmers to substantially increase the scale of production, including larger scale production of guinea fowls; - The development of aquaculture; - Promotion of small holder productivity; - Promotion of irrigation-based agriculture with the rehabilitation of existing facilities and the phased irrigation of the Accra Plains. ### Natural resource endowment and pressures - Ghana "is endowed with abundant natural resources" which must support agricultural and industrial development. - Rapid population growth is exerting "immense pressure on national resources" and creating waste management problems in major towns and cities. - Rapid loss of biological diversity and wildlife populations noted. - Key priority areas for medium-term policy interventions: - Environmental Degradation (land, forest, etc) - Biodiversity and Protected Areas - Coastal Erosion and Marine Ecosystem - Wetlands and Water Resources Management - Climate Variability and Change ### Environmental Degradation (land, forest, etc): medium-term focus - application of appropriate agriculture intensification techniques that provide irrigation infrastructure and promote correct soil conservation techniques; - encourage afforestation of degraded forests and off-reserve areas, including the adoption of a medium to long-term plan for public and private programmes; - encourage investments in industrial scale tree farming in specific depleted forest reserves and on degraded land, and in commercial forestry outside forest reserves and along dried up and flowing streams and rivers; - monitoring the activities of both large and small scale mining companies in order to protect the environment; - strengthen and enforce existing environmental laws and regulations including the passage of regulations under the current Minerals and Mining Act 2006 (Act 703); - vigorously pursue the reclamation and plantation development measures in areas mined-out especially by illegal miners; - ensuring environmental stewardship by mining companies; - introduce and enforce economic instruments for mining sector environmental management. ### Biodiversity and Protected Areas: key strategies - maintaining and enhancing the protected area system; - strengthening the legal framework on protected areas; - implement national buffer zone policies for rivers and protected areas, incorporating the education of potential users on dangers their activities pose to wildlife and water bodies; - fast-tracked the identification of river basins and corridors best suited for connectivity and acquisition of lands that could possibly serve as landscape corridors; - promulgating strict national legislation on initiation of bush fires to enable District Assemblies to enforce bye-laws on bush fires. ### Coastal Erosion and Marine Ecosystem: interventions - investing directly in control structures and construction; - establishment of gabions and boulder revetments to arrest erosion; - promotion of mangrove forests replanting and planting of other vegetative cover to contain erosion; - encouraging investments in upgrading and maintenance of waste treatment and small-scale waste collection facilities in order to reduce the impacts of pollution on the coastal environment; - designing appropriate policies to promote recycling, recovery, re-use and reduction of all types of waste; - monitoring and enforcing regulations contained in the newly enacted Legislative Instrument against inappropriate fishing methods, such as the use of light for fishing and the use of small mesh size; - strengthening enforcement against illegal fishing by trawlers; - strengthening institutional capacity for research, monitoring and enforcement of all bye-laws; - improving coastal zone management by ensuring proper location of industries in developing coastal towns; - establishing a Coastal Zone Commission with strong stakeholder participation. ### Wetlands and Water Resources Management: policy measures - promotion of decentralization and participatory wetlands management; - acceleration of national capacity building, and institution of appropriate legal and institutional framework to regulate the sustainable use of wetlands; - supporting comprehensive wetlands inventory, backed by research and monitoring; - instituting mechanisms to restore and rehabilitate degraded and badly altered wetlands; - establishing appropriate institutional structures for enhanced water resources management.; - ensuring that planning for water resources is made with due recognition of “environmental flow” requirements as well as the adoption of sustainable practices that avoid damage to critical natural capital and irreversible ecological processes; - promoting partnership with the private sector for the protection and conservation of water resources. ### Climate Variability and Change: policy measures - identifying and enhancing early warning systems; - enhance national capacity to adapt to climate change through improved land use management; - adapt to climate change through enhanced research and awareness creation. ### 2.5 Energy, Oil and Gas Development (policy focus and interventions) - Priority: increase access of households and industry to reliable and adequate energy supply, and diversify the national energy mix to include the use of indigenous sources of energy. - Actions to achieve objectives: - rehabilitate and expand energy infrastructure to ensure adequate and reliable supply of energy and increased access to modern forms of energy to the poor and vulnerable through extension of the national electricity grid; - promote energy efficient technologies that safeguard the health of domestic users especially women and children. - Oil and gas development priorities: - develop oil and gas resources so the industry "becomes a major anchor for national growth and development"; - use oil and gas to diversify the economy and build capacity to support a modern industrial society; - increase access to petroleum products at prices that support development objectives while protecting the environment; - implement a transparent revenue management policy to ensure the oil and gas resources benefit Ghanaians; - enact a local content law to optimise use of local goods, services, and associated resources in all segments of the oil and gas industry value chain; - give priority to redevelopment of existing settlements as part of new urban settlements associated with oil and gas developments. - Investment and institutional implications: - attracting requisite investment capital into oil and gas exploration and development remains important given "huge investment requirements"; - oil and gas industry expected to strengthen capacity of local financial institutions to compete with foreign counterparts and to improve domestic resource availability for further exploration and establishment of strategic industries. - Key policy interventions to support objectives: - provide a conducive legal, fiscal and regulatory environment to attract investors into the energy sector; - encourage Ghanaian investors to use the capital markets, including the Ghana Stock Exchange, to raise financing for investments in the energy sector; - establish transparent and non-discriminatory practices in the implementation of rules and regulations; - ensure efficient and transparent pricing regimes for energy services. *Source: IMF staff report section 2.4, "Accelerated agricultural modernization and natural resource management."* ### 2.6 Infrastructure and human settlements development ### 2.6 Infrastructure and human settlements development ### Transportation (including road, rail, air, maritime and inland transport) - Key objectives of the transport sector policies over the medium term: - establishing Ghana as a transportation hub for the West African Sub-Region - creating and sustaining an efficient transport system that meets user needs; - integrating land use, transport planning, development planning and service provision; - creating a vibrant investment and performance-based management environment that maximise benefits for public and private sector investors; - developing and implementing comprehensive and integrated Policy, governance and institutional frameworks; - ensuring sustainable development in the transport sector; and - developing adequate human resources and apply new technology. - Road sector interventions: - prioritize the maintenance of existing road infrastructure to reduce vehicle operating costs (VOC) and future rehabilitation costs; - improve accessibility by determining key centres of population, production and tourism; - re-instate labour-based methods of road construction and maintenance to improve rural roads and maximize employment opportunities; - implement urban transport projects such as the Ghana Urban Transport Project (GUTP) including the Bus Rapid Transit (BRT) and school busing schemes; - explore Public-Private Partnerships (PPPs) and concession options for investment in transport infrastructure and services (single and multi-modal options); - build capacity of local road contractors and consultants, and ensure their proper classification and use; and - develop the institutional and regulatory arrangements for ensuring the most effective and efficient movement of freight and passengers. - Special initiatives: - re-construct, rehabilitate or modernise as appropriate, the Eastern and Western Corridors, as well as the Bawku-Tumu-Lawra and Tamale-Fufulso-Sawla-Wa roads; - construct a natural resource road network to upgrade the rural roads that support Ghana’s production infrastructure. - Rail sector: - rehabilitate, in some cases totally re-build in others, upgrade, modernize and expand the existing railway network to support accelerated industrial growth; - reduce pressure on urban transportation in Accra, Kumasi, Tema and Sekondi-Takoradi and provide industrial freight haulage to new oil and gas-driven industries; - ease pressure and congestion on the roads