The Stabilisation Fund established under the Petroleum Management Act (PMA), has so far accrued $250 million, Minister of Finance and Economic Planning, Seth Terkper has said.
Speaking at The Forum in Accra on Friday, the minister explained that the fund was created to support the country’s budget in the event of oil prices plummeting.
The Stabilisation Fund set up under the PMA, enjoins government to set aside portions of proceeds from the oil revenue cushioning the budget when there is a drop in oil prices or when the country’s oil resource is exhausted.
The Forum was organised by the ChannelTwo Communications, a public relations and advocacy communications company, to discuss the budget and its implications on Ghana as a middle income economy as well as the economic prospects of the economy.
It was attended by the Minister of Foreign Affairs and Regional Integration, Ms. Hannah Serwaah Tetteh and some captains of industry.
Mr. Terkper said the medium term economic prospects looked bright and urged investors to disregard the Fitch’s downgrading of the economy.
The minister acknowledged that the economy encountered fiscal difficulties this year which was influenced by a fall in commodity prices, implementation of the Single Spine Pay Policy and a drop in government revenue and interest payment.
Mr. Terkper said the fiscal policy outlined in the 2014 budget was aimed at fiscal consolidation through improved revenue mobilisation and rationalisation of public expenditure.
Touching on the public debt, Mr Terkper said the country’s public debt was wrongly classified because loans guaranteed by government for state entities to finance key projects which could pay for themselves, were classified as public debt and cited the Bui Dam and the gas processing as examples.
The Director of Channel Two, David Ampofo said the programme would be organised periodically to discuss important national issues.
He commended the Fidelity Bank and Svani Group for sponsoring the programme.
Source: The Ghanaian Times
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