[ad_1]
Company News of Friday, February 1, 2019
Source: Myjoyonline.com
2019-02-01
The stabilization levy contributed $ 381 million to the total return on investment
According to the latest report on oil funds released by the Bank of Ghana, oil revenues invested since commercial production reached $ 866 million.
Details of the Oil Fund Report
The Heritage Fund, which was created to save the country money for future generations, also contributed $ 485 million.
The report showed that by the end of December last year, Ghana's share of oil revenue invested in publicly-backed securities outside the country was $ 866 million.
The stabilization levy contributed $ 381 million to the total return on investment. The stabilization levy has been set up so that part of the guaranteed oil revenue is allocated to this fund so that the government can use it to protect consumers in the event of a significant increase in oil price.
However, the data showed that some $ 206 million had been withdrawn from the fund. But the audits of the annual Petroleum Fund gave explanations.
Withdrawals from the Ghana Stabilization Fund
The Petroleum Revenue Management Act (PRMA) allows withdrawals from the Ghana Stabilization Fund (GSF) to compensate for the deficits of the ABFA and authorizes the Minister of Finance to set a cap on the GSF and withdraw the tax. 39, excess on the ceiling for contingencies and debt. refund.
Pursuant to subsection 23 (4) of the (PRMA), the GSF was capped at $ 300 million in the 2018 budget. Thus, in the second and third quarters, $ 77,681,757.40 million and $ 662,005.06 million, the excess over the ceiling, was transferred to the amortization fund in accordance with subsection 23 (3) of the PRMA.
The Heritage Fund, created to save a portion of oil revenues, generated a contribution of $ 485 million at the end of December 2018.
Annual report on oil funds of the Ministry of Finance
Total Petroleum Revenues (ie, Revenues from Discharges and Other Petroleum Revenues) in December 2018: $ 964 million.
How oil revenues are distributed
According to the petroleum tax regime, the government is entitled to oil royalties equal to 5% of gross production from the Jubilee and TEN deposits and 7.5% of the SGN field.
The PA also has deferred and Ghanaian holdings of approximately 13.64% and 15% in the Jubilee and TEN deposits, respectively. CAPI for SGN is 20%. The corporate income tax of upstream and intermediate oil companies is 35%.
The receipt of proceeds from these revenues and other sources of oil revenue is regulated by PRMA, as amended.
The PRMA establishes the FSP as a designated public fund to receive all oil revenues, as defined by law, and provides a framework for the collection, allocation and management of oil funds.
The PRMA requires that no more than 70% of the government's net oil revenues be designated as ABFA and not less than 30% as general distribution funds.
Of the amount transferred to the reform funds, the reform funds did not receive less than 30%, the rest being transferred to the reserve fund.
In 2017, the government maintained the 2014-2016 formula for the distribution of oil revenues for 2017-2019.
The areas of priority use of the ABFA have, however, been revised to reflect the objectives of the government's medium-term policy.
The priority areas have been revised in accordance with section 21 (6) of the PRMA as follows:
Agriculture
Physical Infrastructure and Education Service Delivery
Physical Infrastructure and Health Service Delivery; and
Development of road, rail and other infrastructures.
Concerns about investments in oil revenues
Some investment badysts have expressed concerns about the performance of these funds. However, in previous years, the government had argued that current laws regarding the use of oil revenues limited it to areas in which it could invest.
Source link
