Budget Credibility and Global Surprises in Ghana: A Critical Reflection through PEFA Framework

Abstract

Purpose - Public financial management practices in emerging economies have evolved overtime with the aim of improving national budget systems and promoting sustainable development. Therefore, the integration of the Ghanaian economy into the global one does not in any way immune it from shocks brought about by the Covid-19 pandemic and the Russian-Ukraine war. The approach in this paper is to document my thoughts and opinion on Ghana’s public financial management practices in the context of global surprises. Design/methodology/approach - The PEFA framework is used to assess the budget credibility of Ghana. Findings – The findings shows that although a lot has been done to sanitise the public space in budgetary management, there is glowing evidence that suggest the public purse is riddled with systemic culture of corruption and mismanagement. Originality/Value – Most developing economies have very good blue-prints on how to manage resources, but when it comes to actualising the imports of these blue-prints, there is a challenge. Ghana’s experience is commendable and worth being brought to the fore for all economies in the African region and beyond to emulate.

Keywords

• Covid-19
• Public Financial Management (PFM)
• Russian-Ukraine war
• Budget credibility
• Ghana