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Sensitivity Analysisof the 2016 National
Budget
Policy Brief
by Prof. Godfred K. Bokpin
1. Introduction and the concept of
National Budget
he national Budget is an official Tdocument of a country which
states how the government plans to
raise revenue for its activities and how this
revenue will be allocated over a period of
time. It also reports on previous years'
performance and indicates uncompleted
projects to be carried forward into the
coming year. Any budget statement
therefore, should unequivocally spell out
the blue print of the nations upcoming
programmed activities.
The budget statement and economic policy
of the Government of Ghana for the 2016
financial year was presented to parliament thon Friday, 13 November 2015 by the
Minister of Finance Mr. Seth Terkper on the
authority of the President. This is in
accordance with Article 179 of the 1992
constitution. The Theme for the budget is
“consolidating progress towards a brighter
medium term”.
One major lookout in any budget statement
is special interventions and initiatives
directed towards youth development and
youth employment. Youth development is
essential because if the youth are not
they could turn out as the biggest threat to a
nation's security. However, due to the cross
sectional and multidimensional nature of
youth development programmes, it cannot be
s i tua ted wi th in only one Minis t ry,
Department or Agency. This seems to be the
main reason for the spread of youth
interventions and initiatives throughout the
2016 national budget with the lead ministry
being the Ministry of Youth and Sports. It
should be pointed out that of the total 29
Ministries, Commissions and Services cited
in the 2016 national budget, only 10 had
identifiable youth interventions mentioned.
development programmes, it cannot be
s i tua ted wi th in only one Minis t ry,
Department or Agency. This seems to be the
main reason for the spread of youth
interventions and initiatives throughout the
2016 national budget with the lead ministry
being the Ministry of Youth and Sports. It
should be pointed out that of the total 29
Ministries, Commissions and Services cited
in the 2016 national budget, only 10 had
identifiable youth interventions mentioned.
Also, a five year trend analysis by the Youth
Bridge Foundation in Ghana between the
period 2011 and 2015 indicated that a paltry
0.65% of the national budget was allocated to
the Ministry of Youth and Sports with a
chunk (70%) directed to sports (Ayee, 2016).
www.youthbridgefounda�on.orgYouthBridgeFounda�on@YouthBridge2+233 209016886
YBF/PB-072016/002
This is a quarterly publication of Youth Bridge Foundation, an
independent youth-focused think tank.
For subscription, address all correspondence to:
The Administrator, Youth Bridge Foundation,
P.O. Box CT 5543 Cantonments, Accra Ghana
Tel.: +233 209016886Email:�hq@youthbridgefoundation.org
Author: Professor Godfred A. Bokpin, BSc. Admin (Accounting), MPhil (Finance), PhD (Economics) Head, Department of Finance, Business School, University of Ghana
Youth
This edition is sponsored by the European Union.
2
YOUTH IN NATIONAL BUDGET POLICY BRIEF I
The remaining sections of this paper are organized into five
parts; 1. Summary of the 2015 budget on youth intervention
initiatives 2. An analysis of allocations for youth
development interventions in the 2016 national budget 3.
Appropriation bill of the various ministries that has youth
interventions 4. Conclusion 5.Trend analysis of allocations
to the Ministry of Youth and Sports 6.Summary of cost
centers and budget holders of youth development in the 2016
budget (MDAs).
2. Summary of 2015 national budget on youth
development interventions th
he 2015 national budget was presented on the 19
Tof November, 2014. Just like the current 2016
budget and other budgets presented in the past,
youth development initiatives are scattered throughout the
various ministries as identified in the budget.
The policy in favour of the youth development under the
Ministry of Youth and Sports is that; the “Ministry finalized
an Action Plan of the National Youth Policy which provides a
framework for the implementation of its priority areas for the
d e v e l o p m e n t a n d p r o g r e s s o f t h e y o u t h ” .
