The Government of Ghana does not have money to pay salaries of its workers across the country for September 2016; and has therefore, decided to use part of the budget already allocated to run some 23 Ministries, Departments and Agencies (MDAs).
The financial situation has reached crisis point and government, in an apparent panic reaction, DAILY GUIDE has learnt, has officially decided to take about GH¢500 million from these agencies, which are also cash-strapped.
In a letter dated August 24, 2016 and sighted by DAILY GUIDE, the government, through the Controller and Accountant General, has authorized the Bank of Ghana (BoG) to take a sum of GH¢469,176,900 from the 23 MDAs and transfer the money into the government’s Treasury Main Account at the Central Bank for salaries.
The letter stated clearly that the money should be transferred into an account Number 1018431499397 at the Central Bank and is meant “to facilitate the payment of salaries” to government workers.
Interestingly, money is being taken from oil revenue as well as agriculture to pay the salaries of workers.
An amount of GH¢200 million meant for contractors has been taken from the Ministry of Roads; seized an amount of GH¢20 million from the Judicial Service, ‘hijacked’ an amount of GH¢50 million from the budget of the GRA Petroleum Collection and different amounts of money from several other MDAs.
The situation has been attributed to inadequate tax income due to the bad economic situation in the country and the fact that government is using a chunk of the taxes collected to pay interest on loans it had acquired.
The affected MDAs include the Ministry of Roads and Highways Sub CF (GH¢200 million), Ghana Revenue Authority General Ref. (GH¢50 million), GRA Petroleum Collection (GH¢50 million), Government Machinery Sub CF (GH¢15 million), Judicial Service 15 percent retention (GH¢20 million), GRA Classification and Valuation (GH¢14 million), Ministry of Local Government Sub CF (GH¢10 million), KMA Sub CF (GH¢10 million), Ministry of Finance and Economic Planning (MOFEP) Divestiture Proceeds (GH¢20,176,900), Ministry of Works and Housing Sub CF (GH¢5 million), and Administrator General’s Department (GH¢10 million).
The rest are Ministry of Agriculture Sub CF (GH¢5 million), Fuel Marking Account (GH¢5 million), Chief Director Ministry of Local Government and Rural Development (GH¢5 million), Special Fiscal Progs. and Payments (GH¢5 million), GRA Tax Development Account (GHc5 million), Ghana Immigration Service (GH¢5 million), GOG National Electrification Fund (GH¢5 million), Ministry of Food and Agriculture (MOFA) OVCF Cedi Account (GH¢5 million), CIDA-MOFEP-FDA-AGRIC Budget (GH¢5 million), Joint Book Runners Transit Account (GH¢5 million) and Office of Parliament PE (GH¢5 million)
Many have expressed displeasure about government’s decision to take funds from the accounts of the MDAs to pay salaries, especially when most of them are underfunded.
According to the critics, the MDAs are already in dire need of money to run their affairs, and so government’s decision to eat into their funds will affect their operations and make them bankrupt.
Source: Daily Guide
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Anytime anyone borrowers and his debts exceeds 70% of his or her income, as is the case of Ghana currently, this is to be expected. But when people with economics and statistics background come out to say it, one does not expect this kind of rubbish reaction government and its appointees give to such analysis. If this trend is not halted, Ghana will grind to a halt completely economically before the December election. This NDC government has been awfully irresponsible and reckless in managing the financial resources of this country in an unprecedented manner never heard of in the history of this country. Mahama must give way to a better manager of our economy. The harm to our economy must stop with the election of the NPP.
How could you GoG(JM)? Sooner or later GH will be on tonaton.com for sale. Please JM cut down your campaign expenditure and save GH.
That can't be possible. Government should come again
Our money is being misused. Nana, we need you to manage our resources for us. And CHANGE is all I pray for.
this govt will sell Ghanaians for money...we need competent men to lead Ghana Oh Oh oh oh hmmm
Yieee!!! As3m aba! Ghana is broke!
So what happens after September.where will u take money to pay salaries.
Everyday!! Things are getting worse!!!
At least the moneys are coming from govt own coffers, not like selling state properties to pay salaries.
ENO NA EDA HO NO!