The 2022 Public Interest and Accountability Committee (PIAC) Annual Report has revealed that for two consecutive years, the Finance Ministry has not been able to meet the requirement to transfer 5.0% of the Annual Budget Funding Amount (ABFA) to the District Assembly Common Fund (DACF), contrary to the decision of the Supreme Court of Ghana in the case of Kpodo and Another vs Attorney-General in 2019.
The Committee in its report is therefore urging the Finance Minister, Ken Ofori-Atta, to adhere to the decision of the Supreme Court in the disbursement of funds to the DACF.
“In the disbursement of funds to the DACF, the Minister for Finance should comply with the decision of the Supreme Court of Ghana in the case of Kpodo and Another vs Attorney-General in 2019.”
The 2022 Public Interest and Accountability Committee (PIAC)
The Report also expressed worry and concern about the little disbursement of the ABFA to the Industrialization Priority Area, noting that: “The Industrialization Priority Area received an amount of about GH¢9.29 million, representing 0.20% of the total ABFA of ¢4.41 billion.”
“The disbursement which represents 4.29% of the amount budgeted (¢216.3 million) for the priority area for 2022 does not reflect giving priority to Industrialization in the use of ABFA.”
The 2022 Public Interest and Accountability Committee (PIAC)
The report further noted that an amount of Gh¢643.61 million ($73.68 million) was transferred to the Ghana Infrastructure Investment Fund (GIIF) in 2022.
According to the Fund, the entire disbursement was used to support the Agenda 111 Project of the government.
This is the second year after 2021 that GIIF has received funds for the Agenda 111 Project. In 2021 an amount of ¢290.38 million (US$49.39 million) was allocated to the Fund.
Finance Minister Reiterates Government’s Commitment To Protecting Public Purse
Meanwhile, the Finance Minister, Mr. Ken Ofori-Atta, has assured citizens of government’s plans and commitment in ensuring that the nation’s purse is secured, managed and protected through expenditure controls and the payment of the right taxes.
The Economic Hurdles, according to the finance minister, has taught government great lessons and therefore plans to spend what the country earns in a wise manner – to ensure that expenditure does not exceed revenue.
Commenting on fiscal policies and measures adopted by government in the management of the county, Mr. Ofori Atta noted that, government – working in the best interest of the nation, has ensured that its spending and tax policies used in influencing the economic condition yield the best result in the long run.
He added that the country must contend with expenditure control commitments, raise its revenue and ensure that it spends what it earns.
“I think those are going to be the issues the country has to contend with, understanding how to protect the public purse and ensuring that we all pay our taxes and avoid wasting government resources.”
Mr. Ken Ofori-Attah
