The government of Ghana utilized 76.4% of the programmed amount to tackle COVID-19 in 2020 and 2021.
According to Finance Minister, Ken Ofori-Atta,the programmed COVID-19 related expenditure for the two years amounted to GH¢15,763.48 million out of which the actual utilization was Gh¢12,036.41 million.
Speaking on the floor of Parliament on Wednesday, June 22, 2022, Ken Ofori-Atta said in 2020, a total amount of GH¢11,162 million (this includes the CAP) was programmed for COVID-19 related expenditure. He noted that out of this amount, a total of Gh¢8,122 million was utilized.
“The amount was utilized to provide support to households; supply Equipment and provide relief to health workers (Health Response); Health Infrastructure; Security Operations, Evacuations, Quarantine and Coordination; Economic Relief; Stabilization and Revitalization; and Covid-19 Complementary Releases”.
Ken Ofori-Atta
Mr. Ofori-Atta further disclosed that a total amount of GH¢4,601 million was programmed in the 2021 budget for COVID-19 related expenses. However, he indicated that at the end of December 2021, the total utilization was GH¢3,914.40 million, representing 85 percent utilization of the programmed amount for the year.
The minister took the platform to clarify that there have never been any inconsistencies in data put out by the government on the exact amount spent to fight the virus.
“At this juncture, I wish to dispel the notion that there have been inconsistencies in Government data on COVID-19. His Excellency the President intimated during that State of the Nation Address on 30th March, 2022, that we had mobilized about Gh¢17.7 billion since 2020 to fight the pandemic.
“We have subsequently reconciled the data and I can report that as of End-May, 2022, we have mobilized Gh¢18.19 billion to mitigate the effect of the pandemic. Again, when His Excellency the Vice President indicated on 7th April, 2022 at the National TESCON Conference that Government had spent Gh¢8.1 billion on Covid-19, it was within the context of expenditures for 2020 as I have already indicated”.
Ken Ofori-Atta
Financial Management Framework for COVID-19
The Finance Minister also used the occasion to highlight the financial management and accountability framework for receipt and use of public funds – especially as relates to COVID-19.
According to him, all public expenditures are incurred from funds approved by Parliament. These expenditures may be drawn from the Consolidated Fund, Contingency Fund or other Statutory Funds earmarked for specific purposes, he said.
He indicated that at the onset of the COVID-19, the Ministry of Finance applied for and obtained the approval of Parliament to lower the Cap on the Stabilization Fund. This enabled the transfer of approximately GHc1.20 billion to the Contingency Fund.
He disclosed that upon approval by Parliament, GH¢1.20 billion was drawn from the Contingency Fund to support Government efforts to mitigate the effect of the pandemic.
In the 2020 Mid-Year Fiscal Policy Review, Mr. Ofori-Atta noted that revisions were made to the 2020 Budget to reflect policy changes as well as Executive decisions made to mitigate the effect of the pandemic.
Support to Households
Mr. Ofori-Atta disclosed that the total amount programmed for the initiatives under the Support to households in 2020 was GH¢1,718 million, out of which the amount utilized was GH¢1,550 million.
Giving details on the government’s support to households, Mr. Ofori-Atta said a total amount of GH¢12.1million was utilized for the distribution of the packed hot food in Accra, Tema, Kasoa and Greater Kumasi. This included the cost of transportation of packed food in some suburbs of Greater Kumasi by NADMO.
“The expenditure for the provision of Hot Meals during the lockdown served about 2,744,723 persons for the period of the lockdown at a unit cost of GH¢4.32. A total amount of GH¢42.24 million was expended on distribution of Dry Food packages through Faith Based Organizations in Greater Accra and Kumasi. A total of about 470,000 persons received these food packages”.
Ken Ofori-Atta
As part of the support to households, Government through the Ministry of Water and Sanitation and its agency, Ghana Water Company Limited, provided free water which initially lasted for the period April to September 2020.
Following an executive directive, this was extended to December 2020 for lifeline consumers. The distribution was also carried out by the Community Water and Sanitation Agency and other Small Holder Water Supply Organizations (NGOs).
“An amount of GH¢556 million was budgeted in 2020 for this program out of which COVID-19 GH¢456 million was utilized. In 2021, a total allocation of GH¢200 million was made for the provision of free water and electricity for lifeline consumers, out of which GH¢143 million was utilized”.
Ken Ofori-Atta
Mr. Ofori-Atta also noted that Government made provision in the Budget for free electricity to lifeline consumers and absorbed 50% of all electricity bills for all residential and commercial customers. This, he said, costs the government GH¢1,039 million from April to September 2020.
The Minister further told the House that the total amount programmed for the measures under the health response in 2020 was GH¢1,522 million, out of which an amount of GH¢1,049 million was utilized.