and highways. - Air sector: - sustain and progressively improve facilities at the national airport in Accra to make Accra a West African hub and gateway to grow exports and tourism; - encourage domestic air services through tax incentives for locally-based airlines; - ensure compliance with, and sustain international safety and security standards at all airports. - Maritime and inland water transport: - develop a modern deep sea port at a suitable location in the Western Region to serve the oil and gas services industry and new processing industries; - rehabilitate and upgrade the existing Takoradi and Tema ports; - transform the Volta Lake Transport system into an effective transport hub by addressing dredging, removal of tree stumps, and procurement of additional boats and ferries; - complete the Debre Marine Project to build a mini-harbour at Debre on the Lake to enable all year round movement of bulk petroleum products from Akosombo to the North via pipelines and barges to reduce costs and environmental consequences of road haulage. ### Science, Technology and Innovation to Support Productivity and Development - Thrust and objectives: - Government has prioritized Science, Technology and Innovation (STI) as a principal vehicle to drive Ghana’s development agenda. - promote the application of Science, Technology and Innovation in all sectors of the economy; and - strengthen the appropriate institutional framework to promote the development of scientific and technological research. - Policy interventions: - encouraging the diffusion and transfer of technology; - promoting the establishment of two national science and technology theme parks: one in Cape Coast and the other on the Akuapim-Ridge; - initiating a Young Researchers Programme to stimulate interest in research and technological innovation among pupils in second cycle schools; - promoting and establishing national systems of innovation to support the technology development cycle; - establishing a Science and Technology Fund to support research activities in tertiary and research institutions; - providing support for businesses to adopt R&D as a critical component of production; - providing incentives to strengthen the linkage between research and industry, and facilitate their collaboration; and - establishing a mathematics, science and technology scholarship scheme to support brilliant but needy students who study science, mathematics and technology-based subjects at the second cycle and tertiary levels of education. ### Information and Communications Technology (ICT) - Key policy objectives: - promote rapid development and deployment of the national ICT infrastructure; - strengthen the institutional and regulatory framework for managing the ICT sector; - promote the use of ICT in all sectors of the economy; and - facilitate the provision of quality meteorological data and forecast in support of weather sensitive sectors of the economy. - Strategic interventions: - facilitating the development of the ICT sector through the use of local capabilities in STI; - providing affordable equipment/accessories to encourage the mass use of ICT; - encourage ICT training at all levels and ensure that the broadband high speed internet connectivity is available in every district to increase adequate coverage of ICT infrastructure; - implement a national e-Governance programme by deploying ICT infrastructure in all Government institutions; - periodically review the existing institutional and legal framework to ensure effective meteorological service delivery and forecasting; - utilization in the process of education and in the provision of health services at all levels through the gradual introduction of electronic health records; and - the establishment of public centres to provide access to computers and the internet for those who do not own ICT equipment. ### Water and Sanitation - Key objectives: - ensuring efficient management of water resources; accelerating the provision of safe and affordable water; - accelerating the provision and improve environmental sanitation; - ensuring the implementation of health education programmes as a component of all water and sanitation programmes; - improving sector coordination through a sector-wide approach to water and environmental sanitation delivery; and - improving sector institutional capacity. - Strategic interventions: - enhancing trans-boundary water resources cooperation and management; - develop and implement legislative instruments for efficient water resources management; - develop mechanisms and measures to support, encourage and promote rainwater harvesting; - improved data collection and management for water resources assessment and decision-making; - support the provision of safe water in rural and urban areas with investments for the construction of new facilities as well as the rehabilitation and expansion of existing water facilities; - strengthen public-private and NGO partnerships in water provision as well as improve community-owned and managed water supply systems; - facilitate the extension of distribution networks especially to low income consumers; - support public-private partnerships in solid and liquid waste management; - promote cost-effective and innovative technologies for waste management; - implement health education as a component of all water and sanitation programmes, through incorporation of hygiene education in all water and sanitation programmes; - adoption of a sector-wide approach to planning, implementation, monitoring and evaluation of sector activities; - development and implementation of a Sector Strategic Development Plan; - develop a Strategic Environmental Sanitation Investment Plan; - implementation of the National Environmental Sanitation Strategic and Action plan; and - Strengthen Water Directorate and the Environmental Sanitation and Hygiene Directorate with adequately trained personnel and other resources to enable them take ownership and lead roles of the sector. ### Human Settlements - Overall goal: - ensure that all organized human activities within cities, towns and villages are undertaken in a planned and spatially determined manner to bring about equity and enhance socio-economic development. - Policy focus areas: - housing and shelter; settlement disaster prevention; hierarchy of human settlements; and institutional arrangement for human settlements management. - Housing and shelter strategies: - launch a new national housing initiative to begin the rationalisation of the housing market in order to provide affordable housing for Ghanaians; - promote the manufacture and use of local building materials and appropriate technologies in housing; - establishing standards for local construction materials to guarantee the appropriate use of these materials for construction; - ensuring the enforcement of standards for architectural designs and building codes; - establishment of a legal framework to support the construction of condominiums; - promote savings and investments in housing; - review and implement the existing rural housing policy; - promote erosion control and prevention schemes, and drainage construction programmes; - foster the growth of settlements which can support the rural economy and its transformation; and - promote self-help building schemes organized by trade associations. - Settlements disaster prevention strategies: - proper planning of drainage systems; - undertake educational and sensitization programmes to make Ghanaians more conscious of how to prevent and manage disasters; - review and modernize building codes; and - strengthen institutions to enforce building and planning laws. - Urban system and spatial planning: - establish a new hierarchy of urban centres, with clearly defined set of functions for each hierarchy having; - physically integrate all regions and districts, especially their respective capitals; and - promote accelerated growth of medium-sized towns to large urban centres. - Institutional arrangements: - establish a framework for effective coordination and development of the capacities of key national institutions for effective planning of human settlements; - in the medium-term establish a National Human Settlements Commission or a National Housing Board to coordinate the activities of all institutions involved in housing development. ### National Land Use - Medium-term priority interventions address urban development and management; rural development and management; and slum upgrading. - Urban development and management interventions: - introducing a modern street naming and property address system; - providing adaptive space in the urban areas for commercialization; - reinforcing spatial planning in urban management; - ensuring linkages between urban and rural areas; and - the institution of a nationwide urban renewal programme. - Rural development and management interventions: - improve the supply of a critical mass of social services and infrastructure to meet the basic needs of the people; - establishment of rural service centres to promote agriculture and agro-based industries; and - attraction of investment for the growth and development of the rural areas. - Slum upgrading interventions: - strengthening the legal framework on urban development; - establishment of guidelines for the planning and development of urban areas; - improving upon existing infrastructure and facilities within slum communities; and - introduction of major slum renewal programmes. *Source: _cr12204 - 2.6 Infrastructure and human settlements development_* ### 2.7 Human development, employment and productivity ### 2.7 Human development, employment and productivity ### Education - Objectives: - increased equitable access to, and participation in education at all levels; - improved quality of teaching and learning; - bridging the gender gap in access to education; - improved access to quality education for persons with disabilities; and - improved management of education service delivery. - Key policy interventions to improve equitable access to, and participation in quality education: - the provision of infrastructural facilities for schools across the country particularly in deprived areas; - strengthening of enrolment drives in communities; - promoting collaboration with the private sector to expand school facilities within the set guidelines for the establishment of schools; and - enhancing teaching and learning in schools through increasing the deployment of trained teachers. - Key policy measures to improve quality of teaching and learning: - upgrading training facilities in the colleges of education; - upgrading the qualifications of staff; - introducing a national programme of education quality assessment and increasing management capacity to support and implement it; - implementing a diversified mix of incentives, including housing, training and professional development; - a clear career structure through the establishment of a Teacher Coordinating and Licensing body for teacher motivation and retention; - strengthening of supervision and management in schools to constantly monitor quality with the support of district assemblies, communities and parents; and - providing academic counseling services in schools. - Key policy measures to bridge the gender gap in access to education: - expanding the incentive schemes to increase girls’ enrolment, retention and completion particularly in deprived areas; - enforcing a ‘no-tolerance’ policy for sexual harassment and publicized disciplining of recalcitrant teachers; - intensifying community mobilization and sensitization to create awareness of the importance of girls’ education; and - re-introducing science and technology workshops for girls in second cycle institutions. - Key policy measures to improve access to quality education for persons with disabilities: - ensuring that rehabilitated/new infrastructure are disability-friendly to students; - enhancing the pedagogical skills of teachers of special education; and - improving the supply of logistics for special education on a regular basis. - Key policy measures to promote science and technical education at all levels: - providing incentives for science, mathematics, technical and vocational teachers; - supporting science and research development by increasing funding for research and technology development; - upgrading tools and equipment for teaching science, technical and vocational subjects; and - encouraging the private sector to support initiatives in science education. - Key policy measures to strengthen linkages between tertiary education and industry: - establishing industry/university collaborative programmes to increase opportunities for practical training/internship and human resource planning; - determining the skills and human resource requirements necessary for accelerated growth and restructuring of the economy; - the creation of opportunities for students to study and work; strengthening collaboration between polytechnics and industry; and - creating opportunities for industry to participate in curriculum development in the polytechnics. ### Skills Training - Rationale: - A purposeful national shift in skills development is necessary to produce employable manpower for an industrial economy. - Key policy measures: - developing and implementing a modern National Apprenticeship Policy; - empower the Council for Technical and Vocational Education Training (COTVET) to provide a more skills competency-based technical and vocational education; - restoring the vacation workshops for second cycle girls aspiring to careers in science and technology; and - modernization and expansion of technical schools to provide a well-developed stream as an alternative to second cycle academic education in collaboration with the private sector. ### Health and Nutrition - Objectives: - ensure sustainable financing arrangements that protect the poor; - bridging equity gaps in access to health care and nutrition services; - improving governance and strengthening efficiency in health service delivery, sustainable financing arrangements that protect the poor; - intensifying prevention and control of non-communicable and communicable diseases; - improving access to quality maternal, child and adolescent health services; - strengthening mental health service delivery; - providing support for HIV and AIDS/STI/TB patients; and - improving nutrition and food security. - Key policy measures to ensure sustainable financing arrangements that protect the poor: - introduce the payment of a one-time premium under the National Health Insurance Scheme; - reviewing and implementing a comprehensive health financing strategy; - strengthening institutional capacity for Internally Generated Funds (IGF) generation and management; - advocating for ‘sin’ taxes as part of health revenue generation; and - fully integrating private medical practice into the operations of the NHIS. - Key policy measures to bridge equity gaps in access to health care and nutrition services: - accelerating Community Health Planning and Services (CHPS) expansion in under-served areas; - establishing new district hospitals in districts without such facilities; - upgrading, equipping and staffing existing district hospitals; - constructing new health facilities in underserved areas; - scaling-up the implementation of the medical waste management programme; - establishing infectious diseases management centres; - establishing intensive care units in regional and districts hospital; - expanding pre-service health training facilities; and - expanding infrastructure and equipment to support effective and efficient maternal and child delivery services. - Key policy measures to strengthen efficiency in public health service delivery: - improving financial management systems (e.g. budget, procurement and audit); - strengthening intra and inter-sector processes for policy dialogue, review, collaboration, coordination, planning and accountability; - reviewing and aligning data collection tools and linking District Health Management Information System (DHMIS) to regional/headquarters to build essential data depositories for effective action e.g. MOH, GHS (ICD, PHD, PPME etc); and - monitoring and evaluating the performance of the health sector. - Key policy measures to improve access to quality maternal, child and adolescent health services: - re-introducing certificate midwifery training and ensuring midwifery service in Community Health Planning and Services (CHPS) compounds; - providing comprehensive emergency obstetric care (including blood transfusion, ambulances) at the district level; - providing basic emergency obstetric care at all health centres; scaling up community case management and strengthening High Impact Rapid Delivery (HIRD) for under-five mortality (U5M), maternal mortality (MM) and malnutrition; and - instituting essential newborn care. - Key policy measures to prevent and control non-communicable and communicable diseases: - establishing screening and management programmes (for diabetes, hypertension, cancers, sickle cell, and asthma); and - developing capacity for research into communicable and non-communicable diseases and adolescent health programming; - Key policy measures to strengthen Mental Health service delivery: - advocating for the passage of the Mental Health Bill and implementation of the mental health law; - promoting community-based services and ensure stakeholder collaboration; - training and deploying more mental health personnel; - scaling up mental health promotion; - establishing services for treatment and rehabilitation of alcohol and drug addiction and other psychiatric conditions in all age groups, especially young people; - establishing and upgrading mental health facilities and infrastructure; and - establishing stress management centres at all levels. - Key policy measures to address the adverse effects of HIV and AIDS/STI/TB and other related conditions: - ensure the reduction of new HIV and AIDS/STI/TB transmission; - ensure reduction of the impact of HIV and AIDS-related morbidity and mortality; and - mitigate the negative socio-cultural effects of HIV and AIDS, and enhance their proper management. - Key policy measures to address persistent high malnutrition rates among children, particularly in rural areas and northern Ghana: - reducing malnutrition-related disorders and deaths among infants and young children and Women In their Fertility Ages (WIFA); - promoting the consumption of locally available and nutritionally adequate food including the consumption of micro-nutrient rich foods among children and WIFA; - ensuring increased food security and social protection for vulnerable households including smallholder farmer households; - developing a comprehensive national nutrition and food security policy; and - mitigating the impacts of rising food prices as well as climate change on food security of the poor and vulnerable households. ### Youth and Sports Development - Key policy measures: - mainstreaming youth development into national development policy framework; - ensuring the implementation of the recently formulated youth policy; - equipping youth with employable skills; - introducing new initiatives for youth development; - review and pass the Sports Bill; and - provide support for the further development of academicals/schools and juvenile sports. ### Social Protection and Inclusion - Key policy measures: - prepare a comprehensive national social policy framework to provide social safety nets, especially, for the poor, vulnerable and excluded; - strengthen coordination of social sector policies and programmes across sectors; - provide adequate resources for social policy formulation, implementation and evaluation; - improve targeting of existing social protection programmes; - mainstream social protection into sector and district