2012 Budget Over-Expenditure: EC over-spent by 878%

Contrary to President Mahama’s directive in September 2012 to all Ministries, Departments and Agencies (MDAs) to stay within their revised budgets and not to over spend, information reaching the Scandal show that some seventeen (17) MDAs spent in excess of their 2012 budgets by a total of over GHc1.2 billion.

The biggest culprits in the over expenditure spree are the Electoral Commission (EC), the National Commission on Civic Education (NCCE), the Ministry of Youth and Sport, Ministry of Employment and Social Welfare and the Ministry of Chieftaincy and Culture.

According to our sources, the EC exceeded its revised budget of GHc20.5 million by about GHc180m to arrive at the final expenditure amount of GHc200.5m, representing 878 per cent over and above of its original and even revised budgets. The expenditure was for goods and services only.

On the other hand, the NCCE exceeded its budget by about 1014 per cent; from GHc316, 800.00 to GHc3, 527, 672.00 while the Ministry of Youth and Sports exceeded their own budget by about 410 per cent; from GHc46.1 million to GHc235.2 million. The Ministry of Employment and Social Welfare exceeded its budget by 325 per cent; from GHc16.1 million to GHc68.7 million.

In a Policy Statement presented at the Accra International Conference Centre on Tuesday September 4, 2012, President Mahama promised that his government will ensure that the cycle of over-spending during election year become a thing of the past.

“We are determined to break the cycle of over-spending, especially in an election year. Strict instructions have already gone out to all sectors against any unbudgeted expenditures. No New projects are allowed to be undertaken without strict adherence to the discipline of the national budget”, the President thundered.

He said “in order to ensure that this directive is adhered to by all Ministries; the Ministers are required to give an account of their compliance with this directive”, adding that, he was going to convene a Cabinet meeting to receive briefings from each sector on the directive.

President Mahama then gave a strong warning to his appointees that they ignore his directive at their own peril as he had already held discussions with them on what is supposed to be achieved in each sector.

As it stands now, the over-expenditure of 2012 is the highest ever recorded in the nation’s history, and it came at a time that the government gave the strongest indication ever that over expenditure will not be tolerated. Indeed, even before President Mahama’s directive, his predecessor late President Mills had also given a similar directive in May of the same year.

The question then is, was the 2012 budget free for all? How can an institution exceed its budget by 1014 per cent? It may be excusable when the variance is between 5-10 per cent above the original estimate, but how do we explain a 1014 per cent variance? Who prepared the original budget and on what basis?

The institutions that have been named as culprits in this over-spending spree also give cause for worry. The EC, the NCCE, the Ministries of Youth and Sport, Employment and Social Welfare and Chieftaincy and Culture.

From our investigations, these variations were made possible through Central Government’s allocations from the contingency and reserve votes which are usually and strictly meant for emergencies. So then this was a planned over expenditure in an election year and also against the president’s directive.

Our source says the over expenditure of GHc1.23 billion which was committed during 2012 by the 17 MDAs affected the cash flow position of government and as a result, culminated to a liability of nearly GHc600 million.

Budget over-runs appears to be a regular feature in our Public Accounts, but the proportions it has now assumed give the impression that we are losing control and some people simply have the keys to the public purse and can go in any time they want.