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Finance Minister requests review of Petroleum Act to let use of Heritage Fund to fight coronavirus

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The Finance Minister, Ken Ofori Atta, has requested Parliament to amend the modification of the Petroleum Profits Management Act (PRMA), to make it possible for the federal government to obtain the Heritage Fund to enable in the struggle from the new coronavirus pandemic.

According to the Finance Minister, there is an approximated
US$591.1 million in the Ghana Heritage Fund.

The Fund was designed under the Petroleum Earnings Administration
Act (PRMA) (Act 815), 2011, to established aside a part of petroleum profits for the
benefit of potential generations.

Briefing the Home Monday, March 30, 2020, on steps
federal government has outlined to mitigate impression of choices taken to lower the
amount at which the viral an infection was remaining recorded in the region, Mr. Ofori
Atta even further sought the assist of legislators, to amend the appropriate legal guidelines to
lower the cap of the Stabilisation Fund from $300 million to $100 million.

This he explained will allow the governing administration utilise the extra funds to assist the government’s Coronavirus Alleviation Programme (CAP).

He claimed: “Through this procedure, an approximated GHȼ1,250
million will be transferred into the Contingency Fund to Fund the CAP” just before
tabling a number of requests ahead of the Home.

“Mr. Speaker, we thus, desire to find approval from this
August Residence for the Finance Minister to use the Funds which will be out there
in the Contingency Fund to fund the Coronavirus Alleviation Programme. 

b.            Set up
with Lavatory to defer fascination payments on non-marketable devices believed at
GHȼ1,222.8 million to 2022 and beyond

c.             Change
expenditures on Products & Services and Capex downwards by GHȼ1,248 million

d.            Safe
the Globe Financial institution DPO of GHȼ1,716 million

e.            Safe
the IMF Quick Credit rating Facility of GHȼ3,145 million

f.             Reduce
the proportion of Internet Carried and Taking part Fascination thanks GNPC from 30% to
15%

g.            Amend the
PRMA to allow a withdrawal from the Ghana Heritage Fund to undertake emergency
expenditures in durations of countrywide unexpected emergency. There is an estimated US$591.1
million in the Ghana Heritage Fund.”

Mr. Ofori Atta defined that, even soon after reflecting the
proposed steps, the resulting fiscal deficit as a proportion of GDP is in
surplus of the 5% threshold stipulated by the Fiscal Obligation Act, 2018
(Act 982). In addition, the main harmony is a deficit equal to 1.1% of
GDP opposite to the optimistic harmony prescribed by the Fiscal Accountability
Act, he stated.

“The amazing situations posed by the novel
coronavirus pandemic (a overall health epidemic) with major impression on the
macro-fiscal functions of Authorities surely has implications on the fiscal
policies as outlined in the Fiscal Duty legislation. Mr. Speaker we will proceed
to monitor the fiscal situation and get accountable and ideal selection
in because of course,” the Finance Minister included.

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