The Minister of Finance has disclosed that a total amount of US$283,972,853.23 which was the excess over the capped amount was for the year 2018, was transferred to the Sinking Fund for debt repayment.
The Minister, Ken Ofori Atta said the transfer was carried out in accordance with Section 23 (3, 4 & 5) of the Petroleum Revenue Management Act (PRMA) 2011 (Act 815) as amended.
He stated that “in 2017, the Ghana Stabilisation Fund (GSF) was not capped, therefore, no excess amount transferred to the Contingency Fund or Sinking Fund for debt repayment.”
He made reference to paragraph 199 of the 2018 Budget Statement and Economic Policy of Government, capped the GSF at US$300 million, in line with Section 23(3) of the PRMA.
Mr. Ofori Atta made these remarks on the Floor of Parliament in response to a question asked by MP Bolgatanga Central, Isaac Adongo, on Tuesday, March 17.
Section 23 (3, 4 & 5) of the Petroleum Revenue Management Act (PRMA) 2011 (Act 815) as amended states that “the accumulated resources of the Ghana Stabilisation Fund shall not exceed an amount recommended by the Minister and approved by Parliament and the amount shall be reviewed from time to time as necessitated by macro-economic conditions.
Once the amount is attained, subsequent transfers into the Ghana Stabilisation Fund shall be allocated as transfers into the Contingency Fund or for debt repayment approved by Parliament.
The transfer and any subsequent transfers shall be made not later than the end of the month after the quarter in respect of which the excess revenue was calculated”.