PIAC worries about the inclusion of 440 million ¢ of oil revenue in the 2019 budget | Economy

The Public Interest Accountability Committee (PIAC) has criticized the Department of Finance for including some $ 440 million of unspent $ 2017 in this year's budget.

PIAC misrepresented the department's claim that unspent oil revenues of $ 440 million in 2017 are part of its $ 1.5 billion budget spending for this year.

In its complementary badysis of the 2018 Annual Semi-Annual Budget Financing Report (ABFA), PIAC stated that the Department confirmed at a meeting that the balance of $ 440 million in 2017 was not part of the expenditures. approved for 2018 under the Appropriations Act. for this year.

oil and gas

PIAC explains that the 1.55 billion ¢ that the ministry claims to be its planned ABFA spending for 2018 represents 70% of net oil revenues.

According to PIAC, this means that the programmed amount excludes the balance of 440 million ¢ in 2017.

The PIAC report also stated that the Department of Finance had confirmed this at a meeting held with PIAC on April 18, during which it explained that the 2018 budget had been submitted in April. September 2017 and the $ 403 million was approved by Parliament. that year, it could not have been included in the 2018 budget for approval by Parliament.

The report also indicated that the Ministry had confirmed that the remaining balance of $ 440 million in 2017 was therefore not part of the approved spending for 2018 under the Appropriation Act for that year.

The ministry indicated that the unspent amount will have to be reported in the 2019 budget for approval by Parliament before it can be spent, but in detailing the planned spending for the ¢ 1.55 billion, the ministry has included the balance of 440 million ¢ 2017

"The Department's explanation to PIAC and, by extension, to the Ghanaian public is unsatisfactory and misleading, as it gives the impression that the $ 440 million unspent in 2017 has been properly accounted for. If, as the department claims, the unspent amount of the 2017 ABFA will require Parliament's approval before it is spent, PIAC advises the department to remove the amount of its planned spending for 2018, "said PIAC.

PIAC stated that it was committed to working with the department to properly account for the unspent amount and results reported in its subsequent report.

PIAC urged the ministry to ensure that, in the future, its planned and actual expenditures continue to be in compliance with Section 21 (4) of the Petroleum Revenue Management Act (PRMA). , which imposes 70% of expenditures in public investments and 30% in goods and services. .