Approval of GHS 2.4bn budget allocation to Finance Ministry suspended by Parliament
Parliament has suspended the approval of the Ministry of Finances’ GHS 2.4 billion budget.
The suspension, according to Minority is due to the Ministry’s inability to provide answers on the allocation of GHS 1 billion for resource mobilisation.
The Finance Ministry was allocated GHS 2.4 billion out of which GHS 1 billion has been earmarked for resource mobilisation.
Deputy Minority Leader James Klutse Avedzi who raised the concerns said the House cannot approve the allocation until satisfactory answers are provided as to what exactly that amount will be used 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 GHS 1 billion for resource mobilisation, we want details of that amount, we have not received it,” he said.
Also, Minority Leader Haruna Iddrisu backed the proposition of his Deputy insisting the allocation is meritless.
“Our attitude is for government to cut expenditure so we are not convinced. Why do you need GHS 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.
“So 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 GHS 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?” he quizzed.
But Deputy Finance Minister Abena Osei Asare explained that the allocation is crucial for the running of the Ministry.
According to her, the fund is needed to strengthen institutional capacity for economic management.
“As part of the breakdown, we showed that GHS 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 GHS 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.
