Accra, Oct. 21, GNA – The United Kingdom, on Thursday, signed a memorandum with Ghana to provide the nation’s public financial management system with a £12 million support towards better revenue utilisation and accountability.
The Ghana Integrated Financial Management Information System (GIFMIS) is a project that aims to improve the effectiveness of expenditure, reduce wasteful spending and make it easier to track what government monies have been spent on.
Mr Eric Hawthron, Country Director of the United Kingdom’s Department for International Development, (DFID) who signed the agreement on behalf of his country, explained that £10 million out of the total grant will be directed to the GIFMIS while the remaining two million Pounds will be used to support technical assistance for specialized consultancy services when necessary.
He stressed that the GIFMIS would help the country improve service delivery and the allocation of resources by using new tools and processes as well as ensuring best practices.
Mr Hawthron also announced UKaid’s intention to provide additional £1.863m to the Project and Financial Analysis unit of the Ministry of Finance and Economic Planning to ensure that value-for-money considerations were taken into account in major public investments.
The Project and Financial Analysis Unit was created in 2007, funded on a pilot basis by the UKaid, and has now been mandated to take on responsibility for policy on Public-Private partnership as well as reviewing proposals.
Dr Kwabena Duffuor, Minister of Finance and Economic Planning, who signed the agreement on Ghana’s behalf, said under the GIFMIS project, the government would publish standard annual financial reports and strengthen internal controls and auditing capabilities.
The GIFMIS, he said, would also enhance annual budget preparation, modernize revenue collection processes, empower local government units, modernize electronic data transmission, storage and disaster recovery systems, among others.