The Ministry also had the intention of organizing regional
dialogues for the youth and a national presidential youth
dialogue to encourage youth participation in decision
making. The Ministry of Local Government and Rural
Development had plans of training 3,000 youth in vocational
and technical skills. This is to equip the youth for future
employment and entrepreneurial roles. Another key
ministry that had plans for the youth is the Ministry of
Employment and Labour Relations. This ministry planned to
strengthen and revamp the Graduate Business Support
Scheme in order to provide entrepreneurial skills to 4,000
unemployed graduates. In addition, a total of 47,809 persons
are expected to be trained in the Ministry's vocational and
technical employable skills training programme. It is clear
that there was an overlap and duplication of functions
between the Ministry of Local Government and Rural
Development and the Ministry of Employment and Labour
relations on their intended vocational and technical skills
training programme.
3. Analysis of allocations for youth development interventions in the 2016 national budget
MINISTRY OF YOUTH AND SPORTS
he Ministry of Youth and Sports as the name
Tindicates is the lead Ministry for youth
development in Ghana. The essence of this
Ministry is to create an enabling environment for effective
youth and sports development and promotion through
policy formulation, implementation, coordination,
monitoring and evaluation. Since youth development cuts
across the various Ministries, Departments and Agencies,
it is just prudent for the Youth Ministry to coordinate and
liaise with these various bodies for effective delivery of its
core mandate.
Youth Development Programme
As per the 2016 national budget, there are only two
statements pertaining to youth development in Ghana
under the Ministry of Youth and Sports. The first
statement asserts that the Ministry has begun the
implementation of the National Youth Policy and Action
Plan and in 2016; the Ministry will carry out
dissemination on the policy and action plan to all relevant
stakeholders. The essence per the budget is to provide a
framework for systematic implementation of programmes
and activities.
www.youthbridgefounda�on.org
Skill Development
3www.youthbridgefounda�on.org
The second statement made in the 2016 budget in favour of
youth development is that, through the National Youth
Authority, the eleven Youth Leadership and Skills Training
Institutes will be renovated and 2,250 youth will be trained in
Leadership, Vocational and Technical Skills. Reporting on past
performance just for the sake of comparison, the ministry
indicated that the National Youth Authority has trained 1,646
youth in the eleven Youth Leadership and Skills Training
Institutes, out of which 200 youth will be writing the Technical
Vocational Education Training (TVET) Certificate
examination.
MINISTRY OF LOCAL GOVERNMENT AND RURAL
DEVELOPMENT
Local Level Development and Management Programme
The Department of Community Development under the
Ministry of Local Government and Rural Development has
plans of training 1,240 youth in technical and vocational
education. They also intend training 400 Technical Instructors
on Technical Vocational Education and Training (TVET)
reforms, upgrade Rural Development College (RDC) at Kwaso
in Ashanti Region to run programmes leading to the award of
BSc. Community Development and Social Protection and
revise the curricula of Community Development Vocational
and Technical Institutes (CDVTIs) to include Child and Family
Welfare for Child Protection at all levels. This policy if
implemented is laudable since it will provide the youth with
both employable and entrepreneurial skills.
MINISTRY OF FOOD AND AGRICULTURE
Food Security and Emergency Preparedness Programme
Government through the Ministry of Food and Agriculture per
the 2016 budget will establish Green House capacity building
and training centres in the country. The Green House capacity
building and training centres will be centres of excellence for
training farmers, youth, women and agricultural graduates in
commercial, modern greenhouse vegetable production. This
policy initiative though has plans for the youth, is vague and
lacks specifics.
Youth in Cocoa farming
Ghana being a predominantly agrarian economy and
government in its efforts to encourage the youth in
agriculture had a policy through COCOBOD initiative to
attract the youth into cocoa farming. So far a total of over
30,000 youth have been identified and supported to undertake
cocoa farming as a business. It is hopeful that this initiative
will continue in the foreseeable future.