planning; and - strengthen monitoring of social protection programmes. ### Population Management - Priority aims: - population variables are integrated into all aspects of development planning at all levels; - family planning is re-positioned as a national development issue; and - demographic database on population and development are regularly updated. - Key policy measures: - Introduce measures that can improve the livelihoods in places of origin - Strengthen capacity of relevant stakeholders to integrate population issues into development planning - Integrate family planning into plans and activities of MDAs and MMDAs - Strengthen partnerships among stakeholders including the private sector to promote FP - Integrate Sexual and Reproductive Health and HIV and AIDS - Increase the number of trained professionals in reproductive health and family planning services delivery - Strengthen capacities for research, monitoring and evaluation - Strengthen the capacity of institutions to collect, analyze, coordinate and disseminate population and other relevant statistical data - Build capacity to effectively coordinate population management - Establish a regulatory body for effective migration management ### Child Development And Protection - Objectives: - promote effective child development in all communities, especially deprived areas; - enhancement of children’s physical, social, emotional and psychological development; and - enhancement of institutional arrangements for inter and intra sectoral collaboration. - Policy interventions: - creation of appropriate platforms for institutional collaboration on child survival, development and protection; - strengthening of the capacity of oversight institutions for children; and - enhancing the implementation and reporting of international conventions and protocols. ### The Aged - Objective: - ensure that the issues on ageing is integrated in the development planning process. - Policy interventions: - promoting the development and effective implementation of a comprehensive ageing policy; and - improving funding of programmes for older persons. ### Disability - Objective: - ensure a more effective appreciation of and inclusion of disability issues both within the formal decision making process and in the society at large. - Policy interventions: - mainstream issues of disability into the development planning process at all levels - promote continuous collection of data on PWDs; - implement the provisions of the Disability Act; and - promote universal access to infrastructure by PWDs. ### Labour Productivity and Employment - Objectives: - national policy for enhancing productivity and income in both formal and informal economies; - mainstreaming employment issues in national development planning process; - strengthening the legal and institutional framework for labour administration; - implementing a functional labour market information and statistics system; and - implementing policies and strategies to promote workers rights, social dialogue and social protection. - Specific policy interventions to enhance productivity and income: - developing and implementing productivity measurement and enhancement programmes for the formal and informal sectors of the economy; - supporting the development and implementation of capacity enhancement programmes that take into consideration the specific needs of men and women in both the formal and the informal sectors of the economy; - supporting the establishment of participatory and cooperative mechanisms to enhance income and job security in the informal economy; and - adopting measures to integrate formal and informal economies. - Specific policy interventions to mainstream employment issues in national development planning: - maintain prudent macroeconomic management to promote growth with employment; - review planning, budgeting and procurement guidelines to reflect employment generation as a requirement; - support MMDAs to develop and implement employment generation programmes within the national employment framework; - formulate and implement employment policy; and - review existing private sector development strategies and programmes in line with Government’s employment policy. - Specific policy interventions to promote more and better jobs: - supporting selected industrial products to be produced domestically in labour-intensive environment (e.g. construction and building materials, agricultural equipment, motor vehicles, etc); - developing and implementing a Rural and Urban Entrepreneurship and Artisan Project (RUEAP) to provide capital and technical support to potential businesses; - developing and implementing labour-based housing and public works scheme to reduce unemployment; - instituting labour-based constructional projects in urban and rural roads, drainage and environmental sanitation systems; - establishing ICT trainers programme to train SHS graduates in ICT applications (e. g. repair of mobile phones and other related gadgets); - promoting Ghana as a major destination for ICT Business outsourcing by establishing ICT parks of international grade in selected locations; - supporting artisans and other professionals including fitters and mechanics, carpenters and electricians; hairdressers and beauticians to form strong district, regional and national associations to enable them qualify for Government support; - expanding nursing and midwifery colleges and increase new students intake for health-care-related jobs; - building the capacity of local publishing and printing industries to generate employment; and - establishing a system to identify, promote and reward innovation and creativity at all levels. - Specific interventions to strengthen legal and institutional framework for labour administration: - strengthening the capacity of labour institutions; - enforcing rules and regulations governing labour administration including international standards, conventions and instruments; and - ensuring adequate employment generation provisions in national laws and regulations. - Specific interventions to ensure a functional labour market information system: - continuing the design and implementation of a labour market information system; - supporting organization and dissemination of labour market information for informed decision making; - strengthening the research and gender analysis capacity of the Ministry of Employment and Social Welfare; - promoting collaboration among users of labour market information; and - restructuring and developing the institutional capacity of the Ministry of Employment and Social Welfare and its departments and agencies for the effective management of labour and employment policy issues. - Specific interventions to promote workers rights, social dialogue and social protection: - strengthening institutions for social dialogue and social protection; - building the capacity of tripartite partners; - facilitating the enforcement of labour laws which protect the security, health and welfare of workers, and especially stemming the tide of casualisation of employment; - enhancing the capacity of both public and private sector agencies, including the Factories Inspectorate of the Ministry of Employment and Social Welfare to facilitate work-place occupational safety and health standards; and - support the Social Security and National Insurance Trust (SSNIT) to expand the Informal Sector Fund to cover the risks and pension requirements of informal sector workers. ### Poverty and Income Inequalities Reduction - Objectives: - develop targeted social interventions for vulnerable and marginalized groups - enhanced public awareness on women’s issues - reduce poverty among food crop farmers and other vulnerable groups, including PWDs - Specific targeted social interventions for vulnerable and marginalized groups: - coordinate and redistribute development projects and programmes in a manner that ensures fair and balanced allocation of national resources across ecological zones, gender, income groups including groups of PWDs; - designate a special sevelopment area for the coastal savannah region of Ghana; - Implement local economic development activities to generate employment and social protection strategies; - develop district infrastructure plans and improve business development services to facilitate local economic growth and private sector engagement; - develop harmonized regional infrastructure and investment plans and provide opportunities for private sector participation, especially in the tourism industry; - ensure accelerated development of social and economic infrastructure and services in rural areas and poor urban communities including education and training, health, roads, good housing, water and sanitation; and - improve agricultural productivity and incomes, and transform rural agriculture management and practices into viable business ventures. - Specific interventions to enhance public awareness on women’s issues: - promote the economic empowerment of women through access to land, labour, credit, markets, information, technology, business services and networks, and social protection; and - Promote the social empowerment of women through access to education. - Specific interventions to reduce poverty among food crop farmers and other vulnerable groups: - link food crop farmers to the Ghana School Feeding Programme, second cycle institutions, prisons for it to serve as ready market for their produce; - develop and implement a programme to expand access of extremely poor farmers to complimentary farm inputs and services; and - provide comprehensive business support to farmers benefiting from credit schemes, especially training. *Italic: _cr12204 - 2.7 Human development, employment and productivity_* ### 2.8 Transparent and accountable governance ### 2.8 Transparent and accountable governance ### Overarching goal and medium-term priority areas - Transparency, accountability and