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Business News of Wednesday, 22 June 2016

Source: citifmonline.com

Finance Ministry overspends 2015 ABFA by 34 % – PIAC

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The Ministry of Finance spent 34% more of the total Annual Budget Funding Amount (ABFA) allocated to it from oil revenues accrued in 2015.

The ministry spent GH¢ 1,124.2 million compared to the GH¢ 1,086.28 million allocated to it.

This is according to the 2015 Annual Report on the Management of Petroleum Revenues by the Public Interest and Accountability Committee (PIAC).

The report also noted that the 2015 amount of GH¢ 1,086.28 million amount was however higher than the GH¢ 1,125 million allocated in 2014.

The highest amount of over 400 million cedis representing about 43% was allocated to the roads and other infrastructure sector.

Meanwhile Agriculture modernization received the least of about 60 million cedis representing 5% of the total ABFA for 2015.

Oil revenue declines in 2015

Oil revenue for the period under review declined by about 100 million dollars compared to government’s target for the year.

Figures quoted in the PIAC report indicated that total petroleum receipts in 2015 amounted to 396.17 million dollars below the revised 496.31 million dollars.

The 2015 oil receipts were also more than fifty percent less than the figure recorded in 2015.

The 2014 receipts of 978.02 million dollars were 581.85 million dollars more than the 396.17 million dollars million dollars recorded in 2015.

The development, the Committee contends was significantly due to the huge decline to the lower than expected crude oil price for a greater part of the year.

Click on photo gallery to see a full breakdown of the utilization of the 2015 ABFA illustrated in the table