The Ghanaian Economy: Annual Review 2013-2014 Theme: Ghana’s Public Financial Management

This annual report on the economy of Ghana for 2013-14 is a combined edition and devoted to Public Finance Management. The content comprises policies, legal frameworks, institutions, processes and mechanisms by which the public resources are managed and how it is accounted for. Persistent fiscal deficits, current account deficits, mounting public debt and the consequent fiscal bottlenecks in the past decade once again bring government’s spending and the machinery to account for public resources into a driving role in economic management. The issues raised by the deficits and the debt servicing have gained considerable momentum of late in public conversation as public institutions, especially those in education and health, grapple with shortfalls in the minimum spending required to deliver the desired levels of basic services to the population. The report is in two parts: Part I presents a review of economic performance over the period 2013-2014, and Part II is devoted to public financial management. The report focuses on three main issues: an overview of public finances in the past decade, the evolution of PFM in the past three decades, and finally on the nature of debt management in the near term. An overview is also provided of the sources of Ghana’s persistent fiscal deficits. The report highlights the role of the Legislature and Auditor General in PFM and concludes by drawing lessons from the experiences of other countries to provide key recommendations for ensuring the success of the next generation of PFM reforms.