participation are the cornerstones for good democratic governance. - Overarching goal: entrench participatory democratic governance by empowering state and non-state actors to participate effectively in the governance and development processes at all levels of the society. - Medium term priority policies focus on addressing constraints in these key areas: - Deepen Practice of Democracy and Institutional Reform Agenda - Local Governance and Decentralization - Economic growth and Plan coordination in special development areas to reduce poverty/inequalities - Public Policy Management and Public Sector Reforms - Development Communication - Women Empowerment - Corruption and Economic Crimes - Rule of Law and Justice - Public Safety and Security - Access to Rights and Entitlement - National Culture for Development - International Relations (Partnership) for Development - Evidence-Based Decision Making ### Deepen Practice of Democracy and Institutional Reforms - Specific interventions: - strengthen the arms of the independent governance institutions such as Parliament, CHRAJ and the Economic and Organised Crimes Office (EOCO); - carrying out the constitutional review process; - build capacity of governance institutions and Parliament to draft laws and perform oversight responsibilities; - ensuring that civil society and private sector organizations participate effectively in the governance and development processes; - ensure the enactment of the Transition Bill. ### Local Governance and Decentralization - Specific interventions: - reviewing the Local Government Service Act, 2003 (Act 656) and Local Government Act, 1993 (Act 462) to eliminate areas of conflicts and implement the National Decentralization Policy and Plan; - operationalisation and strengthening of the sub-district structures by reviewing and restructure the numbers and composition of the unit committees and ensure that the unit committees perform the functions assigned to them under LI 1589 of 1994; - fully operationalize the Local Government Act 1993, Act 462 and institute attractive incentives for Assembly members to enable them perform the duties assigned to them under the Act; - establish the proposed Constituency Development Fund for Members of Parliament; - ensuring efficiency and transparency in the management of district and local resources. ### Economic growth and Plan coordination in special development areas to reduce poverty/inequalities - Objective: reduce spatial and income inequalities across the country and among different socio-economic classes. - Specific interventions: - ensuring accelerated rural development at the district level aimed at improving rural infrastructure and increasing access to social services; - enhance planning and coordination of the development of Ghana’s oil basin, and other special development areas including SADA, MIDA, CEDECOM/Coastal Savannah, Bui City, etc; - Review legislative frameworks for special development areas to conform to the national development planning system; - Enhance monitoring and evaluation of special development areas and programmes. ### Public Policy Management - Scope of efforts: - strengthening the coordination of the development planning system for equitable and balanced spatial and socio-economic development; - upgrading the capacity of the public and civil service for transparent, accountable, efficient, timely, effective performance and service delivery; - rationalizing and defining structures, roles and procedures for state and non-state actors; - provision of an efficient e-governance structure to ensure best practice. - Specific policy measures: - strengthening the coordinating function of the NDPC to enhance evidence-based decision-making and resource allocation at all levels; - reviewing the current status of the on-going public sector reform programmes to enhance accelerated implementation; - develop a comprehensive human resource development policy for the public sector to include reasonable remuneration; - undertake a comprehensive review and clarify the mandate and functions of state and non-state actors; - integrate the institutional networks within public sector and shared resources; - make automation and networking compulsory as a tool to reduce fraud. ### Public Sector Reforms - Specific policy measures: - the introduction of Ministerial Advisory Boards with private sector and civil society representation; - the establishment of a Public Sector Reform Secretariat and the Policy Evaluation and Oversight Wing of the Policy Unit at the Office of the President; - the establishment of Project Advisory Committees and Project Management Units in each Ministry as well as the optimum deployment of capacity and expertise to implement specific reform initiatives. ### Development Communication - Key objectives: - mainstream development communications into national planning system; - promote media and public relations accountability for national development; - enhance information dissemination on Government policies and programmes; - increase partnership with the media based on a mutual principled relationship of fairness, objectivity and truthfulness; - promote an efficient communication strategy. - Specific policy measures (selection): - streamline development communications across MDAs and MMDAs; - create awareness of opportunities for engagement with local and national governance structures; - strengthen implementation of the National Development Communication Policy; - promote social responsibility among media houses; - develop behaviour change communication models in support of development; - enact law on right to public information; - expand structures of the PRAAD to function effectively in the collation, storage and retrieval of information; - initiate public and media education on the right to information law after its passage; - publish and disseminate materials in local language on the Right to Information Act; - organise regular press/media briefings and bi-monthly interactions with media; - identify key authorities/professionals to speak to issues on behalf of Government; - capacity building for media personnel and organizations; - build capacity of ministers and members of Government on media relations and communication skills; - develop and implement a comprehensive and inter-sectoral communication policy to address all government communication needs including public feedback; - improve Government information dissemination and management machinery; - maintain a policy of proactive communication and prompt response to public feedback; - expand opportunities for community and public ownership of radio; - make use of indigenous communication channels e.g. drama, theatre, local dialects, etc. ### Women’s Participation in Governance - Specific interventions: - increasing the pace of the implementation of the policy of affirmative action for women including strengthening the institutions dealing with women’s and children’s issues; - ensuring gender parity in education at all levels; - reviewing and enforce existing laws protecting women’s rights and introduce new legislations to take care of existing gaps; - continue to formulate and implement gender policies and legislative reforms aimed at attaining a minimum of 40% women’s representation in Government and public sector appointments. ### Rule of Law and Justice - Specific interventions: - improving case management systems of the courts including scaling-up mechanisms; - enhanced human resource levels; expanding infrastructure and revise and implement rules of procedure; - effectively mainstream the alternative dispute resolution (ADR) mechanism; - review the Legal Aid Act, 1997, Act 542, and create under the Legal Aid Scheme a Directorate of Public Defenders (DPD) analogous to the Directorate of Public Prosecutions at the Attorney General’s Department as well as Citizens’ Advisory Bureaux to give free legal advice to citizens. ### Public Safety and Security - Key objectives: - ensure that the capacity of security agencies is improved to provide internal security for human safety and protection; - strengthen intelligence agencies to fight social and economic crimes; - safeguard territorial integrity. - Specific interventions: - monitoring and regulating the operations of internet service providers as well as strengthening and supporting intelligence agencies; - reviewing existing laws and regulations on spatial and infrastructural development; - forestalling civil strife and external aggression in order to secure the country for growth and poverty reduction; - build operational, human resource and logistics capacity of the security agencies. ### Corruption and Economic Crimes - Medium-term aim: promote transparency and accountability and reduce opportunities for rent-seeking among public officials. - Specific interventions: - enforcing existing enactments pertaining to public procurement, internal audit, public financial management and the whistle blower law; - ensuring the enactment of the Freedom of Information Bill; - finalize and implement a fair wage policy. ### Access to Rights and Entitlement - Specific interventions: - developing and designing special capacity building programmes for the unemployed graduates, the vulnerable and excluded; - increase the provision and quality of social services; - Strengthen capacity for public education and dissemination of information on rights and entitlement; - Collect and document data on rights and entitlements of children; - Develop capacity building programmes for institutions responsible for children’s rights; - Enhance the capacity of relevant agencies to adequately enforce laws on family life (Domestic Violence etc); - Intensify advocacy for ratification of charters and domestication of international conventions, e.g. child labour (ILO Convention 182); - Mainstream Human Rights perspective into National Development; - Promote human rights education at all