Over 231 billion cedis earmarked for defence
Accra (Greater Accra) 12 March 2001
Parliament on Friday suspended "Question Time" to enable it to have adequate time to debate the budget statement which begins on Tuesday.
To this end, ministers and the leadership have been allocated 15 minutes each, chairmen/ranking members 10 minutes and backbenchers five minutes to debate the budget.
This was contained in the Business Statement for next week presented to Parliament by the Majority Leader, Mr J.H. Mensah.
Later, the motion for the adoption of the second report of the Committee of Selection was withdrawn and the Speaker, Mr Peter Ala Adjetey, requested both sides of the leadership to come to a compromise and bring a fresh report on Tuesday.
The report was first debated on February 1 but after a voice vote a Minority member challenged the Speaker's ruling and demanded a head count, which brought about disorder in the chamber.
When the Speaker asked for the motion to be moved on Friday for the head count to be conducted, the Minority intimated that since the process was not concluded on that day it should be seen as aborted and should be withdrawn.
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Accra (Greater Accra) 12 March 2001
This year's fiscal budget allocated an amount of 325.54 billion cedis to the Ministry of Works and Housing for the continuation and commencement of new projects and programmes in the country.
Mr. Yaw Osafo-Maafo, Minister of Finance, who announced this when he presented the 2001 budget to Parliament on Friday, mentioned specifically major on-going projects like the Keta Sea Defence, the Korle Lagoon Ecological Restoration Project, and other critical coastal protection works at Nkontompo, Ada, La, and the Osu Castle.
The rehabilitation works of water supply systems at Kpone, Weija, Barekese, Tamale, Winneba, Koforidua, and Cape Coast would also be continued accordingly.
The Minister said in order to sustain the provision and maintenance of rural water and sanitation, 660 new boreholes, 350 new hand-dug wells, 40 mechanised community pipe systems, 30 new gravity pipe systems, 1,300 new household latrines and 100 institutional latrines would be constructed this year.
He said the Ministry would also embark on a special housing package dubbed "Housing the People Scheme" that would be focused on low-income housing, Urban renewal and Rural Housing.
Under the scheme, he said, a home ownership mortgage insurance will be established. Facilitation role with its emphasis on acquisition and provision of basic infrastructural facilities would also be set up.
Mr. Osafo-Maafo announced that a loan package of 50 million US dollars that is expected to create 30,000 jobs is being sourced for members of the Ghana Real Estate Developers Association to increase the housing for both rental and home ownership.
Another 50 million dollars loan is being sourced for land servicing development and construction of rental and home ownership housing, he added.
The Minister said an innovative house approach to the security agencies has been conceived by the Ministry and would form part of the overall housing programme.
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Accra (Greater Accra) 12 March 2001
Mr Yaw Osafo-Maafo, Minister of Finance, said on Friday that government would appoint a Games Commissioner to regulate the business of lotteries and betting.
The Commissioner will operate from the Ministry of Finance by the end of May 2001. He said the commissioner would be expected to enforce the existing legislation relating to the lottery industry and also be responsible for registering and licensing all lottery operators, including the Department of National Lotteries (DNL).
All agreements with the DNL relating to the lottery business, which are not yet operational should be suspended until further notice to enable the Ministry of Finance to study their revenue implications.
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Accra (Greater Accra) 12 March 2001
Minister of Finance Yaw Osafo-Maafo said on Friday the government would review the tax system in order to bring about greater efficiency in collection, plug loopholes in the system and reduce losses through evasion, avoidance and corruption.
Presenting his maiden budget for 2001 to Parliament, the Minister noted that, as part of measures to widen the tax base, it is proposed to reduce the VAT threshold from 200 million cedis to 100 million cedis for retailers of goods except retailers of pharmaceutical products, which shall remain exempt.
In addition, the Minister said steps would be taken to provide logistics to the Internal Revenue Service (IRS) to spread the tax coverage, particularly in urban centres so as to rope in landlords, artisans and traders some of whom have not been paying taxes on income as required by law.
Mr Osafo-Maafo said airport tax has been increased from 20 US Dollars to 50 US Dollars with immediate effect. The increase of 30 US Dollars will be paid into the consolidated fund.
He also noted that government, through the Ministry of Justice and the Judicial Service will establish Tax Courts in every region to expedite action on tax related issues.
Private consultants and persons in professional practice such as lawyers, architects and engineers, some of whom were hitherto not paying taxes on their income, have been advised to do so.
The Minister said the principle underlying exemptions would be reviewed with all zero-rated imports attracting a concessionary duty rate of five per cent.
He said under existing arrangements, materials for the manufacture, processing of or prospecting for Timber and Natural products are exempted from import duty.
