The Finance Ministry of Ghana has announced its intention to present the “Expenditure in Advance of Appropriation” for the first quarter of 2025 to Parliament by November 15, 2024.
Expenditure in Advance of Appropriation is a financial practice where a government or public institution spends money before the formal approval of a budget by the legislative body. This is typically done in situations where the fiscal year has started, but the annual budget (appropriation bill) has not yet been passed.
This submission is in accordance with 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).
As 2024 marks an election year, the Ministry is also preparing a draft Budget Statement and Economic Policy for 2025, alongside the three-month Expenditure in Advance of Appropriation, known as a “Vote on Account.” The full Budget Statement and Economic Policy Statement for the 2025 financial year will be presented to Parliament in the first quarter of 2025.
The 2025-2028 Budget Preparation Guidelines are currently being circulated to Heads of Covered Entities and members of Budget Committees for compliance. These guidelines outline the processes and procedures necessary for the preparation of the 2025 budget, including policy priorities for the medium term, such as the IMF-Supported Post COVID-19 Programme for Economic Growth (PC-PEG), expenditure ceilings for 2025, and standardized templates for budget preparation.
Covered Entities have been reminded to align their expenditure ceilings with the Medium-Term Development Policy Framework, the IMF-Supported PC-PEG, and other governmental priorities. Heads of Covered Entities are encouraged to prioritize ongoing programs and projects in their budget proposals while adhering strictly to the communicated provisional ceilings.
In addition, the Ministry has indicated that budget hearings will be organized to support the development of the 2025-2028 budget, as detailed in the Appendix of the Guidelines. Ministries, Departments, and Agencies (MDAs) are urged to comply with the established timelines and ensure participation in these engagements alongside their respective Statutory Fund Managers, State-Owned Enterprises, and Agencies.
Chief Directors are also encouraged to follow the directives set out in the guidelines and ensure timely submission of relevant budget documents to bdru@mofep.gov.gh, three working days prior to their scheduled hearings.
The Finance Ministry is counting on the cooperation of all stakeholders in this crucial budgetary process as it prepares for the upcoming financial year.