Oil revenue alone cannot support development – Prof.Buah-Bassuah

By Jerry
Azanduna, GNA

Bawku (UE) Aug. 21, GNA – Professor Paul
Buah-Bassuah of the University of Cape Coast and Chairman for the Public
Interest and Accountability Committee (PIAC), has called on government to
invest into other sectors as the revenues from oil alone cannot sustain the
country’s economy.

He said the country receives only five percent
of the royalty interest from the oil revenues and out of that, 70 per cent goes
to the Annual Budget Fund Amount (ABFA), while 30 percent goes to Ghana
Petroleum Fund (GPF), and that 30 per cent is then divided into two parts and
70 percent is given to the Ghana Stabilization Fund (GSF) while 30 percent is
sent to the Ghana Heritage Fund.  

Professor Buah-Bassuah said this at a meeting
in Bawku with heads of the decentralized departments, traditional rulers,
assembly members, opinion leaders and the media.

The event was to educate the participants on
the management and utilization of the oil revenue generated in the country.

He said the country seemed to have placed all
its hopes and expectations on the oil sector forgetting that other resources
such as cocoa, timber and Shea nut among others could also generate much
revenue if adequate attention is given to them.

Professor Buah-Bassuah said until the country
is able to discover more oil fields it cannot get any meaningful revenue from
the petroleum sector as what was being generated was too small to stabilize the
country’s economy.

He said the Petroleum Revenue Management Act
(PRMA) required that not more than 70 per cent of government’s share of
petroleum revenue for each financial year should be earmarked as Annual Budget
Funding Amount (ABFA), when the ABFA quarterly allocation is fully met.

He said the GPF received funds only after the
net petroleum receipts had exceeded the quarterly ABFA, however, the allocation
of the petroleum revenue during the first half of 2015 was based on that
formula, which meant that no transfers were made into the GPFs since the ABFA
quarterly were not met.

Participants at the meeting expressed worry
about the way the oil revenue was being utilized and called on government to
spend the petroleum revenue specifically on projects that would produce real
development.

GNA

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