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2020-2023 Budget Preparation Guidelines

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2020-2023 Budget Preparation Guidelines In case of reply, the number and date of this letter should be quoted Our Ref: B.159/BDRU/09/19/BPG.1 Tel No: +233 0302 662448 +233 020 2030344 +233 050 1290125 13th AUGUST, 2019 GUIDELINES FOR THE PREPARATION OF THE 2020-2023 BUDGET The 2020-2023 Budget Preparation Guidelines is being forwarded for the information of Honourable Sector Ministers, Heads of Institutions, Chief Directors and members of the Budget Committees consistent with the provisions under Article 179 (1) of the 1992 Constitution, Section 20 (1) of the Public Financial Management Act, 2016 (Act 921) and Regulation 20 (3) of the Public Financial Management Regulations, 2019 (L. I. 2378). 2. The attached Budget Preparation Guidelines provides instructions on the processes and procedures for the preparation of the 2020-2023 Budgets and indicative medium-term budget ceilings for Ministries, Departments and Agencies (MDAs) and Metropolitan, Municipal and District Assemblies (MMDAs). 3. The President’s Coordinated Programme of Economic and Social Development Policies (CP) (2017-2024), which informed the National Medium Term Development Policy Framework (NMTDPF) 2018-2021, will be the basis of the 2020-2023 medium term budget complemented by MDA and MMDA medium- term and annual action plans. 4. Due to constraints in resource mobilization, Hon. Ministers and District Chief Executives are reminded to ensure that their MDAs/MMDAs allocate resources to strategic and critical programmes, as reflected in the CP, in their 2020-2023 Budget. Additionally, Internally Generated Funds (IGFs) and Development Partner (DP) Funds should be appropriately budgeted for as failure to budget for such funds, will result in the inability to utilize them during budget implementation. 5. Budget Hearings have been scheduled as per Appendix 3 of the Guidelines. Honourable Ministers and Chief Directors are to take note of the date assigned to their MDAs and prepare adequately to attend with their core teams. Statutory Fund Managers are also required to attend the budget hearings together with their respective supervisory Ministries on the dates indicated. 6. Colleague Ministers are further urged to take ownership and lead the entire budget preparation process, to ensure that all government priority programmes are fully captured within the approved expenditure ceilings provided for each MDA. 7. Chief Directors are similarly encouraged to comply with all directives outlined in the Guidelines and ensure timely submission of all requisite budget documents to the office of the Director of Budget five working days before their scheduled hearings. 8. Counting on your cooperation for a smooth budget preparation. KEN OFORI ATTA MINISTER ALL SECTOR MINISTERS ALL REGIONAL MINISTERS ALL CHIEF EXECUTIVES (MMDAs) cc. H. E. The President, Jubilee House H. E. The Vice President, Jubilee House The Chief of Staff, Jubilee House The Hon. Minister, MoF The Chairman, NDPC The Director-General, NDPC The Hon. Deputy Ministers, MoF The Head of Civil Service The Auditor-General The Controller and Acct.-General The Head of Local Govt. Service All Chief Directors All Heads of Departments/ Agencies All Regional Coordinating Directors All Regional Budget Officers All Regional Econ. Planning Officers All District Coordinating Directors All District Budget Officers 2020-2023 BUDGET PREPARATION GUIDELINES Prepared and Issued by Ministry of Finance 2020-2023 Budget Preparation Guidelines The 2020-2023 Budget Preparation Guidelines is available online at: www.mofep.gov.gh i 2020-2023 Budget Preparation Guidelines TABLE OF CONTENTS List of Tables ........................................................................................................... iii Acronyms and Abbreviations ................................................................................ iv SECTION ONE: INTRODUCTION ............................................................................. 1 Broad Framework for 2020-2023 Budget ................................................................ 2 Focus of the 2020 Budget ....................................................................................... 2 Legal and Regulatory Provisions ............................................................................ 2 The Economic Outlook of the Country .................................................................... 3 Medium-Term Development Policies ...................................................................... 4 SECTION TWO: INSTRUCTIONS FOR PREPARING THE 2020-2023 BUDGET .... 6 Budget Classification, Chart of Accounts and SDGs ............................................... 6 Programme Based Budgeting (PBB) ...................................................................... 6 Preparation of Budget Estimates ............................................................................ 6 MDAs Training on Budget Guidelines ..................................................................... 8 2020 Budget Hearings ............................................................................................ 8 Revenue Management ............................................................................................ 9 Budgeting for Compensation of Employees .......................................................... 10 Budgeting for Goods and Services ....................................................................... 11 Budgeting for Capital Expenditure (CAPEX) ......................................................... 11 Multi-Year Expenditure Commitments .................................................................. 12 Budgeting for SOEs and JVCs .............................................................................. 13 Costing of Operations and Projects ...................................................................... 14 Annual Budget Funding Amount (ABFA) .............................................................. 14 SECTION THREE: OTHER BUDGET PREPARATION ISSUES ............................ 15 Social Intervention Programmes ........................................................................... 15 Aid on Budget ....................................................................................................... 15 Statutory Funds ..................................................................................................... 15 Budgeting for Crosscutting Issues: ....................................................................... 16 SECTION FOUR: SPECIFIC INSTRUCTIONS FOR MMDAs AND REGIONAL COORDINATING COUNCILS (RCCs) .................................................................... 18 Revenue................................................................................................................ 18 Grants/Transfers ................................................................................................ 18 ii 2020-2023 Budget Preparation Guidelines Internally Generated Funds (IGF) ...................................................................... 18 Property Valuation/Revaluation ......................................................................... 18 Expenditure ........................................................................................................... 19 Budgeting for Compensation of Employees ....................................................... 19 Budgeting for Goods and Services .................................................................... 19 Budgeting for Capital Expenditure ..................................................................... 19 MPs Common Fund ........................................................................................... 19 Budgeting for Sanitation .................................................................................... 19 Operationalisation of Audit Committees ............................................................. 20 MMDA Budget Hearings .................................................................................... 20 Budget Submission/Approval ............................................................................. 20 SECTION FIVE: CONCLUSION .............................................................................. 21 APPENDICES .......................................................................................................... 22 Appendix 1: Schedule of MDA Training on Budget Guidelines ............................ 23 Appendix 2: Schedule of MDA Budget Hearings .................................................. 25 Appendix 3: Budget Ceilings / MTEF ................................................................... 27 Appendix 4: Template for Budget Proposal .......................................................... 41 Appendix 5: Details of Outstanding Commitments ............................................... 44 Appendix 6: Trend of IGF Collections by Revenue type (2016-2023) .................. 45 Appendix 7: IGF Retention ................................................................................... 46 Appendix 8: List of Staff Paid by IGF ................................................................... 47 Appendix 9: Staff Strength/Payroll Information .................................................... 48 Appendix 10: List of Retirees ............................................................................... 49 Appendix 11: Schedule of Allowances ................................................................. 50 Appendix 12: Financial Clearance ....................................................................... 51 Appendix 13: Chart
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