EU resumes budgetary assistance to Ghana, expected to release €161m
The European Union (EU) has resume budget support disbursements to Ghana and is expected to release €161.38 million.
The support is aimed at four areas: €105.63 million to support implementation of the Ghana Shared Growth and Development Agenda II, the national development plan for 2014-2017.
The EU would release €1.25 million to support the Ministry of Health in implementing the Millennium Development Goal (MDG)-Acceleration Framework and country action plan to reduce maternal mortality to achieve MDG 5.
Another €17.5 million is expected to support the decentralisation reform process aimed at improving service delivery at the local level and seven million Euros to support the preparation and implementation of policy reforms in the Environment and Natural Resources sector, promoting effective forest law enforcement and the development and implementation of the National Climate Change Strategy.
In a statement signed by William Hanna, EU Ambassador and copied to the Ghana News Agency in Accra on Saturday said the Commission stands ready to support Ghana in pursuing its development agenda and particularly in the implementation of the challenging structural reforms ahead.
The EU explained that the sound implementation of the International Monitory Fund (IMF) programme would be essential to restore macro-economic stability with a view to create an enabling framework for development, investment and job creation.
“A comprehensive public financial management reform, including all necessary actions to combat any irregularities and mismanagement of public payroll, will also be fundamental,” the EU stated.
The EU said the resumption of budgetary support to Ghana is based on the nation’s three-year extended credit facility programme with the IMF.
The EU said the IMF programme would serve to address the macro-economic imbalances which prevented the Commission to stop the disbursement of budgetary support to Ghana at the end of 2013.
The statement said the Ghana/IMF package includes a comprehensive reform package on the two aspects that were the main sources of concern for the EU: fiscal deficit and debt sustainability.
In addition; “we welcome the adoption and publication in March 2015 of the Government’s Payroll Action Plan to address payroll irregularities.
“In this regard we are also satisfied to note that the IMF programme includes a strong public financial management component and integrates important benchmarks of this action plan.
“The EU will continue to closely monitor progress in these two areas,” the statement said.”
Source: GNA