The Ghana Education Trust Fund (GETFUND) Act, Act 581 was passed and assented to in 2000, to provide funding for all levels of education in the country. There is no gain denying the fact that in the past seventeen years, the GetFund has played a very meaningful role in the promotion of education at basic, secondary and tertiary levels. But for GetFund, the infrastructure in our schools would be nothing to write home about. This became possible because the law made provision for the receipt by GetFund of two and half percent (2%) of all Value Added Tax (VAT) revenue received every month. This has generated a lot of money into the kitty of the Fund to execute its mandate. This included the provision of infrastructure, services such as scholarships and the purchase of vehicles for all second cycle and tertiary institutions in the country.
Ladies and Gentlemen, it is however sad to mention that the GetFund over the years has recorded low receipt of funds and this is beginning to mark the collapse of the Fund.
In 2016, a budgetary allocation of not less than One Billion and Two Hundred Million Ghana Cedis(GH₵1,200,000,000) was made to the GetFund for its activities. However, in 2017 instead of the Fund receiving an upward of what it received in 2016, the Earmarked Funds Capping and Realignment Act, 2017 (Act 947) was used to reduce funding to Seven Hundred and Ninety Million, Two Hundred and Twenty Four Thousand, One Hundred and Forty– Nine Ghana Cedis (GH₵790,224,149.00). It was interesting to discover at the end of 2017 that the Minister of Finance without the approval of Parliament further reduced GetFund allocation to Six Hundred and Forty – Four Million, Two Hundred and Sixty – Five Thousand Ghana Cedis (GH₵644, 265, 000.00). This unilateral action of the Minister denied GetFund of almost One Hundred and Forty – Six Million Ghana Cedis (GH₵146,000.000.00). As if that was not enough, the Ministry of Finance failed to release all the funds received on behalf of GetFund at the end of 2017. By March 2018, the Ministry of Finance was owing Getfund a total amount of Ninety – Five Million, Two Hundred and Twenty – Four Thousand, Nine Hundred and Twenty Nine Ghana Cedis, and Sixty Four Pesewas (GH₵ 95,224,929.64). As we speak today, GetFund has not received its full allocation for 2017.
Ladies and Gentlemen, for 2018, a capped and realigned allocation of Nine Hundred and Twenty – Four Million, Eight Hundred and Four Thousand, Five Hundred and Forty – Three Ghana Cedis (GH₵924,804,543.00) was allocated to GetFund. Five months into the year and records at the Ministry of Finance and the Controller and Accountant General’s Department have shown that no attempts are being made to release any part of the 2018 allocation to GetFund. For the twelve months of the year, an average of Seventy – Seven Million Ghana Cedis (GH₵77,000,000.00) is what GetFund is expected to receive from the Ministry of Finance. This is just about half what the Office of Government Machinery, that is, the Office of the President receives every month.
The minority is worried because of the additional government intervention programmes that have been pushed on GetFund since the beginning of this year which will take over Fifty percent (50%) of total funding. These intervention programmes which hitherto were on the budget of the Ministry of Education and the Scholarship Secretariat include Capitation Grant, Feeding Grant to Special Schools, Subsidy for SHS students under the Progressively Free SHS, Feeding Subsidy for students under the Progressively Free SHS and Counterpart Funding for Development of Skills for Industry Projects as well as Teacher – Trainee Allowances. This gives a total of Four Hundred and Seventy-Seven Million, Five Hundred and Eleven Thousand, and Six Hundred Ghana Cedis (GH₵477,511,600.00) out of the allocation. It means that GetFund is left with Four Hundred and Forty – Seven Million, Two Hundred and Ninety – Two Thousand and Nine Hundred and Forty Three Ghana Cedis (GH₵447,292,943.00) for its programme and projects for 2018. The Minority is concerned about the unnecessary transfer of a funding of all educational activities to GetFund thereby stifling it and making it head towards total collapse.
Our advice to the Minister for Finance is to take the necessary steps to release all arrears of 2017 and the first – four months of 2018 to GetFund within thirty days or we will advise ourselves. This disregard of the Minister of Finance towards the release of statutory funds to the relevant bodies established by law is unbecoming and must be stopped now.
The GetFund must not be stifled to collapse.
Thank you.
Signed:
Hon Peter Nortsu – Kotoe
(Ranking Member on Education)
