The government of Ghana mobilized a total amount of GH¢101,473,232.60 from the COVID-19 National Trust and the COVID-19 Private Sector Funds. The total amount raised came from GH¢ 57,134,093.58 from the COVID-19 National Trust Fund and GH₵44,339,138.98 from the COVID-19 Private Sector Fund. The Finance Ministry revealed this in the 2021 Budget Statement.
The Funds represent two special initiatives to mobilize resources to fight the pandemic. The money raised from the two Funds were used to undertake different activities in the country’s quest to limit the spread of the disease.
COVID-19 National Trust Fund
In April 2020, the government passed the COVID-19 National Trust Fund Act, (2020), Act 1013. This ACT established the COVID-19 National Trust Fund. The aim is to leverage other resources to fight the pandemic, as the government overstretched its fiscal space. The Fund has since mobilized some amount of money that aided the fight against the pandemic.
Luckily, the government provided a breakdown of the current state of the Fund in the 2021 Budget Statement as a way of demonstrating accountability to its citizens. The finance ministry revealed in the 2021 Budget Statement that as at 31st December, 2020, the Fund had mobilized GH¢ 57,134,093.58. It noted that the government had utilized a total of GH¢45,218,313.23 last year. This shows that government expended 79 percent of the money raised from this FUND in 2020. Therefore, it presupposes that the government started 2021 with an amount of GH¢11,915,780.35 in the COVID-19 National Trust Fund.
Meanwhile, these resources, according to the Finance Ministry, complemented Government efforts in providing PPEs and medical supplies to COVID-19 selected institutions. The Funds were also used to distribute food items to the aged, vulnerable, and needy persons. The government also used part of the money raised to provide vehicles to selected Treatment Centres. Also, it funded the National Public Health & Reference Laboratories, and Testing Centres. Furthermore, the government also utilized the funds to support COVID-19 Central Care Management Team and the construction of the National Infectious Disease Centre.
The COVID-19 Private Sector Fund
The private sector played a significant role in the fight against the pandemic in the country. Despite the devastating effect of the pandemic on Ghanaian businesses, the sector provided resources to support the government’s efforts.
The Private Sector swiftly organized and complemented Government’s effort towards fighting the pandemic. Figures from the Finance Ministry shows that as of December, 2020, the Fund had mobilized GH₵44,339,138.98. Out of this amount, the government invested GH¢40,203,404.70 in various activities. Prominent amongst them was the construction of a 100-bed National Infectious Disease Centre in Accra. Therefore, it can be inferred that the Fund begun this year with a total amount of GH₵4,135,734.28. This means the government utilized approximately 91 percent of resources it had mobilized from the Fund.
COVID-19 Support in 2020
As part of measures to mitigate the impact of the pandemic on businesses and households, the government rolled out several programs in 2020. Some of them include free water supply, free electricity supply, and the provision of food to vulnerable persons.
The government launched a GH¢750 million Coronavirus Alleviation Program – Business Support Scheme (CAP-BuSS) to support MSMEs. The government said it had spent about GH¢412.88 million as at End-December 2020 to support 277,511 businesses. About 69% of which were female-owned. The Finance Ministry revealed that scheme has saved over 650,000 MSME jobs. The government continues to implement programs to revitalize the economy. One of such programs is the GH₵ 100 billion Ghana CARES program.
Meanwhile, the government is still on the search for more resources to address the challenges inflicted by the pandemic on the Ghanaian economy. As a result, the government has proposed taxes such as the COVID-19 Health Levy, and the Sanitation and Pollution Levy (SPL). Others include the financial sector clean-up levy of 5% on profit-before-tax of banks and an increment in Road Tolls.
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