P R E S E N T E D A T :

T H E M O L E X X I I I C O N F E R E N C E 2 2 N D - 2 4 T H A U G U S T 2 0 1 2

B Y : H A W A N I B I A M E N G A - E T E G O

G R A S S R O O T S A F R I C A

Public Expenditure Tracking Report 2010-12

Supported by:

WATER AID IN GHANA

Outline of the presentation

Background the budget tracking project

Aim of the project

Overview of the findings of the last 3 years

Issues of Disbursement and Absorptive Capacity

Changes Faced over the 3 years

Conclusion

Background-1

Started in 2009 as a pilot - Level: National (tracking national budget allocation to the WASH

sector - Budget Component: Government of Ghana component - Institutional Coverage: MWRWH, GWCL and CWSA - Scope: track GOG allocation and disbursement for services and

investment

2010-2011 the coverage was extended to include - MWRWH and all its water agencies (GWCL, CWSA, WRC), and

MLGRD and its sanitation agency (EHSD) and SHEP under GES - Scope: Overall budget allocation to the WASH sector Ministries - A comparison of this allocation to MOE and MOH. - Check the percentages of the approved WASH sector ministerial

budgets against total national budget - Percentage of GOG contribution and Donor contribution - Actual receipts against budgetary allocations - Issues of absorptive capacity as well as - Problems associated with the disbursement process

Aim of the project

To advocate for increased funding for investment and services and particularly the GOG component of the WASH funding using the findings of the budget tracking and

To monitor GOG commitments made to the WASH sector

Overview of the Findings

1. 2009 findings

GOG Budget Allocations for Services and Investments

MINISTRY/AGENCY SERVICE S GHC ‘000’ INVESTMENTS GHC ‘000’

GWCL 6,319 1,342,277

CWSA 30,533 30,231,134

MWRWH 302,033 57,175,184*

Disbursements from the MOFEP for the period 1st January to 30th September, 2009 were as follows:

GWCL 5,206 (80%) 7,312,499 ** (GOG127,116)

CWSA 7,633 (25%) 3,029,978.54(10%)

MWRWH 182,044 11,999,115.07

* Includes HIPC funds of GHc19.5mn

**Total disbursement to GWCL for Investments includes GHC 7,185,383.00 from

the HIPC funds.

2. 2010 & 2011 Findings: Grand Total Allocation and % of the Total National Budget to