Other measures for enhanced revenue collection this year includes the automation of the Customs, Excise and Preventive Services (CEPS) warehousing facility to facilitate monitoring and an intensification of border patrols to reduce smuggling.
Mr Osafo-Maafo announced that an Integrated National Tax Audit Team, composed of professionals outside the revenue collection agencies, would from May conduct random auditing of companies and individuals.
He said government would embark on a complementary reform of public procurement to help maximise developmental returns from the efficient use of national economic resources.
He said the formulation of a national procurement code as well as the establishment of a mechanism for monitoring compliance with the code is envisaged.
The Minister said in the meantime, all ministries, departments, and agencies are expected to audit and review all contracts for the supply of goods and services, including consultancies, with the view to ensuring transparency, accountability and value for money.
He said recent developments and the insolvency and subsequent liquidation of three commercial banks and a number of rural banks do not help the maintenance of public confidence and hence in assisting the banks' deposit mobilisation efforts.
The Central Bank will therefore be strengthened to supervise the financial sector, the minister said.
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Accra (Greater Accra) 12 March 2001
More than 231 billion cedis has been earmarked for the activities of the Ministry of Defence (MOD) this year. Mr. Yaw Osafo-Maafo, Minister of Finance, who announced this in this year's budget statement, said a provision of four billion cedis has been made for the continuation of the Armed Forces Housing Project and five billion cedis for the commencement of the Burma Camp Exchange Project to enhance efficient communication.
During the year, the Ministry will also embark on the refitting of naval ships at the Sekondi Naval Base.
Mr. Osafo-Maafo said the government would work together with the personnel of the armed forces to possibly define an additional role for the forces to tap their organisational ability and technical skills to deal with developmental problems of poverty and illiteracy.
The Finance Minister said the MOD would ensure that a larger percentage of funds generated through peacekeeping activities is paid to the troops to boost their morale.
The Ministry of the Interior (MOI) will improve logistics of agencies under it and recruit and train 1,000 police personnel by the end of the year to achieve a police-civilian ratio of 1:1,000.
Mr Osafo-Maafo announced a provision of 203.82 billion cedis to the MOI, with an allocation of 1.4 billion cedis for the purchase of equipment and other logistics to enhance its operations.
The Criminal Investigation Department (CID), Mr. Osafo-Maafo said, has been given more than one billion cedis to enable it to acquire modern crime prevention and detection equipment and vehicles to increase their effectiveness.
In addition, he said, the police Service has been provided with six billion cedis to complete on-going projects and rehabilitate various stations and barracks.
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Accra (Greater Accra) 12 March 2001
Finance Minister Yaw Osafo-Maafo has directed Heads of Management Units to confirm the existence of their staff by signing the relevant parts of their payroll monthly.
He also directed the Controller and Accountant General's Department (CAGD) to conduct a payroll audit to ensure compliance of the order to eliminate ghost names.
As part of measures to control and eliminate the payment of unapproved allowances, subvented organisations will be required to submit the previous month's actual payroll to the CAGD before the current month's release is effected.
Additionally, all allowances will have their votes for salaries transferred into separate accounts at the Bank of Ghana and government will remove all regulatory bodies from the list of subvented agencies and explore alternative measures for their financial support. Mr Osafo-Maafo, who gave the order when he read the 2001 budget statement in parliament on Friday, said the government is disturbed by the impunity with which financial regulations are being violated through acts of commission and omission resulting in huge losses to the state and warned that government would pursue its "avowed declaration of zero tolerance for all acts of corruption".
Mr. Osafo-Maafo said all Ministries, Departments and Agencies with the assistance of the Attorney General, are expected to audit and review all existing contracts, the supply of goods and services, including consultancies to ensure transparency and accountability.
Mr. Osafo-Maafo said government will ensure that internally generated funds that hitherto did not get into the Consolidated Fund are lodged into the Fund to strengthen public finance management.
It has accordingly requested agents that collect tax revenues on behalf of government such as the Ghana Private Road Transport Union (GPRTU) to pay all such moneys into the Consolidated Fund.
He said an Economic Policy Co-ordination Committee at the Ministerial and Technical levels with key Ministries and the BOG to be operational by March 31, 2001 would be established to monitor expenditure, ensure fiscal discipline and properly prioritise the use of government and donor resource.
Mr. Osafo-Maafo announced that government would establish the Small Businesses Services (SBS) as a public-private partnership to support the development and growth of small and medium size enterprises (SMEs).
The SBS, which will cater for start-ups under an Enterprise Agency and Business Network for existing business potential, will bring together all government initiatives for SMEs and provide expertise, advice and management skills, among others.
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