Ghana receives 26.4m Euro budget support from EU
The European Union (EU) in Ghana has disbursed a total of €26.4 million to the Government of Ghana for the year 2011, through Ghana's Multi-Donor Budget Support (MDBS) framework. This disbursement is in the context of the Millennium Development Goals Contract (MDG-Contract).
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 Government of Ghana in July 2009.
Under the financing agreement of the MDG-Contract, the EU is to provide a total of EUR 174 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.
In 2009, the MDG-Contract was reinforced by two complementary instruments (i.e. EUR 15 million Food Facility -disbursement in 2010 and EUR 35 million Vulnerability-Flexes disbursed in December 2009) which brought the total of the EU's current budget support programme in Ghana to EUR 224 million.
This 2011 disbursement follows the satisfactory conclusions of the 2010 Multi Donor Budget Support (MDBS) annual review, conducted last May, as well as the demonstrated commitment by the Government of Ghana towards attaining macro-economic stability, implementing the Ghana Shared Growth and Development Agenda (GSGDA) and in improving the country's public financial management.
General budget support is one of the three focal areas of cooperation between the European Union and Ghana. Contrary to a project approach, budget support involves the transfer of financial resources directly to the Government treasury to complement Government's own domestically generated revenues to and facilitate the implementation of the national budget and its associated public expenditure plans.
In the year 2010, the EU disbursed a total of EUR 41.8 million as budget support to the Government of Ghana.