the WASH sector against that of MOE & MOH

2010

Ministry G.Total to Sector

GHȼ

Total National Budget

GHȼ

% of Total National

Budget

MWRWH 178mn 6,5bn 2.70%

MLGRD 233mn 3.55%

MOE 1,7bn 26.26%

MOH 726mn 11.03%

2011

MWRWH 558,6mn 7,9bn 7.0%

MLGRD 241,3mn 3.0%

MOE 1,6bn 20%

MOH 987,4mn 12.4%

2010 & 2011 Findings continued Overview of the %age of total GOG and total Donor

allocation to the four sectors in GHcm 2010

Ministry Total GOG

Total Donor

Grand Total to Sector

% of Total GOG to Sector

% of Total Donor to Sector

MWRWH 23mn 138mn 178mn 13% 78%

MLGRD 76mn 88mn 233mn 32.65% 37.85

MOE 1.2bn 89mn 1.7bn 73% 5.15%

MOH 400mn 110mn 726mn 55% 15.16%

2011

MWRWH 16,6mn 529mn 558mn 2.97% 94.8%

MLGRD 77,1mn 88mn 241mn 31.97% 36.6%

MOE 1,4bn 89mn 1,6bn 92.17% 5.5%

MOH 406mn 219mn 987mn 41.18% 22.22%

2010 & 2011 Findings continued

Total allocations for WASH Agencies 2010-2011 in GHc

2010

Sector Agency Total GOG Total IGF Total Donor Grand Total to Agency

GWCL 2,048,531 0 69,346,510 71,395,041

CWSA 6,681,573 0 42,549,862 49,231,435

WRC 382,718 30,522 0 413,240

EHSD 1,565,259 0 0 1,565,259

2011

GWCL 1,028,369 0 223,248,500 224,276,869

CWSA 4,774,065 0 32,608,756 37,382,821

WRC 283,585 651,108 652,500 1,587,193

EHSD 5,613,137 0 0 5,613,137

Details of GOG allocation and Disbursement for 2010 in GHc

Ministry/Agency P.E ADMIN SERVICES INVESTMENT TOTAL

ALLOCATED

MWRWH 8,478,339 984,524 342,807 13,336,000 23,141,670

MLGRD 72,748,751 660,918 561,308 2,389,040 76,360,018

CWSA 2,281,463 562,190 34,655 3,803,265 6,681,573

GWCL - - 7,172 2,041,359 1,565,259

WRC 153,076 16,751 8,755 204,136 382,718

EHSD 1,397,225 32,877 35,157 100,000 1,565,259

Disbursement

MWRWH 13,157,397.42 1,070,856.92 164,988.03 27,733,428.69 42,126,671.06

MLGRD No Data same same Same same

CWSA 1,301,506.18 562,623.56 17,328 318,101 2,199,558.74

GWCL - - 13,762 5,509,013.04 5,522,775.04

WRC 283,301.85 19,362.59 2,188.48 42,949.39 347,802.31

EHSD 721,922 55,541 16,165 85,507 879,135

Details of GOG allocation and Disbursement for 2011 in GHc

Sector Agency

P.E Admin Services Investment

Total Allocation

CWSA 2,349,906 485,372 37,154 1,901,633 4,774,065

GWCL - - 7,689 1,020,680 1,028,36

WRC 157,668 14,462 9,386 102,068 283,585

EHSD

238,039 allocated

from SIP*

5,506,365 32,877 23,895 50,000 5,613,137

Disbursement

CWSA 2,877,951 468,837 - 544,459 3,891,247

GWCL No data No data No data

No data No data

WRC - - 994, 827 139,772** 1,134,599

EHSD - - 10,500 3,952

*The additional SIP allocation of 238,039 to EHSD was all received

** includes donor component for investment

Issues of Disbursements and Absorptive Capacity

1. Disbursements:

The major problem with GOG disbursements that is recurrent

in the 3 years tracking has been DELAY which makes it

difficult for the sector agencies to carry out their mandate

efficiently.

2. Absorptive Capacity:

All the officers we interviewed at the sector agencies denied

having problem with absorption.

-CWSA however, indicated that the DA’s are not able to absorb all the allocations due to the delays in awarding contracts- caused by Cumbersome Procurement procedures

Challenges over the 3 years-1

Our major challenge has been accessing information

- It has been extremely tiring trying to get budget officers to give out information

- Some have continued to support us but others for reasons unknown to us have not been supporting. For instance for 2011 GWCL was not forthcoming and so we could not obtain disbursement information for that year.

Another challenge has been funding

Water Aid in Ghana has supported this initiative for the past 3 years and we commend them for their commitment and support to this project. Nevertheless we still need to leverage some additional funding to sustain this project and to increase momentum and impact.

Challenges-2

The Last challenge which applies only to the 2011 tracking has been the long absence of the project manager- who went for studies and this had an overall impact on delay and the outcome of project. But hopefully 2012 will see improvement and renewed momentum in the project.

Conclusion

Generally, allocations to the WASH sectors increased significantly in 2011,

it still goes without saying that the GOG component funding keeps reducing

Further whiles the Donor component keeps increasing.

Though, the donor component includes loans contracted by GOG and could be

considered as GOG funding and perhaps the increase could be due to increased

loans contracted and/or increased grants in order to fulfil SWA commitments.

This is commendable because it shows that government is committed to

redeeming the commitments it made

BUT

Considering increasing global fears that the next world wars could occur over

water, we are of the view the reverse should be happening i.e. gradually

increasing GOG allocation from tax and non-tax based (e.g. trade receipts)

revenue and reducing the over-reliance on donors (loans & Grants) to finance the

Sector. This will be KEY not just to guarantee the rights of citizens to access these

basic needs of life but also security and total sovereignty as a nation.

THANK YOU FOR YOUR ATTENTION