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Other Budget Preparation Issues 2022-2025 Budget Preparation Guidelines 2022-2025 Budget Preparation Guidelines Table of Contents Acronyms and Abbreviations ..................................................................................... iii SECTION ONE: INTRODUCTION .................................................................................. 1 SECTION TWO: ECONOMIC DEVELOPMENT AND OUTLOOK ................................. 2 Recent Economic Developments ................................................................................. 2 Medium-Term Fiscal Framework ................................................................................. 4 SECTION THREE: INSTRUCTIONS FOR PREPARING THE 2022-2025 BUDGET ..... 8 Programme Based Budgeting (PBB) ........................................................................... 8 Budgeting for Compensation of Employees ............................................................... 10 Budgeting for Goods and Services ............................................................................ 10 Budgeting for Capital Expenditure (CAPEX) .............................................................. 11 Multi-Year Ceilings ..................................................................................................... 11 Selection Criteria for Investment Projects .................................................................. 12 Budgeting for State-Owned Enterprises and Public Corporations .............................. 13 Expenditure Under Statutory Funds ........................................................................... 13 Sustainable Development Goals (SDGs) ................................................................... 13 Aid on Budget ............................................................................................................ 14 Anti-Corruption ........................................................................................................... 14 Climate Change/Gender Mainstreaming .................................................................... 14 Exchange Rate .......................................................................................................... 14 Tax Incentives and Exemptions ................................................................................. 15 SECTION FOUR: OTHER BUDGET PREPARATION ISSUES ................................... 16 Annual Budget Funding Amount (ABFA) Beneficiaries .............................................. 16 Budgeting for COVID-19 ............................................................................................ 16 MDAs Budget Production / Preparation Workshop .................................................... 16 MDAs 2022 Budget Hearings ..................................................................................... 16 SECTION FIVE: CEILINGS FOR THE PREPARATION OF THE BUDGET ESTIMATES OF LOCAL GOVERNMENT AUTHORITIES ........................................... 18 Revenue..................................................................................................................... 18 Expenditure Budgeting ............................................................................................... 19 MMDA Budget Hearings ............................................................................................ 21 Budget Approval/Submission ..................................................................................... 21 SECTION SIX: CONCLUSION ..................................................................................... 22 i 2022-2025 Budget Preparation Guidelines APPENDICES ............................................................................................................... 23 Schedule of Appendices and Templates .................................................................... 23 Appendix 1: Schedule of MDA Budget Production Workshop ................................... 25 Appendix 2: Schedule of MDA Budget Hearings ....................................................... 27 Appendix 3A: 2022 MDA Indicative Ceilings – Administration Sector (GoG & ABFA) ........................................................................................................................ 29 Appendix 3B: 2022 MDA Indicative Ceilings – Economic and Infrastructure Sectors (GoG & ABFA) ........................................................................................................... 32 Appendix 3C: 2022 MDA Indicative Ceilings – Social and Public Safety Sectors (GoG & ABFA) ..................................................................................................................... 35 Appendix 4A: 2023 MDA Indicative Ceilings – Administration Sector ....................... 