MINISTRY OF TRADE AND INDUSTRY
Business Development and Promotion Programme
The only identifiable programme for the youth in the 2016
national budget, under the auspices of the Ministry of Trade
and Industry is that, Gratis Foundation will design, develop
and market a wide range of agro-processing plants for shea
butter; oil palm; groundnut; cassava; and a cocoa pod
breaker. GRATIS Foundation has as its mandate of providing
training in various engineering and processing fields to the
Ghanaian youth. Reporting on previous years' performance,
Gratis Foundation has trained 114 vulnerable persons in
various food processing and other income generating
activities, 23 in mechanical craft practice, 122 master
craftsmen in engineering, 157 in welding and fabrication and
40 in metal machining. Various agro-processing equipment
and spare parts for both local and West African markets to
support the activities of SMEs were manufactured.
M I N I S T RY O F TO U R I S M , C U LT U R E A N D
CREATIVE ARTS
Tourism Quality Assurance Programme
The Ghana Tourism Authority in 2016, will step-up
supervision, inspection and licensing of over 5,000 tourism
enterprises as well as develop standards for new tourism
enterprises including conference centres, SPAs, parks, health
farms, off-shore catering establishments, tour guides and
tourist attractions. Other interventions will include the
training of hospitality service providers and school leavers to
service the industry.
YOUTH IN NATIONAL BUDGET POLICY BRIEF I
Also, in 2016, the Ministry of Tourism, Culture and
Creative Arts will organise cultural exchange
programmes for entrepreneurs; creative artistes overseas;
National Festival of Arts and Culture (NAFAC); Regional
and National Drama Festivals for Schools and Colleges;
and KIDDAFEST International Youth Programme.
It stands out clear from the two paragraphs above that,
there isn't any clear youth development interventions on
the part of the Ministry of Tourism, Culture and Creative
Arts though this looks like a Ministry that should have
good and better policy initiatives for the youth.
MINISTRY OF COMMUNICATIONS
ICT Capacity Development Programme
The Kofi Annan Centre of Excellence in ICT (KACE) in
2016 plans to train 3,000 participants; in areas of software,
security and networking and also organise sandwich
programmes for tertiary students, executives and
corporate entities.
The Ministry of Communications continued to promote
the celebration of “Girls-in-ICT” programme to provide
the platform for as many girls as possible to interact with
mentors within the ICT sector to generate interest of girls
in technology, computer science, new communication
media and engineering. In 2015, 907 girls from public
schools in Volta Region were brought together and trained
in the use of ICT tools and equipment. The programme
created the opportunity for the girls to interact with the
mentors and to work together with other girls from other
districts in the Volta Region. There was also an awareness
creation on Child Online Protection (COP). In 2016, 900
girls will be trained in ICT programmes as part of Girls in
ICT Celebration to be held in Tamale. This is a
commendable initiative since its loaded with a specific
target and highly attainable based on past performance.
This Ministry has also entered into a partnership
agreement with the Republic of Mauritius to invest over
USD200m in the ICT Park at the Tema Free Zone Enclave
which when completed will create several thousands of
jobs for the youth.
Film and Television Production Training Programme
Finally, under the Ministry of Communication, the National Film
and Television Training Institute (NAFTI) also trained 385
students in film and television production, media and creative arts.
In 2016, NAFTI will train 178 students in film and television
production, other media and creative arts.
MINISTRY OF EDUCATION
Management and Administration Programme
The Ministry of Education in an attempt to enable teachers and
students have equal access to quality educational resources
nationwide will increase the number of learners from 597 in 2015
to 925 in 2016. Also, 400,000 audio-visual lessons on Video
Compact Disc (VCDs) will be produced as supplementary
teaching and learning materials for Junior High and Senior High
Schools.
Secondary Education Programme
The Ministry, in 2016, through the council for technical and
vocational education and training (COTVET) will expand the
trainer of trainers programme to include chief apprentices to
facilitate capacity building of 400,000 apprentices in the non-
formal sector. In addition, the ministry in consultation with
relevant stakeholders will continue to rebrand Technical and
Vocational Education and Training (TVET) with a focus on the
review of subject combinations offered in secondary technical
schools and technical institutions to facilitate progression of
technical students into tertiary institutions.
