Ghana: Gov’t to spend GHC50m on petroleum subsidies in 2015
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The government of Ghana is to spend GHC 50 million on petroleum
subsidies next year.
It has spent GHC 25 million in 2014.
The 2015 petroleum subsidy allocation was announced on the floor of
Parliament by James Avedzi, Chairman of the Finance Committee, during
the debate on the budget estimates for the government to finance its
obligations such as payment of pensions and gratuities for the 2015
financial year.
The House approved an amount of GHC 22 million as budget estimates for
the government to finance its obligations such as payment of pensions
and gratuities for the 2015 financial year.
Votes for such expenditure items were titled "Services of Other
Government Obligations."
Mr Avedzi noted in the committee's report on the vote that; "officials
from the Ministry of Finance, however, explained that the assumptions
underlying the 2015 allocation is that the automatic petroleum price
adjustment will continue in 2015.
"The allocation is intended to pay for any excess that may arise in
the course of the cross subsidy implementation," he said.
On projections for social security payments, Mr Avedzi said the
committee noted that employees' contribution of social security had
been projected as 10.3 per cent of estimated wage bill for 2015
instead of the actual statutory figure of 13.5 per cent of basic
salary.
He said officials from the Ministry of Finance explained that the 2015
estimated wage bill actually comprised other elements on which social
security was not payable and, therefore, projecting the social
security contribution at the 13.5 per cent might lead to double
counting and over estimation.
"The officials further explained that the current system made it
difficult to isolate the component of the wage bill on which social
security was applicable and deductible and as such the projections are
currently based on five-year average of social security payments by
government," he said.
He said it was, however, added that the Controller and
Accountant-General's Department actually used the statutory 13.5 per
cent in the computation and payment of the actual social security
payments.
He spoke also on outstanding payments and said the committee observed
that as at September 2014, outstanding payments into the National
Health Insurance Fund stood at one billion Ghana cedis while GET Fund
was GHc 379, 558,315.
"Outstanding Social Security payment stood at GHc948, 052,418 and that
of DACF was GHc410,223,600," he said adding that the committee was
informed that the Government intended to remain current regarding
social security and as a result had reached agreement with SSNIT to
securitise the outstanding social security contributions arrears.
On the National Health Insurance Fund, Mr Avedzi said the committee
was informed that the government intended to settle all arrears before
the end of the 2014 fiscal year whilst arrangement were far advanced
to settle up to the second quarter DCAF arrears by the end of 2014.
He announced that the remaining two quarters would be made in 2016 and
2017 financial years.
Credit: GNA