38 Appendix 4B: 2023 MDA Indicative Ceilings – Economic and Infrastructure Sectors 39 Appendix 4C: 2023 MDA Indicative Ceilings – Social and Public Safety Sectors ..... 40 Appendix 5A: 2024 MDA Indicative Ceilings – Administration Sector ....................... 41 Appendix 5B: 2024 MDA Indicative Ceilings – Economic and Infrastructure Sectors 42 Appendix 5C: 2024 MDA Indicative Ceilings – Social and Public Safety Sectors ..... 43 Appendix 6A: 2025 MDA Indicative Ceilings – Administration Sector ....................... 44 Appendix 6B: 2025 MDA Indicative Ceilings – Economic and Infrastructure Sectors 45 Appendix 6C: 2025 MDA Indicative Ceilings – Social and Public Safety Sectors ..... 46 Appendix 7A: 2022 Indicative Ceilings – OLGS and RCCs ...................................... 47 Appendix 7B: MMDA 2022 Indicative Ceilings – Greater Accra Region ................... 50 List of Tables Table 1: Summary of 2022 and Medium Term Fiscal Framework ................................... 6 Table 2: 2022 and Medium Term Fiscal Framework Total Revenue and Grants ............ 7 Table 3: 2022 and Medium Term Fiscal Framework Total Expenditures ........................ 7 Table 4: 2021 Budget Expenditure performance by economic items .............................. 8 ii 2022-2025 Budget Preparation Guidelines Acronyms and Abbreviations ABFA Annual Budget Funding Amount CAPEX Capital Expenditure CIEA Composite Index of Economic Activity CoA Chart of Accounts COVID-19 Coronavirus Disease of 2019. DACF District Assemblies Common Fund DACF-RFG District Assemblies Common Fund-Responsive Factor Grant DCMIS Development Cooperation Management Information System DP Development Partner FDI Foreign Direct Investment FRA Fiscal Responsibility Act GDP Gross Domestic Product GES Ghana Education Service GH¢ Ghana Cedi GhanaCARES Ghana COVID-19 Alleviation and Revitalization of Enterprises Support GHS Ghana Health Service GIFMIS Ghana Integrated Financial Management Information System GIR Gross International Reserves GoG Government of Ghana GSS Ghana Statistical Service IGFs Internally Generated Funds IPPs Independent Power Producers KPIs Key Performance Indicators L.I. Legislative Instrument MDAs Ministries, Departments and Agencies MMDAs Metropolitan, Municipal and District Assemblies MMDCDs Metropolitan, Municipal and District Coordinating Directors MMDCEs Metropolitan, Municipal and District Chief Executives MoF Ministry of Finance MoU Memoranda of Understanding MPR Monetary Policy Rate MTDP Medium Term Development Plan NACAP National Anti-Corruption Action Plan NMTDPF National Medium Term Development Policy Framework OLGS Office of Local Government Service OPEC+ Organization of the Petroleum Exporting Countries PBB Programme Based Budgeting PCs Public Corporations PIP Public Investment Plan RCC Regional Coordinating Council iii 2022-2025 Budget Preparation Guidelines RIAP Revenue Improvement Action Plan RIB Regional Integrated Budget SDGs Sustainable Development Goals SOEs State Owned Enterprises UNICEF United Nations International Children's Emergency Fund WASH Water, Sanitation and Hygiene iv 2022-2025 Budget Preparation Guidelines SECTION ONE: INTRODUCTION 1. In accordance with Article 179 (1) of the 1992 Constitution, Section 20 of the Public Financial Management Act, 2016 (Act 921) and Section 122 of the Local Governance Act, 2016 (Act 936), the Budget Preparation Guidelines is issued to facilitate the preparation of the 2022-2025 Budget by Ministries, Departments and Agencies (MDAs) as well as Metropolitan, Municipal and District Assemblies (MMDAs). 2. The Guidelines provides the policy direction of government, instructions on the processes and procedures as well as budget expenditure ceilings to guide MDAs and MMDAs towards the preparation of the 2022-2025 Budget. 3. Principal Account Holders, Principal Spending Officers and members of Budget Committees are to ensure strict compliance with the Guidelines. Focus of 2022 Budget 4. Government of Ghana recognises the need to be at the forefront to promote the building blocks for an inclusive and sustainable recovery post COVID-19. Hence, the focus for the 2022 budget and the medium term is to create opportunities and provide solutions towards achieving sustainable and broad-based economic growth without harming the climate or leaving families in poverty. Government, therefore, will focus on revitalising and transforming the economy. 5. The approach is to catalyse the private sector in targeted areas to fast-track industrialisation, competitive import substitution, digitalisation, export expansion and the creation of decent jobs, particularly for the youth. 6. In addition, other priority areas for 2022 and the medium term will include: Supporting the health sector and expanding social safety nets; COVID-19 containment measures; Developing our
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