Parliament approves Local Govt. Ministry's budgetary allocation
Accra (Greater Accra) 24 March 2000.
The Parliamentary Committee on Finance on Thursday recommended the establishment of special courts for the expeditious adjudication of tax cases.
In the Committee's view, the expeditious disposal of tax cases would engender enthusiasm in tax officers and also enable the people to respond more proactively to their tax obligations.
The recommendation was contained in the Committee's report on the year 2000 budget estimates of the Ministry of Finance, which was presented to Parliament after Mr Victor Selormey, Deputy Sector Minister, had moved a motion requesting the House to approve the Ministry's financial estimates of 137.68 billion cedis for this year.
The budget allocation, which was approved by the House, is made up 129.41 billion cedis government funding and 8.26 billion cedis donor support.
In his motion, Mr Selormey told the House that the Ministry's mission statement is to ensure macro-economic stability for the promotion of sustainable economic growth and development of the country.
He said the Ministry intends to achieve this objective through the formulation and implementation of sound fiscal and monetary policies, as well as efficient mobilisation, allocation and management of financial resources.
The report noted that the Ministry exceeded its ceiling as contained in the budget statement by 4.89 billion cedis.
The report, however, explained that the variance was due to adjustments in the personnel emoluments of subvented organisations under the Ministry, after the budget statement had been presented.
On targets for the revenue institutions, the Committee noted that for 1999, the Internal Revenue Service (IRS) collected a total of 901 billion cedis as against a projection of 965 billion cedis, approximately 4.4 per cent of the
gross domestic product (GDP).
For the current financial year, the report said the revenue collection target is 1.2 trillion cedis, which is about 33 per cent above that which was collection by the IRS, for 1999.
The report said the Customs, Excise and Preventive Service (CEPS), on the other hand, collected a total of 1.9 trillion cedis exceeding its target by 1.7 per cent in the import tax category. For the 2000 financial year CEPS is expected to collect a total of 2.6 trillion cedis, 36.8 per cent above total collection for last year.
The Value Added Tax Service is expected to collect a total of 1.26 trillion cedis, which is about 59 per cent more than the collection for 1999 financial year.
The Committee noted that the revenue institutions have been making significant efforts in revenue collection viewed against the background of resource constraints.
It commended them and urged them to intensify their collection this year.
In his contribution to the debate, Dr Apraku, noted that the economic indicators experienced a downward trend last year, suggesting that the economy is not doing well.
He reminded the House that last year, the sector Minister, Mr Kwame Peprah, assured Parliament that he would furnish it with a package of measures to address the economic problems confronting the country but said there was nothing in the budget statement to address the economic difficulties.
He urged the Ministry to provide the House with quarterly reports on the performance of the economy so that the Minority could offer assistance in shaping the economic policies of the country.
Alhaji Al-Hassan Malik Yakubu, Minority Spokesman on the Interior, asked the Ministry to endeavour to plan the budget in a manner that it should be possible to meet all allocations to the various sectors.
Mr Clement Bugase, Deputy Minister of Food and Agriculture and Member for Navrongo Central, said in spite of the economic difficulties last year, the government managed to keep the "ship of state afloat"
Alhaji Ali Amadu, NDC Member of Parliament for Atebubu South, called for more incentives to the VAT Service to entice the staff to intensify its revenue mobilisation efforts.
Mr Kwadwo Baah-Wiredu, NPP-Asante Akyem North, expressed the need for the Ministry to monitor the mode of granting loans by government agencies and institute measures to facilitate their recovery.
He cited a case where a rice company, which is on the verge of folding up, is indebted to the government to the tune of 1.5 billion cedis.
Mr J.H. Mensah, Minority Leader, questioned the Ministry's achievement of its objectives in its mission statement, for which Parliament approved money last year.
He wondered how the objective of macro-economic stability could be achieved when the value of the cedi was falling. Mr Mensah said the country is still in an economic mess and "the whole world knows about that". He urged the Ministry to provide realistic information so that "all of us can help put the economy on a sound footing".
