Budget made gains- Finance Minister

Accra, Nov. 4, GNA- The Minister of Finance and Economic Planning, Mr Yaw Osafo-Maafo on Tuesday said the outcome of the interplay between revenues and expenditure resulted in a better than programmed budget balances over the past six to nine months.

He said over the period, targets in various areas such as administration and service, investments, HIPC financed expenditures, and arrears clearance and personal emoluments indicate gains rather than deficits.


The Minister disclosed this in a motion tabled for the adoption of the Review of the Economic Policy of the Government of Ghana for the remainder of 2003 Financial Year in Parliament.


He was allowed to present the motion when the First Deputy Speaker, Mr. Freddie Blay had ruled that he could present the review in the form of a motion, after 37 minutes of argument and counter arguments on the mode of presentation.


Mr. Osafo-Maafo said the outturn of personal emoluments from January to July 2003, amounted to 3,063.3 billion cedis, against the budget of 3,179.2 billion cedis, showing an under expenditure of 115.9 billion cedis.


He said this under expenditure, might however be temporary as there were some substantial amounts of salary increments, especially for subvented organisations, that were yet to be posted to government accounts.


Mr. Maafo said the government HIPC-financed expenditure was 462.6 billion cedis compared to the budget of 528.6 billion cedis, adding that investment outlays also amounted to 1,149.9 billion cedis, against a budget of 1,889.8 billion cedis.

He said the outturn was made up of domestic financed investment of 185.2 billion cedis and foreign financed expenditures of 964.7 billion cedis.


"About a month ago, government decided to provide an additional amount of 183.6 billion cedis from the HIPC fund to be released to Metropolitan and District Assemblies," he said adding, "Out of the total, 12.32 billion went to the Metropolitan areas, 9.24 went to the municipalities and the remaining 158.62 billion cedis went to the district assemblies."


Mr. Maafo said 50 per cent of the amount is to be released to the beneficiary districts upon application through the Ministry of Local Government and Rural Development (MLGRD), adding that the fund will be limited to education, health, water and sanitation under the supervision of the MLGRD.


The Minister said administrative and service expenditure over the period amounted to 603.5 billion cedis, against a budget of 1,143.6, adding that 343.1 billion cedis of the outturn was in respect of service activity.


"With respect to utility bills, government is negotiating with the utility companies to settle any amounts owed them by ministries, departments and agencies (MDAs)," he said.


He said over the period, road arrears clearance was 183.8 billion cedis, compared to the target of 109.9 billion for the period, adding that non-road arrears clearance amounted to 210.1 billion cedis as against the target of 114.9 billion cedis.