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Seth Terkper – Finance Minister
The central government is broke to the extent that it cannot fund the activities of sector ministries anymore.
As a result, the Ministry of Finance has directed some departments and agencies, which are already cash-strapped, to cede 15 percent of their Internally Generated Funds (IGFs) to the sector ministries.
For instance, health institutions like the Accra Psychiatric, Ankaful and Pantang Hospitals, which have to rely on their meager internally-generated funds to feed inmates, are required to transfer 15 percent of their proceeds to the Ministry of Health and retain 85 percent.
Of late, government has been borrowing huge amounts of money from the capital market to pay salaries and service maturing debts.
A statement issued and signed by Major (rtd) M.S. Tara, Chief Director of the Ministry of Finance recently, which made this known, said the policy was part of rationalization measures introduced by government.
An estimated amount of GH¢295,807,849.86 is expected to be realized from the implementation of the policy this year.
It said the Controller and Accountant-General should open non-tax revenue clearing /holding accounts for the MDAs under the various sector ministries at the Bank of Ghana (BoG) or Ghana Commercial Bank (GCB).
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“Additionally, you are kindly requested to open or nominate various dedicated accounts at BoG and/or GCB for each of the affected sector ministries and umbrella organizations to receive 15 percent from their respective agencies.
“Similarly, the heads of the affected MDAs, who have not furnished this Ministry with their operational accounts, are also requested by copies of this letter to furnish this ministry with their respective operational accounts at BoG and/or GCB to receive 85 percent of the revenue proceeds from the clearing/holding accounts,” it said.
It added that “the said operational accounts should be submitted to this ministry immediately after the receipt of this letter to enable us issue the appropriate instructions through Controller and Accountant General Department (CAGD) to BoG and GCB for smooth implementation of the policy directive.”
By Cephas Larbi
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