Parliament approves GH¢5b for statutory financial obligation
Parliament on Tuesday approved more than GH¢5 billion to meet government financial obligations for the 2011 financial year.
The Select Committee on Finance report indicated that a total amount of GH¢5,986,945,731.00 had been allocated to be expended on government financial obligations.
The report, which was presented by its Chairman, Mr James Klutse Avedzi stated that public debt as at the end of September 2010 stood at $11,247.7 million out of which external debt amounted to $ 5,998.3 million (representing 53.1 per cent of the total public debt stock) while domestic debt was pegged at $ 5,249.4 million (representing 46.9 per cent of the public debt stock).
He said as at 2009 the District Assembly Common Fund (DACF) arrears amounted to about GH¢80 million with GH¢24.2 million paid so far.
The outstanding debt of the DACF for 2010 is GH¢104 million.
He said the National Health Insurance Fund arrears as at the end of 2009 was GH¢136 million.
Mr Avedzi said the estimated government payment for the 2010 was GH¢480 million out of which an amount of GH¢401 million had been released.
Arrears for the Ghana Education Trust Fund stood atGH¢80 million in 2009 out of which GH¢20 million had been paid this year.
Mr Avedzi explained that the estimated transfer of capital to Ghana National Petroleum Company (GNPC) amounted to GH¢262,185,243 for 2011, based on the expected average production of 79,945 barrels of crude oil a day at an estimated price of $70 per barrel.
He said the GNPC had a development cost of about $3 million which was expected to be paid in five years.
Government he said had made provision of GH¢214,020,00.00 to cover payment of arrears relating to the implementation of the Single Spine Salary Structure (SSSS) and health workers pension arrears for period of 2006 to 2009.
“Government expects all eligible workers to be migrated to the SSSS by the end of the 2011 financial year,” he said.
Source: GNA
Interesting to see how the Oil revenue already being pegged with the country’s spendding for 2011 even though the revenue is not even been received yet. Why is that the budget wasn’t design in a way the country revenue from other resources will be pegg with as being done in the past..
That is why a lot has been said that the current government was waiting for the oil revenue to augment it expenses for 2011. It remains to be seen how the oil revenue will be save and invest for future generations.