Ghana - Joint Review of Public Expenditure and Financial Management
This Chapter discusses Ghana's efforts in 2009 and 2010 to restore macro-economic stability through fiscal consolidation. It underlines that a substantial fiscal adjustment was undertaken, and yielded important results in terms of foreign curr...
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| Format: | Public Expenditure Review |
| Language: | English |
| Published: |
World Bank
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000386194_20120315001312 http://hdl.handle.net/10986/2833 |
| Summary: | This Chapter discusses Ghana's
efforts in 2009 and 2010 to restore macro-economic stability
through fiscal consolidation. It underlines that a
substantial fiscal adjustment was undertaken, and yielded
important results in terms of foreign currency reserves
position, consumer prices and exchange rate stability. The
adjustment mostly took the form of expenditure containment,
and had initially a significant impact on overall economic
activity through its negative impact on aggregate demand.
This effect was compounded by the absence of relay from the
private sector, which found it difficult to access credit
from a domestic financial sector crippled with non
performing loans, the latter originating for a large extent
from the continued accumulation of public expenditure
arrears. Meanwhile, Ghana improved domestic resource
mobilization, though from a low base. This joint review of
public expenditure and financial management is an attempt to
fill this gap and re-focus attention on public expenditure
effectiveness. The review aims at providing a comprehensive
picture of public expenditure patterns. It focuses on a set
of sectors, such as health and education, as well as on two
important cross-cutting issues from a policy perspective,
the wage bill and the fiscal decentralization. |
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