Govt transferred GHC3.1bn of Tier 2 pension’s funds into custodial accounts - Ofori-Atta

Government has transferred some GH¢3.1 billion of Tier 2 pension funds into the custodial accounts of the pension schemes of the labour unions, funds that had been outstanding since 2013, Finance Minister, Ken Ofori Atta, has said.

“With stronger finances, Government also transferred some GH¢3.1 billion of Tier 2 pension funds into the custodial accounts of the pension schemes of the labour unions, funds that had been outstanding since 2013. That is real change,” he told parliament during the presentation of the 2020 government budget statement on Wednesday November, 13.

He added that the government has “also established the National Entrepreneurship and Innovation Programme, under which 3,000 start-ups and small businesses have benefitted from a special government business support programme with beneficiaries receiving between GH¢10,000 and GH¢100,000 each, at a special interest rate of 10%. That is real change.”

Touching on the total public sector debt, he said the debt has increased from GHC122.3 billion in 2016 to GHC208.6 billion (including the cost of the banking sector clean-up) at the end of September 2019, Finance Minister, Ken Ofori-Atta, has said.

Presenting the government’s budget statement for the 2020 fiscal year on Wedbesday 13 November, 2019, he said : “The total public debt has increased from GHC122.3 billion in 2016 to GHC208.6 billion (including the cost of the banking sector clean-up) at the end of September 2019.

“However, the strong fiscal adjustment and better debt management has meant that the rate of debt accumulation (excluding the banking sector clean-up) of 14.3 percent, is the second lowest in the last decade. The debt to GDP ratio increased from 56.9 percent in 2016 to 57.5 percent at the end of September 2019, excluding the financial sector bailout. Including the financial sector bailout and energy payments, the debt to GDP ratio was 60.55 as at end September 2019.”