General Budget Support

Danida’s second phase of general budget support – Multi Donor Budget Support (MDBS) Phase II, covers the period 2010 to 2014. 

About the programme 

The strategic approach and design for MDBS Phase II is the provision of funding support of DKK357 million over the period 2010 - 2014, through two components – DKK325 million for general budget support; complemented by DKK27 million contribution to strengthening Public Finance Management (PFM) at the strategic level with a residual amount of DKK5 million for reviews/studies and audits.  The MDBS disbursements are front-loaded to complement the flow of Ghana’s oil revenues. 

Continued provision of MDBS is justified based on assessment of the 10 Danish Budget Support principles – which highlights the good progress made in terms of positive trends in development outcomes generally; the improvements in respect of human rights, democracy, poverty reduction, and harmonisation; while pinpointing areas of slow pace of reforms and drawing attention to areas of caution including the need for strengthened public financial management and monitoring. The justification indicates Ghana’s need for support in key infrastructure areas to accelerate growth and reduce poverty; it also portrays expectations of progress in human development.

The MDBS Phase II programme is providing support for the Ghana Shared Growth and Development Agenda and using the MDBS Progress Assessment Framework, and is responsive to both shocks/emergencies situations, as well as to medium and longer term outcomes such as the MDGs.

Denmark uses an 80/20 split between base and performance-related tranches for its disbursements. The proportion assigned to the base payment reflects the importance given to the overall assessment of progress with regard to poverty reduction and economic growth which looks beyond individual sectoral indicators. Support is also being provided for audits, consultancies and studies. To improve the effectiveness of budget support resources, MDBS disbursements are structured to rely on triggers that signify progress in selected priority areas including in public financial management and improvements in governance institutions that are essential for transparency and accountability.

For Component 2, support to the Ghana Integrated Financial Management Information System, supports Government of Ghana to improve the effectiveness of service delivery and the allocation of scarce resources and assure an accountable, more effective and transparent government. Denmark is providing this support through a pooled fund arrangement together with the European Union, DFID and the World Bank.

Please find the programme document on the bar on the right.

For further information follow this link to the Ministry of Finance and Economic Planning in Ghana.