Ministries can now access budgetary allocation

Ministries, Department and Agencies of government can now access allocations made for them under the 2003 Budget Statement following Parliament's passage of the Appropriation Bill.

Parliament on 28 March approved of government spending for the fiscal year 2003, before breaking for the Easter recess, Mr A.I. Rashid, Public Relations Officer of the Ministry of Finance, said in a statement issued in Accra.


It said: "The approval is contained in the Appropriation Act, which is based on Article 176(2) of the Constitution. "The Act provides that all estimates of expenditure of public offices shall be included in a bill, usually in the form of the Budget Statement, presented to Parliament by the Minster of Finance.


"The passing of the Act means that the Budget Statement presented to Parliament, including various initiatives and economic measures, has been approved. It also means that public officials may now access funds up to the approval limits to implement their programmes as outlined in the Budget Statement.


"The Total spending approved for the financial year 2003 amounts to 21.3 trillion cedis, About 44 per cent of this amount is earmarked to finance statutory payments including transfers to households by way of pensions and gratuities and the national health fund; interest on the public debt; the District Assemblies' Common Fund, the Petroleum related, Road and Education Trust Funds. The remaining 56 percent will finance discretionary expenditure, which includes Civil Service Payroll, General Administration and Services and Development Expenditures.

"The passing of the Appropriation Act by Parliament marks the end of the budget preparation, presentation, dialogue and approval processes, which typically begins in July of the preceding year. "All Ministries, Department and Agencies submit their budget estimates to the Ministry of Finance at Budget Hearings that normally takes place in October. "The approved estimates are then sent to the Cabinet for further scrutiny and approval.


"These Draft Estimates are presented to Parliament by end November. "The Ministry of Finance uses the approved estimates to prepare the National Budget and Economic Policy, which it presents to Parliament in February.


"This presentation initiates debate among the Members of Parliament, who through various Parliamentary Select Committees, will conduct their own hearings on the various estimates by all Ministries, Department and Agencies.


"Their approval of the budget authorises that monies can now be withdrawn to meet government spending for the financial year. "Parliament on 20 December 2002 approved the Provisional estimates to cover spending for the period January to March, 2003. "This was to ensure that government business could continue whiles awaiting the full budget presentation in February of the fiscal year."