Finance Ministry sets up committee to monitor cuts on IGF

The Minister of Finance has set up a committee to address concerns associated with government’s new policy on placing a cap on the internally generated funds of some ministries, departments and agencies.

Under the new policy, institutions such as the Universities and Psychiatric hospitals will not retain all their internally generated funds, a policy which has been condemned by the Minority in Parliament.

But addressing MPs, Minister of Finance, Ken Ofori-Atta said several measures had been put in place including the committee to be headed by a deputy Minister, to ensure smooth implementation of the policy.

“Additional budgetary allocations were made , prior to programmes such as National Health Insurance, Ghana Revenue Authority. Mr Speaker, for ease of implementation of caps on internally generated funds, we have retooled the non-tax revenue unit in the Ministry of Finance and also set up a new desk which will be overseen by the Deputy Minister to ensure that all implementation issues are dealt with strictly and efficiently.”

The setting up of this committee, has become necessary given the various concerns some Ministries have expressed over the move.

The Foreign Affairs Ministry had argued that, the Finance Ministry’s decision to limit its [Foreign Affairs Ministry] to only 35 percent of its internally generated funds, will make it challenging for them to fulfill commitments to Ghanaian missions abroad, as well as pay a $50 million loan from Societe Generale secured in 2016 for the refurbishment of Ghana’s foreign missions.

The Sector minister, Shirley Ayorkor Botchway, indicated that her outfit’s ability to handle basic responsibilities and cater for emergencies will be limited with the cut.

“The money that we are supposed to use to service the loan is the money that has been reduced considerably by the ministry of finance so what is going to happen is that, we might not be able to do anything and that will be a sad situation for us,” she complained.

By: Marian Ansah/

Published on 2 April 2017 | 5:20 pm at Source