levels; - Implement National Disability Act, Early Childhood Care and Development Policy, Children’s Act, Gender and Children’s Policy and Human Trafficking Act, Juvenile Justice Act. ### National Culture and Development - Objective: create appreciation of, and love for national culture as a contributor to national development. - Specific policies: - strengthening of both the National and Regional Houses of Chiefs to contribute appropriately to national development; - documentation of chieftaincy and cultural history; - review the national culture policy to ensure it takes into account the strategic role of culture in development; - mainstream culture in the nation’s social and economic development agenda; - promote the implementation of a dynamic culture development programme; - complete the development of fully-functional Centres for National Culture in all regional and district capitals; - develop the capacity of Centres of National Culture to effectively promote cultural activities across the country. ### International Relations (Partnership) for Development - Key objectives: - accelerate economic and social integration with regional and/or sub-regional states; - sustain Government’s commitment to international peace and security, adherence to international protocols and conventions, and incorporate them into national laws; - institute mechanisms to manage external economic shocks; - promote domestic trade and effective enforcement for standards and regulations. - Specific policies: - Work towards establishing a common customs union; - Mainstream international protocols into local laws for the promotion of international peace and sustainable developments; - Strengthen the Sub- Regional/Global collaboration among security agencies. ### Evidence-Based Decision Making - Key objective: improve accessibility and use of existing database for policy formulation, analysis and decision making. - Specific policies: - rationalize the production of data within the statistical system; - define the roles and mandates of the various data producing institutions; - adopt common definitions, methods and classifications; - review the Statistical Service law, develop and adopt a statistical master plan; - adopt international standards and good practices system-wide, including the United Nations Principles for Official Statistics and the IMF’s General Data Dissemination Standards; - support MDA’s to generate data for effective planning and budgeting; - build capacity of MDAs in electronic data analysis and management; - Re-engineer and fully automate the operations of government strategic institutions; - establish strategic partnership between MDAs to harmonize and standardize government sector spatial databases for planning and monitoring development activities; - support the maintenance of an up-to-date spatial database for Mapping and Monitoring Development Activities (EMMSDAG); - support the development of a web-based system for accessing the EMMSDAG Spatial Database by strategic government institutions; - building capacity within MDAs, MMDAs and strategic government institutions in the use of the EMMSDAG Spatial Database for development planning and monitoring; - strengthen MIS systems of MDAs and MMDAs. ### Managing migration for national development - Key objective: minimise the negative impact and optimise the potential impact of migration for Ghana’s development. - Specific policies: - formulate and promote national migration and development policy; - mainstream migration into national development frameworks; - establish national institution for the management of migration for development; - establish a database on Ghanaians in the Diaspora. --- ### CHAPTER THREE — Estimated resource requirements: introduction and costing methodology - Chapter focus: methodology for estimating resource requirements for implementation of policies and guidelines for costing Sector Medium Term Development Plans (SMTDPs). - Starting point for costing the GSGDA, 2010 – 2013: the SMTDPs, 2010 – 2013. - National development planning process: Planning Guidelines issued to MDAs and MMDAs to prepare Sector and District Development Plans; these are synthesized into the National Medium-Term Development Plan. - Aggregation categories for national cost consolidation: - Thematic Area; - Key Focus Area; - Policy Objectives; - Strategies; - Implementing and Collaborative agencies. - In 2009 the MDAs were assisted by NDPC to prepare their respective SMTDPs for the period 2010 – 2013 based on the GSGDA, 2010 - 2013. The SMTDPs are the basis of the logical framework for the GSGDA’s cost estimate. - SMTDP components: - Mission Statement; - Adopted Sector Objectives from the MTDPF, 2010 – 2013; - Sector Strategies in line with the Medium-Term Development Policy Framework (2010-2013); - Formulated broad sector programme; - Set of outputs based on broad sector programme; - Set of activities which are aligned to the strategies and policy objectives of the GSGDA. - SMART requirements for activities: - Specific, Measurable, Achievable, Relevant, Timely (detailed definitions provided in text). - MDAs costing approach: - Identify objectives for each thematic area specified in the sector medium-term strategic plan; - For each objective, list expected results/outputs; - Identify activities to implement the strategy. - Costing scope for GSGDA, 2010 – 2013: activities limited to Service (Item 3) and Investment (Item 4). Personnel Emoluments (Item 1) and Administration (Item 2) are not to be included in the GSGDA cost estimates. - Input cost estimation approach: - Inputs valued according to Quantities, Frequencies and Unit cost; - Inputs standardized and classified as the national account segment of the government chart of account; - Total Input Cost = Unit Cost × Quantity × Frequency. - Aggregation sequence: - Sum of Input Costs for each Activity = Activity Cost; - Activity Costs aggregated to Strategy cost, Policy Objective Cost, Key Focus Area Cost, and Thematic Area Cost. - Cross-cutting issues: - MDAs required to avoid double counting of activities shared with collaborating MDAs; - Costs associated with an MDA’s role in achieving cross-cutting policy objectives accounted for by the relevant MDA. *Content derived from: _cr12204 - 2.8 Transparent and accountable governance* ### 3.3 Guidelines for Costing the SMTDPs ### 3.3 Guidelines for Costing the SMTDPs ### Guiding principles for costing SMTDPs - The costs of both new and on-going programmes and projects necessary for meeting the targets were included in the total cost of implementation. - Personnel and administration costs associated with the execution of the action plan are assumed to be included in the normal budgetary resources and are not included in the costing of the priority themes. Therefore, the activities costed consisted mainly of Service and Investment expenditures associated with the programmes and projects. - When activities are implemented by the private sector in partnership with the public sector, only the public sector activities are costed. - The costing of the SMTDP (2010 – 2013) was guided by the Guidelines for the 2011-2013 Annual National Budget. Cost centres used for accumulation of costs are the same as the cost centres in the Annual National Budget, currently at 35. ### Cost centres (Schedule 1) - 1 Ministry of Food and Agriculture - 2 Ministry of Lands & Natural Resources - 3 Ministry of Trade & Industry - 4 Ministry of Tourism - 5 Ministry of Energy - 6 Ministry of Environment, Science & Technology - 7 Ministry of Water Resources, Works & Housing - 8 Ministry of Transport - 9 Ministry of Roads & Highways - 10 Ministry of Communications - 11 Ministry of Education - 12 Ministry of Youth and Sports - 13 Ministry of Employment and Social Welfare - 14 Ministry of Health - 15 Ministry of Women and Children’s Affairs - 16 Ministry of Local Government and Rural Development - 17 Office of Government Machinery - 18 Office of Parliament - 19 Audit Service - 20 Public Services Commission - 21 District Assemblies Common Fund - 22 Electoral Commission - 23 Ministry of Foreign Affairs and Regional Cooperation - 24 Ministry of Finance and Economic Planning - 25 National Commission for Civic Education - 26 Ministry of Chieftaincy & culture - 27 National Media Commission - 28 Ministry of Information - 29 National Development Planning Commission - 30 National Labour Commission - 31 Ministry of Justice & Attorney-General’s Department - 32 Ministry of Defence - 33 Commission on Human Rights & Administrative Justice - 34 Judicial Service - 35 Ministry of Interior ### Resource requirement — overview (GSGDA 2010–2013) - Total cost for implementing the GSGDA over the period 2010 – 2013 is estimated at US$23,891.459 million (GH¢34,642.616 million), which amounts to about US$5,972 million per annum. - About 54.5% of the total resource requirement is expected to go into implementation of activities related to the provision of economic and social infrastructure, human settlements development, and the development of the oil and gas industry. - Resources for human development, productivity and employment constitute 25.2%. - Resources for enhancing competitiveness of Ghana’s private sector and promoting agriculture modernization and efficient natural resource management constitute about 12%. - Resources for ensuring and sustaining macroeconomic stability constitute about 2%. - Resources for promoting transparent and accountable governance constitute 6.4%. - The resource flow is expected to be evenly distributed, particularly during the outer years, with an average resource requirement of about 28.7% per annum. - The resource requirement for 2010 is expected to be the lowest, constituting about 14%, increasing gradually to 29.9% in 2013. ### Thematic details and key statistics (from Table 3.1) - I. ENSURING AND SUSTAINING MACROECONOMIC STABILITY - 2010: 111.129 (3.34%) - 2011: 126.579 (1.92%) - 2012: 