Development Partners have indicated approximately USD450m in support of the Government’s budget for 2010. This follows a joint annual review of Multi-Donor Budget Support between the Government and DPs of progress under the Growth and Poverty Reduction Strategy II. Since 2002, the Multi Donor Budget Support (MDBS) aid mechanism has contributed approximately $2 billion in support of the Government’s budget activities, with a yearly amount of approximately $300m. This amount increases available resources to the Government of Ghana to execute the national budget according to its own priorities. The main aim of MDBS is to support the implementation of Ghana’s medium-term development plan, currently the Ghana Growth and Poverty Reduction Strategy II (GPRS II). Over the years, the MDBS process has lowered transaction costs to the mobilization and management of aid for both Government and Development Partners (DPs), enhanced the predictability of aid flows and increased Government’s discretionary spending as well as flexibility in resource allocation and management. Adherence by the Government of Ghana to underlying principles are preconditions for the use of the MDBS instrument and include sound macroeconomic policies and management, commitment to the achievement of the objectives of the National Development Strategy and the Millennium Development Goals, sound budgeting and public financial management, continuing peace, respect for human rights, rule of law, adherence to democratic principles, the independence of the judiciary, good governance, accountability of the Government to the citizenry and integrity in public life, including the active fight against corruption. The annual review between Government of Ghana and the MDBS Development Partners (DPs) is made up of two main components: a holistic assessment on the progress in the implementation of the National Strategy and sound macroeconomic performance and a more in-depth evaluation of performance against specific targets. These targets are jointly agreed to by both the Government and DPs and laid out in the Progress Assessment Framework (PAF), which covers a number of different sectors ranging from public financial management and decentralisation to agriculture and social protection. During the 2009 Annual Review meetings this year, both the holistic assessment and that of the PAF concluded that there had been satisfactory overall progress. However, the MDBS review also highlighted areas in which substantial efforts are needed so that specific sector performance can be improved, particularly in energy, water and sanitation. MDBS DPs stressed the importance of Government actions in tackling the issue of the substantial arrears and on moving forward with Parliamentary discussions on the reports of the Audits of the Consolidated Fund for 2006, 2007 and 2008 – a critical component of Government’s accountability over its budget and DPs’ accountability to their home constituencies. The MDBS group is made up of 11 development partners and is currently jointly chaired by Switzerland and the World Bank. The DPs contributing to budget support include: the African Development Bank, Canada, Denmark, European Commission, France, Germany, Japan, Netherlands, Switzerland, UK and the World Bank. For further information about MDBS please contact: Ms. Veronica Sackey, MDBS Secretariat, Ministry of Finance and Economic Planning mdbsgh@gmail.com Tel: (233) 21 660 672 Mr. Martin Saladin, MDBS co-chair, Embassy of Switzerland martin.saladin@eda.admin.ch Tel: (233) 21 225 008 / 248 226 Mr. Sébastien Dessus, MDBS co-chair, World Bank sdessus@worldbank.org Tel: (233) 21 214 122 www.mofep.gov.gh/mdbs