Annual Programme of Work 2005 - Ministry of Health

10. FINANCING THE SECTOR
In 1996, the Ministry adopted a resource based approach to planning and budgeting.
Under this approach the Ministry focused its efforts on improving the predictability of the
resource envelope required to implement the Programme of Work and ensuring equitable
resource allocation within the health sector. This approach to planning and budgeting has
been found to be too restrictive with managers in the health sector focusing more on how
to allocate resources rather than determining what would be required to achieve
objectives and targets. In view of this, the June 2004 health summit requested the
Ministry to incorporate a needs based budgeting system into the planning and budgeting
process.
In line with the above Summit decision, the Ministry experimented with the need based
budgeting for the first time during MTEF planning for 2005. The 2005 planning
guidelines requested BMCs to estimate what will be required operationally to scale up
priority health programmes. Concurrently, an estimate of the inputs and commodities
required to scale up interventions was conducted at the central level. As in previous
years, headquarters estimated the resource envelope and determined the resource gap by
comparing the total needs with the resource envelope. 2005 should however be viewed as
the year of learning.
Estimate of Resource Requirements
The resource requirements for the implementation of the 2005 Programme of Work, as
aggregated from the BMC plans and budgets, is ¢7.696 trillion (845.62 million USD).
The breakdown of the resource requirements by line items is shown in the table below.
Item Billion Cedis Million USD
Item1 (Personal Emoluments) 1,466.7 161.16
Item 2 (Administration) 1,201.6 132.03
Item 3 (Service) 3,971.7 436.4
Item 4 (Investments) 1,056 116.03
Total 7,696 845.62
The 2005 Resource Envelope
The resource envelope for 2005 is based on provisions made in the consolidated budget
statement and approved by Parliament, expected HIPC inflows and donor earmarked
funds. The provisions in the Consolidated Fund include inflows from the Government of
Ghana (GOG) regular budget, projected inflows from Internally Generated Funds (IGF)
and National Health Insurance Levy (NHIL), and donor inflows into the health fund,
loans and grants. Table below shows the resource envelope by source of funds.
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