Finished oil money for free SHS

General News on Tuesday, January 22, 2019

Source: Graphic.com.gh

2019-01-22

The government has decided to completely abolish the annual budget allocation (ABFA) of the Free High High School program.

This means that the government will not spend the proceeds of the country's petroleum resources on the program entering its third year of implementation.

A report of the Special Parliamentary Committee on Education on the annual budget estimates of the Ministry of Education for the year 2019 indicated that the budget allocation of this ministry of 12.87 billion GH ¢ in 2019 would not come from the ABFA.

Of the GHG 12.87 billion allocated to the Ministry to finance its programs and activities, GH ¢ 1.682 billion has been earmarked for the implementation of the Free SHS program.

Since the Fellowship Secretariat, which reports to the Government Equipment Office, has been responsible for direct financing of the Free SHS program since 2018, the budget allocation of GHG 1.682 billion under the program has been calculated on the budget allocation. total allocated to the program. the secretariat of the Ministry of Scholarships.

The amount was, however, properly captured by the Government Machinery Bureau, leaving the Ministry 11,15 billion GH ¢ to provide physical infrastructure and service delivery in the education sector, an area of priority funded directly by ABFA in the past.

The ABFA allocation to physical infrastructure and service delivery in education in 2018 overshadowed allocations to other priority areas such as agriculture and health service delivery.

For example, of the 1,546.38 billion GH ¢ whose use as ABFA was approved in 2018, of which 610.18 million GH ¢ in total, or 49.0% of the total Recipes from ABFA, education alone received more than 417 million GH ¢. .

Criticisms

Last year, the government reduced the ABFA allocation to the ministry by 95.3%, from 212 million GH ¢ in 2017 to 10 million GH ¢.

This followed sharp criticism from civil society groups that it was risky for the government to rely solely on oil revenues to fund the free SHS program, insisting that it needed to diversify its funding sources for the program because of the instability of oil prices on the world. market.

The minority in Parliament insisted that the use of oil money to fund the program at the expense of other sectors of the economy was unconstitutional and threatened to go to court for ask for compensation.

To counter these claims, President Nana Addo Dankwa Akufo-Addo said that the use of the country's oil revenues to finance the Free SHS program was the most appropriate use of funds.

"We use a portion of the revenue from our oil revenues to fund the program. I firmly believe that it is the fairest and most transparent use of oil revenues, instead of ending up in the pockets of politicians and bureaucrats, "said President Akufo-Addo.

Govt half-turn

Despite the president's willingness to use the country's oil revenues to fund the program, which is one of its flagship initiatives, GRAPHIC BUSINESS has learned that the Ministry of Education has not received funding from ABFA this year.

Restricting program funding with oil revenues could trigger a vexed discussion about sustainability and the smooth running of the program.

Dr. Steve Manteaw, Chair of the Public Interest Accountability Committee, told the paper that his office was well aware that the government was funding the ABFA Free SHS program.

"After what I understood, ABFA was paying the fees for SHS students," he said.

PRMA restrictions

In reviewing the use of oil revenues in the country, the Petroleum Revenue Management Act (PRMA) states that after the Ghana National Petroleum Commission (GNPC) receives its share of oil profits. , 70% of the remaining profit must be paid to ABFA. .

The law also states that 70% of ABFA should be invested in infrastructure projects, with the remaining 30% to be allocated to priority areas, including education.