130.371 (1.91%) - 2013: 134.795 (1.89%) - Total Value (in Million US$): 502.873 (2.10%) - II. ENHANCING COMPETITIVENESS IN GHANA’S PRIVATE SECTOR - 2010: 21.467 (0.65%) - 2011: 507.513 (7.71%) - 2012: 643.298 (9.41%) - 2013: 733.933 (10.26%) - Total Value (in Million US$): 1,906.211 (7.98%) - III. AGRICULTURE MODERNIZATION AND NATURAL RESOURCE MANAGEMENT - 2010: 90.755 (2.73%) - 2011: 292.616 (4.44%) - 2012: 285.102 (4.17%) - 2013: 237.882 (3.33%) - Total Value (in Million US$): 906.354 (3.79%) - IV. INFRASTRUCTURE AND HUMAN SETTLEMENTS - 2010: 1,493.714 (44.96%) - 2011: 2,497.376 (37.93%) - 2012: 2,568.205 (37.57%) - 2013: 2,859.120 (39.99%) - Total Value (in Million US$): 9,418.415 (39.42%) - V. ENERGY, OIL AND GAS INDUSTRY - 2010: 281.699 (8.48%) - 2011: 1,257.948 (19.11%) - 2012: 1,182.371 (17.30%) - 2013: 879.421 (12.30%) - Total Value (in Million US$): 3,601.438 (15.07%) - VI. HUMAN DEVELOPMENT, PRODUCTIVITY AND EMPLOYMENT - 2010: 1,109.410 (33.39%) - 2011: 1,441.495 (21.89%) - 2012: 1,577.153 (23.07%) - 2013: 1,890.690 (26.44%) - Total Value (in Million US$): 6,018.748 (25.19%) - VII. TRANSPARENT AND ACCOUNTABLE GOVERNANCE - 2010: 214.076 (6.44%) - 2011: 460.711 (7.00%) - 2012: 448.417 (6.56%) - 2013: 414.216 (5.79%) - Total Value (in Million US$): 1,537.419 (6.44%) - GRAND TOTAL - 2010: 3,322.250 (100.00%) - 2011: 6,584.238 (100.00%) - 2012: 6,834.916 (100.00%) - 2013: 7,150.056 (100.00%) - Total Value (in Million US$): 23,891.459 (100.00%) ### Thematic-specific allocation highlights - Infrastructure and human settlements - Total required: US$9,418.415 million. - 55.2% of this is expected for efficient and integrated transport infrastructure (rehabilitation of central and western railway lines, modernization of Takoradi Harbour, reconstruction of Eastern and Western corridor roads, development of a new deep sea port, improvement of airports and air strips). - 20.5% for improved water and adequate sanitation. - 11.9% for accelerated development of affordable housing and shelter. - 12.4% for science and technology development, ICT development, human settlement development and recreational infrastructure. - Distribution: about 16% required in 2010, increasing to 30.4% in 2013. - Energy, oil and gas - Total required: US$3,601.438 million. - 21.5% for development of infrastructure and human resource to support oil and gas industry (including local capacity and local content law). - 78.5% for provision of reliable and adequate energy supply to households and industry (rehabilitation and expansion of energy infrastructure, diversification of national energy mix, development of selected small river dams, integration with sub-regional infrastructure). - Distribution: nearly 8% in 2010; about 68% during 2011 and 2012; 24.4% in 2013. - Human development, productivity and employment - Total required: US$6,018.748 million. - 61.3% for quality health care and nutrition (improving access to maternal, child and adolescent health services; bridging equity gaps). - 33.6% for quality education. - 5% for productivity and employment programmes, youth and sports, population management, social protection and expansion of safety net. - Distribution: about 18.4% in 2010, increasing to 31.4% in 2013. - Transparent and accountable governance - Total required: US$1,537.419 million. - 26.8% for public policy management and public sector reforms. - 20.6% for public safety and security. - 19.8% for promotion of democracy and institutional reforms. - 8% for special development areas initiatives. - 6.6% for local governance and decentralization. - 6.7% for evidence-based decision making. - 18.2% for women empowerment, development communication, rule of law and justice, national culture in development, international relations and partnerships, access to rights and entitlements, and fighting corruption and economic crimes. - Distribution: nearly 13.9% in 2010; 30% in 2011; 29.2% in 2012; 26.9% in 2013. *Source: MTEF Database, MOFEP, 2010 (as presented in “3.3 Guidelines for Costing the SMTDPs”)* ### 4.1 Resource Envelope ### 4.1 Resource Envelope ### Overview of resource composition - Budgetary spending excluding net lending is projected at an average of 40.3% of annual GDP over the four years of the GSGDA implementation period. - Domestic revenue sources including oil revenue make up 31.8% of GDP on average. - Grants from bilateral and multilateral sources constitute about 4.3% of GDP on average. - Programme loans and exceptional financing arrangements are expected to provide the remaining 4.2% of GDP. - About 86.5% of total receipts over the period are expected to be generated from domestic sources (domestic tax and non-tax). - Revenue from oil and gas over the plan period is expected not to be less than 6% of the domestic receipt. ### Key revenue aggregates (as presented) - TAX REVENUE (Tax Revenue figures by year in Million Ghana Cedis): - 2010: 6,072.243 - 2011: 7,712.451 - 2012: 9,505.768 - 2013: 10,731.304 - NON-TAX REVENUE (Million Ghana Cedis): - 2012: 1,659.061 - 2013: 1,899.685 - TOTAL REVENUE (Million Ghana Cedis): - 2010: 8,264.013 - 2011: 9,299.521 - 2012: 11,441.281 - 2013: 12,952.985 - GRANTS (Million Ghana Cedis): - 2010: 1,364.515 - 2011: 1,301.601 - 2012: 1,306.873 - 2013: 1,489.123 - TOTAL REVENUE & GRANTS (Million Ghana Cedis): - 2010: 9,628.527 - 2011: 10,601.123 - 2012: 12,748.154 - 2013: 14,442.108 ### Selected revenue line items (exact figures retained) - TAXES ON INCOME & PROPERTY (Million Ghana Cedis): - 2010: 2,235.386 - 2011: 3,334.799 - 2012: 4,471.376 - 2013: 5,056.159 - Oil Revenue: 2010: 0.000; 2011: 198.448; 2012: 813.498; 2013: 697.398 - VAT (Million Ghana Cedis): - 2010: 1,675.350 - 2011: 1,937.650 - 2012: 2,309.600 - 2013: 2,650.780 - Domestic VAT: 2010: 609.400; 2011: 829.250; 2012: 1,009.980; 2013: 1,211.980 - External VAT: 2010: 1,065.950; 2011: 1,108.400; 2012: 1,299.620; 2013: 1,438.800 - National Health Insurance Levy (NHIL) (Million Ghana Cedis): - 2010: 480.908 - 2011: 477.673 - 2012: 565.132 - 2013: 644.306 ### Resource mix for capital investment - About 54.8% of capital investment envisaged under the GSGDA is expected to be financed through traditional domestic and foreign financed arrangements. - The remaining 45.2% is expected to be financed through special financing arrangements including the Sino-Ghana Bilateral Investment Initiatives, Korea-Ghana Bilateral Initiative and Public-Private Partnerships. - Traditional foreign finance capital investment expected to average at least US$1,168.228 million per annum during the planned period. - Domestic financed capital expenditure (excluding statutory expenditure) is estimated at US$1,365.972 million per annum. - HIPC and MDRI financed expenditure expected to average US$182.59 million per annum. - Programme and Project loans expected to average at least US$897.609 million per annum. --- ### Expenditure and financing ### Expenditure aggregates (Million Ghana Cedis) - RECURRENT expenditure: - 2010: 7,625.049 - 2011: 8,924.861 - 2012: 10,059.795 - 2013: 10,471.373 - NON-INTEREST EXPENDITURE (Million Ghana Cedis): - 2010: 6,278.891 - 2011: 7,093.561 - 2012: 8,643.645 - 2013: 8,950.523 - Wages & Salaries (Million Ghana Cedis): - 2010: 3,112.950 - 2011: 3,732.762 - 2012: 4,740.607 - 2013: 6,020.571 - INTEREST PAYMENTS (Million Ghana Cedis): - 2010: 1,346.157 - 2011: 1,831.300 - 2012: 1,416.150 - 2013: 1,520.850 - Domestic interest: 2010: 1,038.300; 2011: 1,372.200; 2012: 1,090.983; 2013: 1,180.050 - External (Due): 2010: 307.857; 2011: 459.100; 2012: 325.167; 2013: 340.800 - CAPITAL EXPENDITURE (Million Ghana Cedis): - 2010: 2,839.498 - 2011: 3,745.903 - 2012: 3,645.366 - 2013: 4,427.882 - Capital (domestic financed): 2010: 1,311.071; 2011: 1,587.503; 2012: 2,349.318; 2013: 2,656.410 - Capital (foreign financed): 2010: 1,528.427; 2011: 2,158.400; 2012: 1,296.048; 2013: 1,771.472 - TOTAL EXPENDITURE & NET LENDING (Million Ghana Cedis): - 2010: 10,777.694 - 2011: 12,670.764 - 2012: 14,071.881 - 2013: 15,278.414 ### Financing (Million Ghana Cedis) - FINANCING totals: - 2010: 1,945.050 - 2011: 2,336.914 - 2012: 1,667.501 - 2013: 1,189.458 - Foreign (net): - 2010: 553.211 - 2011: 998.952 - 2012: 768.150 - 2013: 481.039 - Borrowing: - 2010: 1,110.947 - 2011: 1,618.716 - 2012: 1,377.094 - 2013: 1,099.376 - Project loans: 2010: 695.547; 2011: 1,374.217; 2012: 1,210.779; 2013: 933.061 - Programme loans: 2010: 415.400; 2011: 244.499; 2012: 166.315; 2013: 166.315 - Amortisation (due): - 2010: -557.736 - 2011: -619.764 - 2012: -608.944 - 2013: -618.337 - Exceptional financing / HIPC Relief (Cologne terms): - 2010: 130.045 - 2011: 118.175 - 2012: 114.985 - 2013: 113.847 - Domestic (net): - 2010: 1,261.794 - 2011: 1,219.787 - 2012: 784.367 - 2013: 594.573 ### Fiscal ratios and memorandum items (percentages and totals as presented) - Taxes on income and property: 8.6; 10.7; 12.7; 12.9 - Taxes on domestic goods: 1.7; 1.5; 1.5; 1.6 - Taxes on international trade: 4.4; 4.3; 4.1; 4.0 - Tax revenue: 23.4; 24.8; 27.0; 27.3 - Nontax revenue: 7.4; 4.4; 4.7; 4.8 - Domestic revenue: 31.9; 29.8; 32.5; 32.9 - Grants: 5.3; 4.2; 3.7; 3.8 - Total revenue and grants: 37.1; 34.0; 36.2; 36.7 - Total Oil Revenue (Million Ghana Cedis): 0.000; 584.039; 1,485.745; 1,431.498 - Recurrent (% of GDP): 29.4; 28.6; 28.6; 26.6 - Capital (% of GDP): 10.9; 120.2; 10.4; 11.3 - Exchange Rate (GH¢ per US$): 1.43; 1.45; 1.45; 1.45 --- ### 4.2 The Resource Gap ### Estimated total cost and gap - Estimated total resources required to finance the GSGDA: US$23,891.459 million (GH¢34,642.616 million) over 2010-2013. - Over the period, total revenue and grants expected to rise by an average of 17.9% per annum from US$6,088.545 million in 2010 to US$9,960.074 million in 2013. - GOG budgetary resources allocated for expenditures in Services and Investment estimated to rise at an average of 15.2% per annum from US$2,271.403 million in 2010 to US$3,418.921 million in 2013, thereby accounting for 