Also, 4,300 students will be provided with scholarships for the
2015/16 academic year under the Secondary Education
Improvement Project (SEIP).
Tertiary Education Programme
Finally, the Ministry of Education in its agenda to improve the
linkage between education and industry will in 2016, place 75,000
students from various tertiary institutions on industrial attachment
to equip them with first-hand experience in industry. This is an
improvement over the 63, 421 students placed last year. All these
activities are in the right direction of equipping the youth with
adequate skills training and experience for the labour market.
4www.youthbridgefounda�on.org
YOUTH IN NATIONAL BUDGET POLICY BRIEF I
MINISTRY OF EMPLOYMENT AND LABOUR
RELATIONS
The Ministry of employment and labour relations has as its
mandate to coordinate employment policies, manage
labour relation interventions across sectors and promote
decent work for national development. It also ensures that
children are removed from hazardous work as well as
regulate the payment of pensions and youth employment
interventions in the country. This presupposes that this
Ministry plays an essential role in youth development and
employment.
Job Creation and Development Programme
The Ministry of Employment and Labour Relations will in
2016 strengthen the Graduate Entrepreneurial Business
Support Scheme (GEBSS) to create more job opportunities
for young graduate entrepreneurs to establish and grow
their businesses.
Skills Development Programme
In 2016, the Ministry will train 15,453 youth in technical
and vocational skills, organize testing and certification for
43,320 candidates in vocational skills, ICT and secretary-
ship to meet emerging trends. A total of 750 persons will be
trained in management development skills to enhance their
productivity. This policy initiative is mainly to addres
s the skills mismatch challenges to national development.
MINISTRY OF GENDER, CHILDREN AND SOCIAL
PROTECTION
Gender Equality and Equity Programme
The Ministry of Gender, Children and Social Protection
doesn't really have any clear-cut plans for youth
development in the 2016 fiscal year as per the 2016 national
budget. The only identifiable initiative is to review the
Ghana National Plan of Action (GHANAP) on the UN
Resolution 1325 on Women in Peace and Security and
sensitize stakeholders including traditional authorities,
women groups, youth, educational institutions, media etc.
on the pillars of GHANAP 1325.
5www.youthbridgefounda�on.org
MINISTRY OF THE INTERIOR
Crime Management Programme
The Ministry of Interior in conjunction with the Prisons service
under its crime management initiative will in 2016, undertake
measures to ensure safe custody of prisoners and acquire
agricultural machinery to revamp the agricultural projects of the
service. The service will continue to provide skills training and
formal education for convicted prisoners and juveniles in
custody and provide welfare needs of prisoners. This is too
vague a statement and lacks substance to be hopeful of.
OTHER INITIATIVES
Job Creation/ Youth Employment Initiative
It seems like the best and most favourable youth policy was
reserved for the latter part of the 2016, national budget. The
national budget has a category for other initiatives and under the
job creation/Youth employment initiative category, it was
mentioned that the National Employment Policy was launched
with focus on the employment of youth, women and the
vulnerable. Subsequently, the Youth Employment Act, 2015
(Act 887) was passed with dedicated funding sources. Under the
Community Improvement Programme, a total of 100,000 youth
will be engaged in six different areas, namely:
· Waste and Sanitation;
· Security Services;
· Community Teaching Assistant;
· Community Health Assistant;
· Youth in Afforestation; and
· Youth in Apparel.
Though it is not too clear how government intends going about
this programme, it seems to carry a lot of weight for youth
development and employment and highly commendable.
In addition to the above statements, the Youth Employment
Agency will collaborate with the National Vocational Training
Institute (NVTI) to organise certificated courses for JHS/SHS
graduates in carpentry, masonry, tile laying, aluminium
fabrication and hairdressing. The programme will also target
young girls and women, including ''Kayayes''. The graduates
will be provided with the requisite tools to enable them start their
own businesses. Additionally, the Agency is collaborating with
the Ghana Federation of the Disabled to engage 1,000 physically
challenged persons in gainful employment.
