EU cuts Ghana budget support to €24m in 2012

The European Union (EU) today July 6, 2012 announced that it has disbursed a total of €24 million to the Ghana government through the country’s Multi-Donor Budget Support (MDBS) framework for the year 2012, a reduction on the €26.4 million it gave the country in 2011.

But the EU indicated it is committed to providing more support in strengthening of Ghana’s institutions and systems with a key focus on Public Finance Management particularly in view of the increasing need for more robust national institutions and systems in order to improve the effectiveness of aid.

The 2012 budget support disbursement, which is in context of the Millennium Development Goals Contract (MDG-Contract), follows the satisfactory conclusions of the 2011 MDBS annual review, conducted last May, the EU said in a statement.

The MDG-Contract, which is the EU’s approach under the 10th European Development Fund (EDF) for longer term and a more predictable general budget support, was signed by the EU and the Ghana government in July 2009.

Under the financing agreement of the MDG-Contract, the EU is to provide a total of €209 million as general budget support to Ghana over the years 2009-2014, with an overall objective of contributing to sustainable growth and poverty reduction in Ghana so that the country can attain middle-income status including the achievement of the MDGs.

By Ekow Quandzie