Switzerland provides decentralized budget support to the Government of Ghana

Switzerland and Ghana signed an agreement on the provision of decentralized budget support for 18 million US Dollars for the years 2019 to 2021. All 260 districts will benefit from performance-based grants to strengthen public financial management and invest in basic social and economic infrastructure.

The Swiss Ambassador Philipp Stalder, the Minister of Finance, Ken Ofori Atta and the Minister of Local Government and Rural Development, Hajia Alimah Mahama

On October 30, the Swiss Ambassador Philipp Stalder, the Minister of Finance, Hon. Ken Ofori Atta and the Minister of Local Government and Rural Development, Hon. Hajia Alimah Mahama (MP) signed an agreement on a new decentralized budget support operation for 18 million US Dollars (equivalent to 100 million Ghana Cedis) for the years 2019 to 2021. The operation will support Ghana’s ongoing public financial management and decentralization reforms. It is part of Switzerland’s economic development cooperation program with Ghana.

In his remarks, Ambassador Stalder, called the new decentralized budget support a testimony of Switzerland’s strong commitment to the partnership between Ghana and Switzerland. He highlighted that “decentralization is a powerful instrument for development” and stressed that the support is expected to “bring governance closer to the needs of the citizens and ultimately contribute to local economic development and the reduction of disparities”.

Switzerland’s decentralized budget support will be channelled through the District Assemblies Common Fund Responsiveness Factor Grant (which replaced the District Development Facility). The operation will provide performance linked grants to all 260 districts in Ghana to help them improve their public financial management practices and finance much needed basic social and economic infrastructure.

Switzerland has been providing decentralized budget support through the District Development Facility since 2013. Over this period, more than 6’480 small-scale infrastructure projects ranging from basic school blocks, markets, health, and water and sanitation projects were financed which contribute to local economic development and the reduction of disparities.

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