YOUTH IN NATIONAL BUDGET POLICY BRIEF I
www.youthbridgefounda�on.org 6
Again, it should be mentioned that this initiative of targeting the
vulnerable and marginalized is a very exciting initiative on the
part of government. This has long term effects of driving out
many youth and physically challenged persons from the streets
of Ghana whilst boosting economic activities in the country.
4. Appropriation Bill of Ministries (Summary of
Expenditure by programme and Cost center)
he total budgeted government expenditure for 2016 is
TGH¢46,445.7 million including provisions made for
clearance of arrears and outstanding commitments
and GH¢43,505.1 million excluding the outstanding figure.
The total approved budgeted expenditure for the Youth and
Sports Ministry for the 2016 financial year is GH¢22,318,088
and out of this amount, only GH¢7,472,131 representing
33.48% has been allocated to youth capacity development. The
proportion of total government expenditure allocation
designated for this Ministry is a paltry 0.05% which is far lesser
than the average 0.65% for the period 2011-2015 as indicated
earlier (Ayee, 2016).
The Ministry of Employment and Labour Relations has plans of
spending GH¢5,224,910 (16%) on vocational skills training
and testing for the youth. The Ministry's total approved
budgeted expenditure is GH¢31,831,566 which corresponds to
0.07% of total government expenditure.
The assigned amount to the Ministry of Food and
Agriculture is GH¢59,776,323 which represents 0.14% of
total budgeted government expenditure whilst that of the
Ministry of Education alone is GH¢4,862,412,944 (11.2%)
of which GH¢37,041,067 (0.76%) will be assigned to non-
formal education and GH¢700,223 (0.014%) is designated
for the Council for Technical and Vocational Education and
Training. These are the two main youth intervention
initiatives under the Education Ministry besides the
industrial attachment placement initiative.
Finally, government intends spending GH¢47.93 million
(0.11%) to create jobs under the Youth Employment
Authority modules and to train the youth in technical and
vocational skills. This is clearly spelt out in the 2016
Citizens budget.
The expenditure amounts intended for youth development
and employments are clearly and woefully inadequate
when a whopping 24.11% of total government expenditure
is designated for interest payments.
The expenditure amounts intended for youth development
and employments are clearly and woefully inadequate
when a whopping 24.11% of total government expenditure
is designated for interest payments.
5: Trend Analysis of expenditure on Youth and Sports Ministry
Table 1
Year Total Budgeted
Expenditure
(excluding arrears
and outstanding)
Expenditure to
Ministry of
Youth and
Sports
(excluding IGF)
Expenditure for
Youth
development
Allocation
to Ministry
of Youth
and Sports
(%)
Allocation for
Youth
Development
(%)
2016 GH¢43,505.1million
GH¢22,318,088
GH¢7,472,131
0.05%
33.48%
2015 GH¢39,860.7million
GH¢35,906,402
GH¢8,753,735
0.09%
24.38%
2014 GH¢31,749.5million
GH¢35,685,666
GH¢ 8,483,734
0.11%
23.77%
2013 GH¢28,474.1million
GH¢53,639,101
GH¢13,776,750
0.19%
25.68%
2012 GH¢18,983.2million
GH¢ 31,165,965
0.16%
2011 GH¢12,670.8million
GH¢ 28,480,986
GH¢5,804,007
0.22%
20.38%
Source: Budget Statements and Author’s calculation
YOUTH IN NATIONAL BUDGET POLICY BRIEF I
www.youthbridgefounda�on.org7
0.00
10.00
20.00
30.00
40.00
50.00
60.00
2011 2012 2013 2014 2015 2016
Alloca�ons to Ministry of
Youth and Sports
Alloca�ons for Youth
Development
Total Budgeted Government
Expenditure
Figure 1: Trend Analysis of Allocations to Youth development and Sports Ministry
The trend analysis in the chart indicates that, the total
budgeted government expenditure over the years from 2011 to
current year, 2016 has been on the increase. This is expected as
backed by public expenditure growth models; Wagner's
model, Peacock and Wiseman model and the Development
model by Musgrave and Rostow. These models simply
suggest that growth of public expenditure is related to the
pattern of economic growth and development in societies.