Mrs Margaret Clarke-Kwesie, Minister of State at the Presidency and Member of Parliament for Ga South, suggested that if the tax courts are established, tax offenders, who are brought before them should not be given any option of a fine but be imprisoned to serve as a deterrent to would-be tax evaders.
Winding up the debate, Mr Selormey explained that the non- release of funds to the various sectors was not the making of the government and said the fact was that the expected revenue could not be realised.
He assured the House that the Ministry would ensure timely releases of estimates to the revenue agencies to enable them improve upon their revenue mobilisation efforts.
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Accra (Greater Accra Region), 24th March 2000.
Mrs Cecilia Johnson, Minister of Local Government and Rural Development, on Thursday told Parliament that the government's decentralisation programme is on course towards the attainment of the ultimate in local government.
She said it is only the government of the National Democratic Congress (NDC) that has shown concrete commitment to the process of decentralisation, adding that "other governments have paid only lip-service to the system".
Mrs. Johnson was reacting to some of the concerns expressed by members who contributed to a debate on her motion asking Parliament to approve a 222.24 billion cedis budgetary allocation to enable the ministry carry out its programmes for this year.
The Minister said the government is going through the process of decentralisation systematically from the metropolitan, municipal and district assemblies to their sub-district councils and unit committees to ensure that decision-making process extends to the grassroots level.
On poverty alleviation, Mrs Johnson said the government had 'taken the bull by the horns' by addressing the problem at all levels of the social strata, with emphasis on rural communities.
She explained that the poverty alleviation programme has no political motivation and that it is targeted to the poor and deprived in the society. In her motion, the Minister said the ministry has a sectoral responsibility for the formulation, implementation, monitoring and evaluation of policies and programmes aimed at decentralising the machinery of government and establishing a democratic and decentralised system of viable and well-resourced district, municipal and metropolitan assemblies and their sub-district councils and unit committees.
Mrs Johnson told the House that during the year, the Ministry will accelerate the implementation of the decentralisation programme and the democratisation process, build upon the human resource and capacity of
local government institutions.
The Ministry will also increase the coverage of births and deaths registration and continue with interventions to promote human development and sustain the orderly growth of rural and urban settlements.
The Minister said other major programmes to be undertaken by the Ministry during the period are the enactment of amendments to the Local Government Act 1993, (Act 462) and the preparation of schemes and conditions of service for the various categories of personnel of the proposed Local Government Service.
Mrs Johnson said out of the Ministry's allocation of 222.20 billion cedis, 83. 21 would come from the Consolidated Fund while 138.98 billion cedis would be funded from donor sources.
The Ministry's headquarters will receive the highest of 208.69 billion cedis, adding that Community Development would be allocated 6.22 billion cedis, Department of Parks and Gardens 5.39 billion cedis while the Births and Deaths Registry would take up the remaining 4.88 billion cedis.
In its report, the Parliamentary Committee on Local Government and Rural Development noted that under the Urban Development Renewal Programme, towns, roads, markets, drains and sanitation facilities including domestic and public toilets, would be provided in 16 urban areas.
The report said the government has negotiated for a total of 109 million dollars credit, which would become effective in July, for the building of management capacities of 23 district assemblies and to improve infrastructure in
25l towns. Communities would also be assisted to organise and implement self-help projects aimed at alleviating poverty, especially in the rural areas.
The Committee considered capacity-building programmes for district assemblies and other sub-structures as crucial to the development of the decentralisation process.
It recommended that the education of personnel of the district assemblies, urban, town, zonal and area councils, should be intensified to improve the human resource and institutional capacity of the decentralised government machinery.
The Committee noted that a careful assessment of the budgetary allocation indicates that, the sector needs to be well funded to meet its objectives.
Contributing to the debate on the motion for the approval of the Ministry's budgetary allocation, Mr J.H. Mensah said the development of the decentralised system is at a standstill.
