Parliament Suspends Approval Of Finance Ministry's ¢2bn Budget

Parliament approves ¢2.074 billion budget estimate for Local Gov’t Ministry
The 2 billion budget allocation for the Ministry of Finance has been suspended by Parliament.

Minority claims that the suspension is the result of the Ministry’s unwillingness to respond to questions on the allocation of $1 billion for resource mobilization.

The Finance Ministry received a budget of 2.4 billion, of which 1 billion is designated for resource mobilization.

James Klutse Avedzi, the deputy minority leader who raised the issues, stated that the House cannot accept the allocation unless sufficient explanations are given as to what precisely that sum would be utilized for.

“I asked for details for this allocation, but up to now, I have not received the details so we cannot put the question. There is an allocation for ¢1 billion for resource mobilisation, we want details of that amount, we have not received it,” he said.

Additionally, Minority Leader Haruna Iddrisu supported his deputy’s argument that the distribution is unfair.

“Our attitude is for government to cut expenditure so we are not convinced. Why do you need GH₵1 billion to mobilise resources? As far as we know we know, resource mobilsation is the collection of taxes in a manner which is effective and efficient.

Mr Haruna also mentioned that, “if the Ministry of Finance does not give a convincing explanation, we think that this is part of what they should be cutting from the budget to save the country this GH₵1 billion. What do you need 1 billion for in the name of resource mobilisation? Isn’t it GRA which should be mobilising resources by collecting taxes? Why are you giving this money to the Ministry of Finance? To do what?”

However, Abena Osei Asare, the deputy minister of finance, said that the allocation is essential for the Ministry’s operation.

According to her, the fund is needed to strengthen institutional capacity for economic management.

“As part of the breakdown, we showed that GH₵5.2 million of this is going to be used for the strengthening institutional capacity for economic management. We also mentioned that, the Financial Sector Development project where we are going to maintain and operate the core banking system is also part of this allocation. That is GH₵ 79 million.

“The Ghana Development Finance project which is under the development bank operationalisation will also take about GH₵110 million. The GIFMIS ICT infrastructure system will also be upgraded and it also take a take portion,” she said.