therein.

(c) Expenditure Control and Accountability  There is a need for an expenditure control

system that links all government expenditures recurrent and nonrecurring(as well as the

traditional Narrow Budget and Broad Budget items) to specific line items in the

Parliamentary approved Budget.

(d) Repayment of Debt  The government will examine the debt repayment schedules and its

internat ional borrowing when considering its fiscal plan.

(e) Divestiture of Public Enterprises  Budget should account for any proceeds from the

divestiture of Public Enterprises.

2. Monetary Management and Accountability

(a) Disclosure of  Targets for Monetary Aggregates  The Governor of the Bank of Ghana

informs the Nation of the targets which have been agreed for monetary aggregates, credit

to the public sector and foreign reserves.  The Bank of Ghana will consider eliminating

the use of the nominal exchange rate as an anchor for the economy.  The use of the

nominal interest rate must be recognized as a consequence of monetary policy and neither

a target nor an instrument . 

(b) Monetary Policy Instruments  The Bank of Ghana will agree to review Open Market

Operations with a view to streamlining the role of BOG Bills and Treasury Bills to make

the Open Market Operations more transparent, ex post, and unpredictable on an ex ante

basis.

(c) Relationship of Bank of Ghana to Treasury  The Government and the Bank of Ghana will

jointly review the process for and use of the following practices:  (a) ways and means

advances; (b)  revaluation account; (c) dividend payments and other extraordinary

transfers from the Bank of Ghana to the Treasury; and  (d) direct transfers from the Bank

of Ghana to parastatal enterprises.

(d) Debt repayment schedules The Government and the Bank of Ghana will jointly examine

the debt repayment schedules and internat ional borrowing when considering monetary and

exchange rate policy.

3. Revenue Generation and Broad Based Taxation

(a) Review of VAT Implementation for Purpose of Broadening its Coverage

(b) Direct vs. Indirect Taxation  The Government would review the taxing system to identify

taxes that are nondistorting and not so specific that groups can lobby for exoneration.

(c) Uniform and Lower Tariffs  The government will agree to study the revenue effects of

uniform and lower tariffs.

(d) Pricing of Publicly Provided Goods and Services  The Government will review import

parity pricing and/or full cost recovery for publicly provided goods and services (utilities,

petroleum products, t ransportation, buses, ship lines, Ghana Airways, etc.)  The

Government will review the use of concessions and tolls to promote investment in an

operation of improved public infrastructure (roads, ports, airports, sewage systems, public

utilities, etc.).

4. Trade Reform

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