Budgetary allocation for ministries

Towards poverty Reduction

Government to revise VAT

Measures to curb irregularities in expenditure

Gateway projects to take off in Tema port

Government to commercialise activities of science & technology institutions

Education Trust Fund Bill soon

Communication Infrastructure for Security Agencies

Focus on socio-economic aspect of HIV/AIDS

Accra ( Greater Accra) 10 Feb 2000

Mr Kwame Peprah, Minister of Finance on Wednesday presented this year's budget statement to Parliament

He announced various sums allocated to the ministries to enable them to carry out their programmes.

The Ministry of Finance gets 132.8 billion cedis.

The Ministry of Local Government and Rural Development gets 222.2 billion cedis.

Ministry of Foreign Affairs gets 97.6 billion cedis.

Office Parliament gets 91.3 billion cedis out of which 75 billion cedis

would be used to rehabilitate Job 600 (State House Complex).

Ministry of Agriculture gets 174.9 billion cedis.

Ministry of Lands and Forestry gets 69.2 billion cedis.

Ministry of Mines and Energy gets 237.9 billion cedes

Ministry of Trade and Industry get 71.88 billion cedis Of this amount

19.77 billion cedis would be from government sources and 52.11 billion from donors.

Ministry of Tourism gets 5.8 billion cedis.

Ministry of Ministry of Environment Science and Technology get 72.5 billion cedis.

Ministry of Roads and transport gets 724.5 billion cedis.

Ministry of works and Housing gets 228.0 billion cedis.

Ministry of Education gets 1,032 billion cedis made up of 970.7 billion cedis from government and 62.3 billion cedis from donors.

Ministry of Health gets 340.1 billion cedis

Ministry of Youth and Sports gets 32,5 billion cedis.

Ministry of Employment and Social Welfare gets 17.2 billion cedis of this amount 2.5 billion cedis has been earmarked for investment activities.

The Ministry of Communications and its agencies get 32.2 billion cedis.

The Ministry of the Interior gets 227.6 billion cedis out of which the Police Service gets 126.3 billion cedes.

Judicial service gets 35.4 billion cedis.

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The Government will work to improve further on the decline in the incidence of poverty between 1992 and 1999 as reported under the fourth Ghana Living Standards Survey.

The Minister of Finance, Mr Kwame Peprah, told Parliament on Wednesday that the government's policies in the 2000 budget "are designed to reduce gender, urban-rural and other socio-economic and geographical imbalances while improving further the welfare of Ghanaians in general through sustainable economic growth.

He said as part of the poverty reduction programme, Government has made a non-wage allocation of about 613 billion cedis in the 2000 budget to provide basic services such as education, primary health care and safe drinking water as well as welfare services for vulnerable groups including people with disabilities.

In addition, the District Assemblies will spend an estimated 107 billion cedis from the District Assembly Common Fund to complement government's efforts in poverty reduction this year.

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The focus of implementation of the Value Added Tax (VAT) this year is to consolidate the gains made in the second year of operation.

The VAT secretariat will institute new measures that would improve on the level of compliance in the areas of registration of eligible businesses, diligent and consistent collection of VAT by registered traders and the promotion of efficiency and effectiveness in its administration.

Mr Kwame Peprah, Minister of Finance, told Parliament on Wednesday that the VAT Service would, therefore, intensify monitoring and surveillance to enhance compliance, particularly in the retail and distributive trades.

He said as part of the process of consolidating VAT, the key parameters of the tax, particularly the coverage, "will be revised to enhance revenue yield".

He said legislative action would be initiated during the year to narrow the scope of exemptions and bring lot more supplies into the scope of the tax as part of the measures to realise the projected enhancement in revenue yield.

The Ministry of Finance will make the release of funds to all MDAs, which collect non-tax revenue conditional on the presentation of quarterly returns on fees and charges to the Ministry and the transfer of same to the Consolidated Fund.

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The Government on Wednesday announced seven measures to curb irregularities that have created problems for managing expenditures.

Mr Kwame Peprah, Minister of Finance, in his 2000 budgetary statement to parliament on Wednesday listed the measures to be implemented this year as follows:

*The Controller and Accountant-General's Department and the Auditor-General's Department will intensify personnel audits to eliminate any remaining ghost names from the Government payroll.

