Parliament approves 909 billion cedis supplementary budget

Accra, Nov. 5, GNA - After two hours of an extended meeting of Parliament, characterized by a heated debate on aspects of the 909.2 billion cedis supplementary budget requested by the Minister of Finance, Mr Osafo Maafo, the House unanimously gave him the nod at exactly 15.58 hours on Wednesday.

By the approval, Parliament has given the Government the authority to spend an extra money 909.2 billion cedis for various purposes in the Ministries, Departments and Agencies (MDAs) during the remaining eight weeks for the year to end.


The Minister's supplementary estimates were submitted to the Finance Committee of Parliament for scrutiny and subsequent recommendation.


Despite the recommendation of the Finance Committee, the approval came only after arguments and counter arguments on the floor of the House regarding certain aspects of the budget, especially the contingency fund of 87.455 billion cedis and the allocation of two billion cedis to the Ministry of Parliamentary Affairs.


Mr Doe Ajaho, NDC MP for Avenor, started-off the debate by questioning the relevance of the contingency fund in a supplementary budget, saying that contingency suggested an unforeseen expenditure and supplementary budget in itself was to meet unforeseen expenses in the main budget for 2003.


He, however, congratulated the Minister of Finance for bringing the supplementary budget to Parliament for approval, adding: "In the past I have criticised this Government for spending more than Parliament approves without seeking the permission of Parliament for extra funds."


Mr John Mahama, MP for Bole Bamboi emphasised the concerns of his colleague over the contingency fund, saying that 87.455 billion cedis contingency fund in a budget of 909.2 billion cedis was excessive. He said he suspected that the Minister was asking for the amount to use for other things, adding that the Minister must justify the reason for fixing such an excessive amount as contingency fund in a supplementary budget.

Mr Mahama was of the view that contingency fund must be a certain percentage of the actual budget and in this case the percentage was way too high as compared to that of the actual 2003 budget.


He also questioned the justification for allocating three billion cedis for official travels in the Ministry of Finance and Economic Planning for the next seven weeks, saying that the amount was excessive.


Mr Mahama also alluded to the Minister's statement in the past regarding budget figures to the effect that budget figures were not actual, saying that the Minister must tell the House, which of the figures in the supplementary budget were actual and which ones were not.


Mr Norbert Awulley, MP for Builsa South, vehemently protested against the contingency fund saying, "according to the appendix table attached to the Finance Committee report the Minister is asking this august House to approve an amount of 32.494 billion cedis as contingency fund for investments when in fact what he can justify is only about nine billion cedis."


He said there was no justification in holding as much as 23 billion cedis plus as contingency fund for a sector that the Minister had allocated only nine billion cedis.


Mr Awulley also noted that out of seven billion cedis allocated for Parliamentary service, two billion cedis would go to the Ministry of Parliamentary Affairs (MPA), saying that was unfair in that the Ministry operated mainly in Parliament and it was in the interest of the Ministry for MPs to be properly housed.

"Parliament needs more than the seven billion cedis to complete work on the Job 600 for MPs to have offices and libraries for research," he said. "To take two billion out of the insufficient seven billion and give it to a wing of the Executive, which basically operate in Parliament is not fair."


The Minority Leader Alban Bagbin supported the point raised by Mr Awulley saying that there were plans to construct two extra building on the premises of Parliament House for very important purposes including committee rooms and libraries and the seven billion cedis was not sufficient for the purpose.


Mr Bagbin also noted that since the Minister's statement indicated that Government under-spent the budgetary allocation for 2003, why the need for a supplementary budget, adding that it appeared that the surpluses in the Minister's statement might have come as a result of over taxing the populace.


He also noted that the President's Special Initiative on Distant Learning, which is allocated 2.4 billion cedis, should have been under the Ministry of Education instead of under the Office of Government Machinery, adding that it was even not fair for certain matters to be treated as special initiative when in fact every executive initiative had the President's assent.


Mr Dan Abodakpi, MP for Keta, said since there was a specific Ministry for Trade, Industry and PSI, the Minister must explain the need for allocating an additional 2.4 billion for a PSI on Distant Learning under a separate sector.


"We also need to know from the Minister why an important production sector like agriculture has only 1.5 billion cedis whilst the MPA has two billion cedis," he said.

He also asked the Speaker to let the Minister explain the reason for the exclusion of the ministries of Tourism and Modernisation of the Capital City; Regional Integration and NEPAD and of Ports and Harbours from the supplementary budgetary allocations.


Mr Seidu Paakuna Adamu, NDC Bibiani/Anhwiaso/Bekwai, questioned the justification for the entire supplementary budget saying that the Minister told the House in his statement the previous day that the Government spent less than was allocated to it in the 2003 main budget so there was no need for the supplementary budget.


All the Minority MPs, who spoke, pointed out that the 879 million cedis for the Ministry of Works and Housing (MWH) was paltry and called on the Minister to beef it up to enable the MWH to undertake the several projects in the districts.


In response to the concerns raised, Mr Osafo Maafo said in every jurisdiction, contingency fund in a budget was indeed determined by the one preparing the budget based on what he foresaw as risks in the future.


Mr Osafo Maafo said the House had the power to approve or not but it must act on the advice of the Minister of Finance who saw and knew what the possible risks were, adding that there was no theory regarding what percentage of the entire budget the contingency fund should be.


Touching on the allocation of two billion cedis to the MPA from the total allocation of seven billion cedis to Parliament, the Minister said the House requested for between four billion cedis to five billion cedis and the Ministry was adding an extra two billion to cater for the MPA.

On the 1.5 billion cedis allocation to the Ministry of Food and Agriculture, the Minister explained that the MOFA had financial support from other sources, hence the meagre allocation for it.


Mr Albert Kan-Dapaah, Minister of Communications, argued that there was no law or theory, which said that the contingency fund should be a specific percentage of the main budget, as Mr Mahama sought to suggest. Mrs Grace Coleman, MP for Effiduase Asokore, said no budget was perfect as to exclude a contingency fund and, therefore, called on the opposing MPs to desist from their opposition and support the recommendations of the Finance Committee.


At exactly 15.58 hours the first Deputy Speaker, Mr Freddie Blay ignored several MPs, who had stood up seeking to comment on the matter, and asked that the vote be taken.