Parliament House of Ghana
Members of Parliament have expressed concern over delays in the roll out of a formula for disbursement of statutory funds, a situation that is hampering the work and operations of Metropolitan, Municipal and District Assemblies (MMDAs) across the country.
According to a member of Parliament’s Finance Committee, Benjamin Kpodo, two months down the line after the approval of the budget, the formula has not been brought to the House for consideration.
Government, in its 2017 budget and economic policy approved by Parliament, seeks to cap all statutory funds at 25%.
In 2016, transfers into the statutory funds constituted 33.5 per cent of national revenue, up from 28.2 per cent in 2015.
Statutory payments into the National Health Insurance Fund (NHIF), Ghana Education Trust Fund(GETFUND), the District Assemblies Common Fund (DACF), Road Fund, and the Energy Fund, are yet to be made.
Government institutions such as schools and hospitals are unable to embark on developmental activities and other social obligations as a result.
If government releases statutory payments on time, these institutions can pay their debtors as well as complete all unfinished projects across the country, the legislators said.
“The concern is that during the whole budget period up till date, we have not received the formula for distributing statutory funds. So, the constitutional provision is that these various bodies; the GETFUND, NHIA and DACF will lay before Parliament the formula for distributing the appropriation of the amount approved in the budget for these agencies.
Because the formula has not yet been laid before Parliament there is no money for the district assemblies to spend. GETFUND is the same and you will remember that GETFUND needs to support those who are on scholarships, pay contractors, NHIS needs to spend money but up till now the formulae has not been laid before the house, and so our concern is when will these be done to enable the agencies to function,” Mr Kpodo questioned.
Apart from delays in the release of the statutory funds, Mr Kpodo, who is MP for Ho Central, also raised concern over the appointment of the Administrator of the District Assembly Common Fund.
“We are in the half year period now, we understand that there are problems with the appointments especially the DACF, while we are asking for the formula at the same time; we are asking that the process of regularising the appointment of the Administrator of the DACF should be expedited.”
Despite the Majority Leader, Osei Kyei-Mensah-Bonsu assuring Parliament that the formula is expected to be made available this week, Mr Kpodo maintained similar assurances in the past did not yield any results, and called for action to be expedited.
