The Africa Education Watch (Eduwatch) has clarified that its Education Financing Tracker report (2017-2024) does not contain any mention or allegation of fund diversion.
Eduwatch elucidated that its report actually revealed that a portion of the GETFund Levy accruals was redirected to support other government priorities.
This realignment, Eduwatch noted, is consistent with the current regime of capping and reallocating funds to address various national needs.
“Our attention has been drawn to some media reports and commentary indicating that, according to the Eduwatch Education Financing Tracker (2017-2024) report, GHC 4.6 billion of GETFund Levy accruals have been diverted”.
Education Watch Africa
According to the Eduwatch report, GETFund has made significant contributions to education infrastructure development.
Eduwatch noted that, however, the implementation of the Earmarked Funds Capping and Realignment Act, 2017 (Act 947), has allowed the Ministry of Finance to redirect up to 60% of GETFund Levy accruals to other government priority areas.
“Between 2019 and 2022, out of GHC 9.8 billion GETFund Levy Accruals, only GHC 5.2 billion, representing 52 percent was released to the GETFund due to the capping”.
Education Watch Africa
To maintain the accuracy and integrity of public information, Eduwatch urges all relevant media houses to issue corrections and inform the public accordingly.
Furthermore, Eduwatch reminds media outlets to prioritize factual reporting and commentary, ensuring that their coverage remains truthful and reliable.
Eduwatch expressed its readiness to provide clarification and further insight into the report’s findings and recommendations, ensuring a comprehensive understanding of the issues addressed.
Ghana’s Education Financing, Progress And Decline
The Eduwatch report revealed that Ghana’s education sector has made significant strides in meeting international financing norms, with education’s share of national expenditure showing responsiveness to these standards.
However, the report also noted a decline in education’s share of expenditure between 2020 and 2022, a trend observed in the post-COVID-19 era.
“While the decline could be synonymous with the economic downturn, the national budget and expenditure trends showed no evidence of constriction, giving strong indications that, there are still opportunities for increasing public spending on education to the global upper benchmark of 6 percent of GDP, as Ghana continues to recover from the economic crisis”.
Education Watch Africa
Eduwatch noted that equitable spending remains a persistent challenge, with basic education consistently receiving less than the recommended 50% of the total education budget.
This disparity has been a recurring issue throughout the period under review, highlighting the need for a more balanced allocation of resources.
The education think tank revealed that, alarmingly, compensation costs devoured a staggering 70% of the education budget on average, leaving a relatively small share for other critical education expenditures.
Meanwhile, the remaining 30% was not allocated equitably, with secondary and tertiary education receiving more funding than basic education, which serves over three times as many beneficiaries.
According to Eduwatch, the effectiveness of increased education funding is contingent upon equitable expenditure, ensuring that resources are distributed fairly to drive holistic growth and improvement in the education sector.
Eduwatch uncovered a disturbing pattern of budget execution in the education sector, marked by a persistent mismatch between funding allocations and effective utilization of resources.
According to Eduwatch, despite exceeding the general budget amounts and non-discretionary budget allocations, such as compensation, the accumulative sense of budget execution remains high.
This suggests that while funds are being allocated and spent, the effectiveness and efficiency of this expenditure are questionable.
Eduwatch indicated that the fact that budget execution continues to surpass general budget amounts and non-discretionary allocations indicates a lack of prudent financial management.
It raises concerns about the prioritization of spending, with potentially non-essential expenses taking precedence over critical education initiatives.
Eduwatch also stated that despite increased funding, discretionary spending on goods and services fell short of budgeted amounts.
This is hindered by irregular and unpredictable releases of funds, a long-standing issue that undermines the reliability of discretionary budgeting, according to Eduwatch.
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