THE IMPLEMENTATION OF THE COMPOSITE BUDGET SYSTEM IN GHANA - USING THREE LOCAL GOVERNMENTS

ABSTRACT 

Central governments recognize the key role played by local governments in the developmental agenda of these local areas, especially the effort at generating sufficient revenue locally to fund their own projects and programs. Local governance requires that stakeholders are involved in the planning and implementation of policies geared towards reducing and subsequently, eliminating poverty and improving upon the living standards of the residents. In lieu of the aforementioned, the study sought to examine the implementation of the composite budgeting system (CBS) using three selected assemblies in Ghana by adopting the Interactive Model by Thomas & Grindle (1990) & Integrated Model of Implementation by Winter (2003) theory of implementation which explains the factors that affect implementation of policies. The qualitative research approach was adopted with a sample size of 156 using both interviews and focus group discussions and Nvivo 11 software was employed in the data management. The study examines the achievements of the composite budgeting system, the resource challenges (financial and non-financial) of the CBS, the challenges posed by decentralized units in the implementation of the CBS in Ghana and the effect of external factors such as politicking in the successful implementation process. The study adopts an interpretive research paradigm which takes into consideration the personal views of the researcher based on what is experienced on the field. The study found out amongst others that the CBS has brought about efficiency in the various assemblies, there are different laws regulating the assemblies and thereby creating conflict between departments, and that the central government which sometimes delays the release of funds unnecessarily to the assemblies. The study recommends that the Ministry of Finance in collaboration with the Ministry of Local Government and Rural Development, should replace private commission collectors with permanent staff and that the regional coordinating directorates be resourced to execute their mandate as espoused in the Local Governance Act (ACT 936).