2.5% of national tax revenue to fund political parties

… but Christian Council shows disapproval
Two and half per cent (2.5%) of total national tax revenue is being proposed as the source of public funding for political parties in Ghana, the Financial Intelligence has gathered.

This is contained in the draft proposal presented by the Institute of Economic Affairs (I.E.A) to stake-holders recently over the proposed state funding of political parties.


At page eight of the ‘Draft Public Funding of Political Parties Bill, 2008’, the policy think–tank proposes that“an amount equivalent to two and half per cent of the total tax revenue of Ghana, or such a percentage as parliament may decide” should be channeled into the funding of political parties in Ghana.


The draft also made provision for, “other moneys appropriated to the fund”, mentioning grants, gifts, devises and other voluntary contributions to the fund from any sources whether originating within or outside the Republic, whether foreigners or Ghanaians.


But a highly placed source within the Christian Council of Ghana told the Financial Intelligence the Council is not in support of the proposal.


“We think this figure is colossal and the document is not even clear on whether it is from V.A.T or the total tax the country generates in a given year that they have proposed”, said the source, adding that, “We have therefore proposed to them to state clearly which of the taxes they are proposing”.


The source further disclosed that at a recent meeting between the Christian Council of Ghana and the Catholic Bishops Conference, both institutions declared their opposition to the usage of such a colossal amount of money for funding political parties. The council also believed that the time was not ripe for such a venture, and that the proposal was premature.

However, according to the source, “the two institutions say their hands are tied because if all the beneficiaries (political parties) agree to the idea, and such an amount, nothing can stop them from approving of it when it comes to parliament for consideration”.


“We have therefore requested I.E.A to review the figure and to state clearly which taxes should be used in this exercise”, the source disclosed.


The official explained that the reason the two Clergy associations believed the figure is too much is that well wishers would continue to support parties and so state funding should come as supplementary.


They also suggested that before any such step is taken, the parties must be accountable to the people by providing their audited accounts for relevant institutions for verification.


The churches also propose that if the state insists on funding parties, then the management structure should be such that accountability and integrity would be the hallmark of its disbursement.


Deputy Minister for Communication Gideon Quarcqoe commented that before this should be done, feasibility studies must be carried out to see how feasible it would be.

Hon Quarcqoe said there are many things Ghana can do to deepen the democratization process she has embarked upon, but there is the need for political will on the part of all Ghanaians to see those initiatives succeed.


The Deputy Minister who spoke to this paper shortly after launching the Christian Council of Ghana’s 2008 Election Observation Report noted that the proposal to introduce electronic voting system in Ghana is laudable and must be supported by all.


He however called for a preliminary test to be done on the proposal to see how feasible and sustainable it would be.


Mrs. Jean Mensah, Administrator of the IEA, was not at post when this paper tried to hear her comment on the Christian Council’s position, however National Chairman of the People’s National Convention (PNC) Ahmed Ramadan agreed with the churches’ position as per the quantum of money being proposed and asked that it be scaled down to levels that would be acceptable to Ghanaians.


Alhaji Ramadan however contended that before the public demand accountability from parties, they must first of all begin to fund them.