Govt to spend GH¢10.99bn first quarter 2017
Parliament yesterday approved GH¢10.99 billion to finance critical government expenditure in the first quarter of 2017.
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The provision is to cater for estimates of the first quarter expenditure on essential and other statutory payments.
The expenditure categories cover compensation of employees, goods and services, capital expenditure, interest payment, grants to other government units, non-road arrears, tax refunds and amortisation.
The approval followed a request by the Minister of Finance, Mr Seth Terkper, to Parliament to approve an expenditure in advance of appropriation from January to March, 2017.
The Speaker of Parliament, Mr Edward Doe Adjaho, referred the request to the Finance Committee for consideration and report. After its deliberation, the committee recommended to the House to approve the GH¢10.99 billion.
By the approval, the government is authorised to withdraw money from the Consolidated Fund and other public funds to meet its urgent and statutory expenses for the first quarter of 2017 pending the approval of an Appropriation Act for the 2017 financial year.
The request by the Minister of Finance was in line with Article 180 of the 1992 Constitution, which states: "Where it appears to the President that the Appropriation Act in respect of any financial year will not come into operation by the beginning of the financial year, he may, with the prior approval of Parliament by a resolution, authorise the withdrawal of money from the Consolidated Fund for the purpose of meeting expenditure necessary to carry on the services of the government in respect of the period expiring three months from the beginning of the financial year or on the coming into operation of the Act, whichever is earlier."
Finance Committee
Presenting the report of the Finance Committee, the committee's Chairman, Mr James Avedzi, said the request was as a result of the non-passage of the Appropriation Act for the 2017 Budget Statement and Economic Policy, and the forthcoming 2016 presidential and parliamentary elections.
He said the Ministry of Finance projected to collect a total revenue of GH¢8.9 billion for the first quarter of 2017, and indicated that the funds would come from both tax and non-tax revenue sources.
Mr Avedzi said the deficit would be financed through both domestic borrowing and external financing, including project and programme loans.
Minority raised issue
The Minority in Parliament raised concerns about the rising debt, high interest payment and silence on job creation.
The MP for Bosomtwe, Mr Simon Osei-Mensah, wondered why interest payment was more than capital expenditure.
Besides, he said, there were imbalances in the expenditure.
"We should have a second look at the rate of borrowing because it is retarding the rate of growth of the country," he said.
The MP for New Juaben South, Dr Mark Assibey-Yeboah, expressed concern about the rising debt levels.
He indicated that of the about GH¢10.99 billion request, 29 per cent would go into interest payment.
Majority
The Majority Leader, Mr Alban Bagbin,said the request was necessitated by the fact that every government should have money for expenditure in the first quarter.
He said the idea was not to burden the government, and that it was in compliance with the Constitution.
Finance Minister
Mr Terkper said the government’s debt went up because it had borrowed to refinance the 2007 bond of $750 million.
He said the country was witnessing a declining debt ratio against the background of a sluggish growth.