Use of Heritage Funds a lazy man’s approach- Minority

February 16, 2017
Source: Eugene Davis/thebftonline.com/Ghana
Use of Heritage Funds a lazy man’s approach- Minority

The Minority in Parliament has described government’s reported plan to use the proceeds accruing to the Heritage Fund, as a lazy man’s approach from the petroleum revenues to finance their proposed Free SHS programme.

“The plan to use the Heritage Fund is not just an incompetent way of redeeming a campaign promise but a lazy man’s approach that completely undermines the national consensus.” Ato Forson, ranking member on finance said.

According to them it also affects the painstaking effort made to create a balance among the following; saving vrs expenditure, recurrent expenditure vrs capital expenditure, allocation of national resource among sectors of the economy.

Addressing the press at Parliament House, the ranking member on Finance Committee, Ato Forson explained that the investment and the amounts accrued so far would be woefully inadequate to meet the close to 1billion US dollars required annually to underwrite the Free SHS programme.

“We wish to remind Ghanaians that the proposal to allocate the Heritage Fund to education is not without other cost, first the Heritage fund forms part of the core reserve of the nation(BoG),which takes into account , the long term needs of the nation, such as macroeconomic stability of the country.”

The notion that the Heritage Fund is set aside from the country’s fiscal management is erroneous since a critical examination of the fiscal table in the budget shows that there is an accounting set-off between revenue generation and deficit financing, Ato Forson stated.

Senior Minister, Yaw Osafo-Maafo, at a forum in Accra this week hinted that the Heritage Fund which receives nine percent of the country’s annual petroleum revenue will be used to sustain the program.

He noted that doing so will guarantee the development of the country particularly the youth.

President Akufo Addo over the weekend announced that government will fully implement the free Senior High School (SHS) policy from the 2017/2018 academic year which starts this September.

The policy has been his party’s long-time campaign promise to Ghanaians to increase access to education in the country.