*The Government will ensure strict compliance with procedures set out for purchases by MDAs. Consequently, the Government will not pay for any purchases made under expenditure items three and four for which no prior approval has been obtained from the Ministry of Finance.

*Similarly, the Government will not accept to fund any international event for which no budgetary provision has been made and no prior approval obtained from Cabinet.

*With immediate effect, only persons of ministerial rank are to use cellular mobile phones as a matter of right at the expense of the Government.

*Permission should be sought from the Chief of Staff, Office of the President, by all officials in Ministries, Departments and Agencies that subsist on the Consolidated Fund before travelling overseas to participate in conferences and seminars.

*To cut down expenditure on foreign conferences and seminars, Ghana's missions abroad should, as much as possible, be requested to send representatives to the conferences and seminars on behalf of the MDAs and reports submitted accordingly.

*To curb the practice whereby in the last quarter of the year there is a rush to submit certificates to the Ministry for payment even when very little or no work has been done, the Project Monitoring Unit of the Ministry will be equipped to carry out verification of all such certificates in collaboration with the Serious Fraud Office before payment is effected.

Mr Peprah said the directive on the need for a certificate for commencement of work before actual construction "starts will be strictly enforced.

"Consequently, no payments will be effected for work done on any projects for which such a certificate has not been obtained from the Ministry of Finance.

"For the avoidance of doubt, these certificates will be required for both on-going and new projects covered in the year 2000 budget and subsequent years."

He said heads of MDAs are to ensure that fixed Assets Registers are maintained as a measure to improve the management of state resources and as required by law.

He said as part of measures to minimise fraud and defalcation of government funds, "prosecution will now be an initial option in all cases of malfeasance revealed in the Auditor-General's report.

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The Government is undertaking a number of initiatives and projects under the Ghana Trade and Investment Gateway Programme, Mr Kwame Peprah, Minister of Finance, told Parliament on Wednesday.

He said the Gateway projects that would take off this year include the construction of a devanning area in the Tema port area.

Studies leading to the extension and dredging of Quay Two at the Tema Harbour will be undertaken and the installation of X'ray scanning and the Ghana Community Trade Network,

"All these activities when completed would enhance customs revenue generation and at the same time facilitate trade.

"Furthermore, work for the construction and extension of all the off-site infrastructural facilities including road, drainage, water supply and sewage, power and telephone to the Tema Free Zones Enclave will commence this fiscal year."

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Government intends to commercialise the activities of science and technology institutions under the Ministry of Environment, Science and Technology to reduce their dependence on Government subvention.

Mr Kwame Peprah, Minister of Finance, told Parliament that the law establishing the Ghana Atomic Energy Commission "is being reviewed to make it possible for the Commission to also engage in commercial activities".

He said the legal status of GRATIS would also be reviewed towards "the establishment of a Foundation which will be self-financing and relying less on government subvention".

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A bill to establish the proposed Educational Trust Fund will be laid before Parliament soon.

Mr Kwame Peprah, Minister of Finance, said the Educational Trust Fund "will be funded mostly by an increase in the VAT rate by 2.5 per cent.

Additionally, District Assemblies are to establish a District Education Support Fund for the implementation of a bursary/scholarship and loan scheme at the second cycle and tertiary levels.

To ensure the availability of qualified teachers in deprived areas, District Assemblies will be encouraged to sponsor candidates for admission into teacher training colleges who "will be bonded to take up appointments within the sponsoring districts."

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The Government proposes to integrate and modernize the existing communication infrastructure of the security agencies to replace the out-dated stand-alone systems which are neither effective nor cost efficient.

Mr Kwame Peprah, Minister of Finance, told Parliament on Wednesday that the new approach "will ensure a more effective nation-wide network with the capacity to meet new challenges in maintaining law and order, in the fight against crime and to safeguard national security.

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Mr Kwame Peprah, Minister of Finance, said on Wednesday that the government will focus more attention on HIV/AIDS not only as a health problem but also as a social and economic problem.

He told Parliament that the government is, therefore, preparing a national policy on the management of HIV/AIDS.

Government will appoint and strengthen a Co-ordinating Committee for the integration of the many HIV/AIDS related activities of the Ministries of Health, Education, Food and Agriculture, Employment and Social Welfare and Youth and Sports.

He said Government will support particularly HIV/AIDS control activities under the Ghana School Health Education Programme in order to sensitise students on the dangers of HIV/AIDS.

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