Government's expenditure excesses triple deficit in 2000 - AG Report

Accra, Aug. 2, GNA - Shortfalls in government revenue collections and excesses in expenditure led to a deficit of about 1.5 billion cedis in 2000, a figure which more than tripled the previous year. The Auditor - General's Report on the public account of government

copied to the Ghana News Agency on Monday noted that this was against government budgeted surplus of 510 billion cedis for the year under review. The Report subsequently recommended the introduction of expenditure ceilings and strict revenue accountability and control measures, which it said, would assist in the achievement of targets and eliminate excesses in the ensuing years.

It said due to slow recovery rate of loans granted, a tune of 406.6 billion cedis remained unpaid by beneficiary companies and urged the Ministry of Finance to vigorously pursue the outstanding debts in order to increase government cash flows. "...The Controller and Accountant General should liaise with the Ministry of Finance and Economic Planning to seek parliamentary approval before writing off delinquent loans which totalled over 57.9 billion cedis," the Report said.

It said the Auditor-General was seriously concerned about the fact that a substantial sum had been lost to public funds and there was, therefore, the need to pursue outstanding loans rigorously and write-off actions should be the last resort. He said; "under no circumstance should any new loans be given to companies, who have defaulted or failed to beep up with the repayments on existing loans".

Actual revenue collected for 2000 stood at 5,169.1 billion cedis, a figure which fell short of the estimated amount of 6,070.0 billion cedis. The document cited staff constraints, inadequate logistics and delays in the submission of financial statements for audit as reasons for the late completion of the Auditor General's Report.