47.7% of the total resource requirement over the period. ### Resource Gap Analysis (Amount in million US$) - SERVICES by year: - 2010: 285.740 - 2011: 276.279 - 2012: 326.753 - 2013: 365.210 - Total SERVICES: 1,253.982 - INVESTMENT by year: - 2010: 1,985.663 - 2011: 2,583.381 - 2012: 2,514.045 - 2013: 3,053.711 - Total INVESTMENT: 10,136.801 - Domestic Financed (excluding statutory) totals: - 2010: 916.833 - 2011: 1,094.829 - 2012: 1,620.219 - 2013: 1,832.007 - Total: 5,463.889 - Foreign Financed totals: - 2010: 1,068.830 - 2011: 1,488.552 - 2012: 893.826 - 2013: 1,221.705 - Total: 4,672.913 - SERVICES + INVESTMENT totals by year (in million US$): - 2010: 2,271.403 - 2011: 2,859.660 - 2012: 2,840.798 - 2013: 3,418.921 - Total: 11,390.783 - ESTIMATED COST OF THE GSGDA by year (in million US$): - 2010: 3,322.250 - 2011: 6,584.238 - 2012: 6,834.916 - 2013: 7,150.056 - Total: 23,891.459 - RESOURCE GAP by year (in million US$): - 2010: 1,050.847 - 2011: 3,724.577 - 2012: 3,994.118 - 2013: 3,731.134 - Total RESOURCE GAP: 12,500.676 ### Gap characterization and annual average - Overall resource gap of US$12,500.676 million (GH¢18,125.980 million) over 2010-2013. - Average gap of US$3,125.169 million per annum. - This represents an overall financing gap of about 52.3% over the period 2010-2013. ### Stated measures to fill the gap - Identify new financing sources including targeted bilateral partnerships in state-to-state arrangements and vigorous promotion of Public-Private Partnership. - Introduce new domestic revenue enhancing measures to widen the revenue base. - Scale-up donor inflows. - Accelerate the capacity expansion of the domestic financial markets and provide targeted support and incentives for the capital market. --- ### Financing strategy details and policy directions ### New financing sources / Bilateral state-to-state partnerships - Rationale: Inadequate budgetary and financial market resources to fund large infrastructural projects. - Target: Diversify funding beyond traditional sources to create fiscal space for large economic and social infrastructure. - Expectation: About 45.2% of capital investment under GSGDA financed through special financing arrangements (Sino-Ghana Bilateral Investment Initiatives, Korea-Ghana Bilateral Initiative, and PPPs). ### Public-Private Partnerships (PPP) - Role: Complement traditional funding sources, provide access to technology, technical know-how, large financing, and risk-sharing. - Objective: Reduce pressure on national budgetary resources and leverage private sector involvement in GSGDA interventions. ### Scaling-up donor inflows - Historical context: ODA inflows increased from US$578.96 million in 2001 to US$1,698.21 million in 2009 (nominal terms), average annual increment about 23% during the period. - Observed issue: In real terms, ODA inflows stagnated between 2002 and 2009. - MDBS: Multi-Donor Budgetary Support constitutes about 30% of donor inflows and improves commitment and predictability. - Action: Strengthen country financial management and value-for-money mechanisms to increase Development Partners’ confidence. ### Revenue-enhancing measures - Medium-term objective: Increase government revenue through multiple measures. - Proposed measures include: - Introduction of a single revenue authority. - Improving VAT collection. - Taxation of natural resources. - Reduction of tax exemptions. ### Expansion of domestic financial markets - Measures: - Accelerate financial sector reforms and capacity strengthening. - Increase banking sector capitalisation to expand banks’ risk capacity and ability to fund the private sector. - Deepen incentive mechanisms for the Ghana Stock Exchange and investors to encourage private sector access to long-term capital. *Source: Ministry of Finance and Economic Planning, 2010 (excerpts from _cr12204 - 4.1 Resource Envelope).* ### 1. Oil and Gas Development ### 1. Oil and Gas Development ### Oil and Gas Development — expenditure profile (Theme V, 2010–2013) - Sub-total for Theme V, ENERGY, OIL AND GAS INDUSTRY: 281.699 (2010); 1,257.948 (2011); 1,182.371 (2012); 879.421 (2013); Total: 3,601.438 (Million US$). - 1. Oil and Gas Development (line-item): - 2010: 23.069 (Million US$) - 2011: 342.229 (Million US$) - 2012: 203.838 (Million US$) - 2013: 204.697 (Million US$) - Total: 773.833 (Million US$) - Policy objectives and associated expenditures (Oil and Gas Development): - Convert the opportunities offered by the oil and gas sector to create jobs for the populace: - 2010: 20.700; 2011: 339.750; 2012: 200.700; 2013: 200.700; Total: 761.850 (Million US$). - Ensure that the practices of the Oil and Gas Industry are consistent with international standards of environmental sustainability: - 2010: 0.862; 2011: 0.862; 2012: 1.034; 2013: 1.241; Total: 4.000 (Million US$). - Effectively manage the potential revenue from oil and gas production: - 2010: 1.069; 2011: 1.069; 2012: 1.283; 2013: 1.539; Total: 4.960 (Million US$). - Transform the structure of the economy from production and export of primary products to a diversified industrial based economy: - 2010: 0.128; 2011: 0.238; 2012: 0.448; 2013: 0.769; Total: 1.583 (Million US$). - Strengthen institutional capacity: - 2010: 0.310; 2011: 0.310; 2012: 0.372; 2013: 0.447; Total: 1.440 (Million US$). ### Energy Supply to Support Industries and Households — expenditure profile (Theme V) - 2. Energy Supply to Support Industries and Households (line-item): - 2010: 258.630 (Million US$) - 2011: 915.719 (Million US$) - 2012: 978.533 (Million US$) - 2013: 674.724 (Million US$) - Total: 2,827.606 (Million US$) - Policy objectives and associated expenditures (Energy Supply): - Ensure increased access of households and industries to efficient, reliable and adequate energy supply: - 2010: 254.860; 2011: 871.075; 2012: 942.791; 2013: 649.724; Total: 2,718.449 (Million US$). - Diversify the national energy mix including the use of indigenous sources of energy: - 2010: 3.770; 2011: 44.644; 2012: 35.742; 2013: 25.000; Total: 109.156 (Million US$). ### Aggregate Theme V observations (numerical summary) - Theme V total by year: - 2010: 281.699 (Million US$) - 2011: 1,257.948 (Million US$) - 2012: 1,182.371 (Million US$) - 2013: 879.421 (Million US$) - Total (2010–2013): 3,601.438 (Million US$) --- ### VI. Human Development, Productivity and Employment — selected components - Sub-total for Theme VI (2010–2013): 1,109.410 (2010); 1,441.495 (2011); 1,577.153 (2012); 1,890.690 (2013); Total: 6,018.748 (Million US$). - 1. Education (Theme VI line-item): - 2010: 413.792 (Million US$) - 2011: 543.287 (Million US$) - 2012: 511.576 (Million US$) - 2013: 555.161 (Million US$) - Total: 2,023.816 (Million US$) - Policy objectives and allocations: - Increase equitable access to and participation in quality education at all levels: - 2010: 362.067; 2011: 480.451; 2012: 443.133; 2013: 482.260; Total: 1,767.911 (Million US$). - Improve quality of teaching and learning: - 2010: 14.086; 2011: 14.155; 2012: 16.285; 2013: 16.916; Total: 61.442 (Million US$). - Improve access to quality education for people with disability: - 2010: 1.578; 2011: 1.589; 2012: 1.736; 2013: 1.910; Total: 6.812 (Million US$). - Promote science and technical education at all levels: - 2010: 2.803; 2011: 6.599; 2012: 6.603; 2013: 6.603; Total: 22.609 (Million US$). - Strengthen linkage between tertiary education and industry: - 2010: 0.046; 2011: 0.386; 2012: 0.390; 2013: 0.390; Total: 1.211 (Million US$). - Integrate essential knowledge and life skills into school curriculum: - 2010: 0.497; 2011: 7.393; 2012: 7.443; 2013: 7.498; Total: 22.831 (Million US$). - Improve Management of Education service delivery: - 2010: 32.714; 2011: 32.714; 2012: 35.986; 2013: 39.584; Total: 140.999 (Million US$). - 3. Health (Theme VI line-item): - 2010: 645.343 (Million US$) - 2011: 789.848 (Million US$) - 2012: 990.200 (Million US$) - 2013: 1,262.505 (Million US$) - Total: 3,687.897 (Million US$) - Policy objectives and allocations: - Bridge the equity gaps in access to health care and nutrition services and ensure sustainable financing arrangements that protect the poor: - 2010: 63.214; 2011: 83.866; 2012: 159.688; 2013: 168.900; Total: 475.668 (Million US$). - Improve governance and strengthen efficiency and effectiveness in health service delivery: - 2010: 126.852; 2011: 140.579; 2012: 155.723; 2013: 172.285; Total: 595.439 (Million US$). - Improve access to quality maternal, neonatal, child and adolescent health services: - 2010: 230.941; 2011: 275.101; 2012: 319.859; 2013: 365.214; Total: 1,191.115 (Million US$). - Prevent and control the spread of communicable and non-communicable disease and promote healthy lifestyles: - 2010: 119.939; 2011: 163.454; 2012: 205.634; 2013: 384.361; Total: 873.388 (Million US$). - Expand access to and improve the quality of institutional care, including mental health service delivery: - 2010: 104.398; 2011: 126.847; 2012: 149.296; 2013: 171.745; Total: 552.286 (Million US$). *Source: _cr12204 - 1. Oil and Gas Development* ### 4. HIV, AIDS, STDs, and TB ### 4. HIV, AIDS, STDs, and TB ### Ensure the reduction of new HIV and AIDS/STI/TB transmission - Expenditure Summary (in Million US$): - 2010: 2.482 - 2011: 2.496 - 2012: 3.855 - 2013: 4.014 - Total: 12.847 ### Promote reduction of the impact of HIV and AIDS related morbidity and mortality - Expenditure Summary (in Million US$): - 2010: 2.339 - 2011: 2.354 - 2012: 3.723 - 2013: 3.882 - Total: 12.298 ### Enhance management of HIV, AIDS, STI and TB response to promote healthy lifestyles - Expenditure Summary (in Million US$): - 2010: 0.136 - 2011: 0.136 - 2012: 0.129 - 2013: 0.129 - Total: 0.530 ### (Cross-cutting / small-scale interventions) - Expenditure Summary (in Million US$): - 2010: 0.007 - 2011: 0.006 - 2012: 0.003 - 2013: 0.003 - Total: 0.019 *Source: _cr12204 - 4. HIV, AIDS, STDs, and TB* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2012/_cr12204.pdf_