He urged the Minister to chart a new course in this new area of the country's development, saying, "you should not be tempted to continue with the syndrome of business as usual". Mr Mensah expressed the hope that the Minister would furnish Parliament with proposals for further decentralisation, which would improve the degree of accountability, transparency and democratic participation in local government.
He said in his view, the office of district chief executive should be elective to make them more accountable to the people.
The Minority Leader suggested that the decentralisation programme should be seen to be politically neutral to attract long-term foreign capital inflows.
On MPs share of the District Assemblies' Common Fund, Mr Mensah said the monies are being used judiciously and on projects of greatest priority to the people. He disagreed that district chief executives should decide the purpose the funds should be used for.
Squadron-Leader Clend Sowu, NDC Member of Parliament for Anlo, suggested that the district assemblies should accept to pay the salaries of staff of the decentralised departments, some of which are not functioning due to lack of funds.
Mr Yaw Barimah, Minority Spokesman on Local Government and Rural Development, urged the Ministry of Finance to ensure that the district assemblies receive their share of the common fund on regular basis to be able to
perform their constitutional functions aimed at enhancing the country's decentralisation programme.
He suggested that the Ministry should set up a desk to monitor the activities of assemblies to stem the wave of malfeasance in administration at the local level.
Mr Dominic Azumah, NDC Member of Parliament for Garu-Tempane, stressed the need to train personnel at the local level to build their capacity to enhance the decentralisation programme.
Mr J.E. Afful, Minister of State at the Presidency and MP for Abura-Asebu-Kwamakese, suggested that the District Assemblies' Common Fund should be increased to 10 per cent of the national budget to help accelerate rural development.
Dr Kofi Apraku, Minority Spokesman on Finance, noted that there is no mechanism at the local level to monitor expenditure, giving room for corruption and embezzlement. He said in spite of the introduction of the poverty alleviation programme, poverty is on the increase in certain communities.
The Minority ranking member said to ensure democratic decentralisation, district chief executives should not be appointed.
Mr Francis Korbieh, Deputy Minister of Local Government and Rural Development on a point of explanation noted that it is a constitutional
requirement that the political heads of the districts are appointed. He said, not until the constitution is amended to change this arrangement the government cannot do otherwise.
Dr Apraku insisted that if the government is committed to a democratic local government system then it should introduce a bill to have the position changed.
Mr Kwaku Al-Hassan Dadzie, NDC Member of Parliament for Assin South, said the Ministry has, to a large measure, lived up to expectation in the implementation of the decentralisation programme.
Nana Akufo Addo, Minority Spokesman on Constitutional and Legal Matters, said under the constitution the local government system should not be partisan but during the eight years of its operation, the experience of the Minority is
that local government has been highly partisan.
He, therefore, urged the Minister to ensure that the non-partisan nature of local government as envisaged by the constitution, is strictly adhered to Winding up the debate, the Minister assured the House that the Ministry
would investigate all issues raised and address them where possible.
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Accra (Greater Accra) 24th March 2000.
Dr. Kwabena Adjei, Leader of the House, on Thursday urged media personnel to be judicious in their reporting, especially in this election year, so that they do not jeopardise the political future of Members of Parliament.
He said although journalists are at liberty to exercise their press freedom as provided under the constitution, they should exercise the greatest restraint and be circumspect in their reporting, especially in this election year.
Dr. Adjei was drawing the attention of the House to a publication in Thursday's edition of the "Independent" newspaper in which there was a report to the effect that some Members of Parliament do not make any contribution on the floor of the House.
The publication carried the pictures of four MPs and listed the names of about 60 legislators, describing them as "seat warmers" and "mute MPs".
Mr. J.H. Mensah, the Minority Leader, said journalists, especially those who report on the proceedings of Parliament, should be able to appreciate the work of parliamentarians.
He said their functions are not only making speeches but also about considering policies of government at committee levels, a function that cannot be quantified in terms of speech.
Mr. Justice Daniel Francis Annan, the Speaker, who also took a serious view of the publication and asked the leadership of the House to consider the matter, initiate the appropriate action and advise the chair accordingly.
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