“Budgets are not just about numbers. They are about the difference government can make in the lives of people."
(Neil Cole, Ministry of Finance, South Africa)

States that wish to promote their development and reduce levels of poverty must have a basic infrastructure consisting of an efficient public administration as well as an effective and transparent system of public finance. This allows political decisions to be implemented in a targeted way and helps improve the daily life of citizens.  

The project “Public Finance, Administrative Reform and Decentralisation” develops contributions to development policy dialogue, reviews tried and tested methods of development cooperation, refines them and deploys them in projects as pilot strategies.

Our results:
GIZ’s advisory services to the government of Ghana in tax policy and tax administration produced impressive results: between 2003 and 2005, revenues from direct taxation increased by 57 percent (22 percent after inflation). In the same period, revenues from corporation tax rose by 86 percent (44 percent after inflation). This positive development is largely explained by organisational changes and greater transparency in the way taxes are collected. Efficiency gains, staff training, a professional dialogue with customers as well as a growing acceptance of taxation have all led to a significant rise in the contributions made by the largest taxpayers – despite a fall in tax rates.