The Minister of Finance, Ken Ofori-Atta, has submitted before Parliament a request from government for an Expenditure in Advance of Appropriation of GHS27. 4 billion to cater for the first quarter of 2021.
The Minister of Finance made the request when he appeared before Parliament on Thursday, October 28, 2020.
The Expenditure in Advance of Appropriation, has become a usual characteristic of election years to prevent transitional challenges in the smooth running of government for the first three months in the year after an election.
Speaking on the floor of Parliament, the Minister of Finance stated that, “That this Honourable House approves by resolution, the withdrawal of the sum of twenty-seven billion, four hundred and thirty-four million, one hundred and eighty thousand, five hundred and twenty Ghana cedis (GHS27,434,180,520.00) from the Consolidated Fund.”
“This is for the purpose of meeting expenditure necessary to carry on the services of the government in respect of the period expiring three months from the beginning of the financial year or on the coming into operation of the Appropriation Act in respect of the 2021 financial year.”
The government in July this year presented a revised budget statement to Parliament for approval of an additional GHS11.8 billion to support its expenditure for the rest of the year 2020.
This was after government projections for the 2020 financial year were affected by the economic implications of the coronavirus pandemic.
Earlier this year, the Finance Minister announced that government will require some GHS9.5 billion to fight the COVID-19 pandemic, a situation which may move the 2020 budget deficit to over seven percent.
He also stated that this will be 2.5 percent of Ghana’s revised GDP, and there will be a “fiscal gap of GHS11.4 billion”