The total budgeted expenditure allocations made to the
Ministry of Youth and Sports however fluctuates over the
years. Whilst it is high in some years, it is low in some years.
For example, it increased between 2011 and 2013 and
decrease after 2013 through to 2016.
The allocations made by the Ministry of Youth and Sports
towards youth capacity development remains almost stagnant
over the years as depicted in the chart.
6. Summary and Conclusion
he highlight of youth intervention programmes in
Tthe 2015 national budget among the various
ministries was “training of the youth and
entrepreneurial capacity development”. This seems to run
through all the ministries. The 2016 national budget did not
really differ in policy initiative towards youth development
from the 2015 budget;
Table 2
It was also predominantly centered on training
programmes for the youth. Based on the allocations for
youth development in the 2016 national budget, it is
obvious and clear that youth development initiatives are
disjointed and need a coherent and coordinated effort
among the various ministries to come to fruition. There is an
overlap and duplication of functions between the Ministry
of Youth and Sports, Ministry of Employment and Labour
Relations, Ministry of Education and the Ministry of Local
Government and Rural Development on their technical and
vocational training programme for the youth.
Youth in “Galamsey” Mining
Youth Artisans
YOUTH IN NATIONAL BUDGET POLICY BRIEF I
Head Office:
14 Lily Street, East Legon, Accra
P. O. Box CT 5543 Cantonments, Accra-Ghana
+233-302-936326
+233-20-9016886
info@youthbridgefounda�on.org
www.youthbridgefounda�on.org
YouthBridgeFounda�on
@YouthBridge2
Northern Regional Office:
House # RC87, Upper Floor
Bolga Rd, Kanvili, Tamale
+233-37 209 7936
+233-57 624 5677 / 54 352 9526
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Western Regional Office:
Anibire Street # AN 03/05 South Agona Nkwanta
+233- 55 378 6952 / 50 208 2318 wr@youthbridgefounda�on.org
Zambia Chapter
Plot 1020 Cairo Road Northend
P. O. Box 30267 Lusaka,Zambia+260-112 2806
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COST CENTERS AND BUDGET HOLDERS
Cost Centre as defined by CIMA is a “location, person or Aitem of equipment (or group of these) in respect of which costs may be ascertained and related to cost units”. A cost
centre is a responsibility centre that is accountable for cost only.
A Budget Holder is a person with the responsibility for implementing a budget. Budget holders use the budget to guide the implementation, checking before spending that items are budgeted for and allocating expenditure to appropriate budget lines. The following are the cost centers and budget holders for youth development in the 2016 national budget (MDAs).
* The first budget holder is the National Youth Authority, specifically, the Youth Leadership and Skills Training Institutes and Youth Employment Agency. They represent the budget holders under the Ministry of Youth and Sports.
* The next cost centre is the Department of Community Development under the Ministry of Local Government and Rural Development.
* COCOBOD under the Ministry of Food and Agriculture * GRATIS Foundation under the Ministry of Trade and
Industry * Ghana Tourism Authority under the Ministry of Tourism,
Culture and Creative Arts. * The Kofi Annan Centre of Excellence in ICT (KACE) and the
National Film and Television Training Institute (NAFTI) under the Ministry of Communications
* Council for Technical and Vocational Education and Training (COTVET) under the Ministry of Education
* The Ministry of Employment and Labour Relations * The Ministry of Gender, Children and Social Protection * Ministry of Interior
1. Ayee, J. R.A. (2016). Youth Development in Ghana: The debate over the decoupling of the Ministry of Youth and S p o r t s . Yo u t h B r i d g e Foundation Policy Brief. 042016/001
2. The 2015 Budget Statement and Economic Policy of the Government of Ghana
3. The 2016 Budget Statement and Economic Policy of the Government of Ghana
4. The 2016 Citizens' Budget
REFERENCES
YOUTH IN NATIONAL BUDGET POLICY BRIEF I
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