The hearings, instituted in 2011, forms part of the fiscal decentralisation reforms to provide opportunity for the MMDA’s to review their performance and discuss priority programmes and projects in the coming year within the national framework.

Nii Laryea Afotey Agbo, Regional Minister, in his opening remarks said the hearings is also to enhance the transparency of the budget formulation processes and provide opportunity to stakeholders to participate in the formulation of the district budget thereby strengthening their accountability.

He said in addition to these hearings reforms including composite budget, regional integrated budget, programme based budgeting, use of activate system to prepare the budget at the local level among others have also been implemented.

These reforms have led to significant improvements in the budget processes and service delivery.  Nii Agbo noted that it is in this regard that the Programme Based Budget (PBB) was implemented this year to align the budget systems at the local level to the national and change the budget classification from activities to programmes.

He said the PBB is to ensure stronger linkage between public spending and determined results, ensure improved efficiency in the allocation and utilisation of resources, improve accuracy of budget information, and shift emphasis of budget management from activities to delivery of outputs.

He noted that a new Public Financial Management (PFM) law has been enacted to underpin Ghana’s ongoing PFM reforms designed to address the persistent weaknesses in the system and help promote fiscal discipline, transparency and accountability.

Nii Agbo said the preparation and implementation of the MMDA’S composite budget has been activity based in order to develop the programme structure and codes. It has also undertaken training to build the capacity at the MMDA level to facilitate the implementation of the budget.

He said the Ministry is aware of some challenges of the implementation process and believe they are as a result of developments on both the global and domestic front.  He however noted that government is pursuing measures to ensure the achievements of the nation’s fiscal policy objectives. He urged the MMDA’s to support the efforts of government to control the wage bill and free more resources for infrastructural development and improve service delivery.

“I wish to admonish your respective MMDA’s to step up their local revenue generation and reduce the overdependence on central government revenue transfers.”