Energy think tank, Africa Centre for Energy Policy (ACEP), has joined calls for the Finance Minister to shelve a plan to draw down on the Heritage Fund to mitigate the effects of the coronavirus on the economy.
In an analysis on the Minister’s recent statement to Parliament on the economic impact of the Covid-19 pandemic on Ghana, ACEP acknowledged that although the economy is stressed due to the pandemic, the government has other funds to fall on.
“The Heritage fund will not solve Ghana’s problems if spent today. The discipline to save for the future is a difficult one but must be encouraged and sustained.
“Spending the heritage fund today is akin to telling citizens to go for their pension because they are faced with challenges in a Covid-19 world. The future of oil is more uncertain today than it has ever been. The fund is envisioned to provide support for the budget when Ghana is no longer receiving revenues from oil and that is an important foresight that should not be crucified today,” ACEP said in the analysis.
Finance Minister, Ken Ofori-Atta, has announced his intention to amend the Petroleum Revenue Management Act (PRMA), the law governing a raft of policies in the petroleum sector, including the Ghana Heritage Fund (GHF), to enable him draw from the Fund.
The Ghana Heritage Fund, a creation of the PRMA, provides an endowment to support the development of future generations when the petroleum reserves have been depleted. It is currently estimated to be worth $591.1 million.
Since the intention to withdraw from the Fund was announced in Parliament, the Minority and civil society organisations have kicked against it.
Read ACEP's full analysis below.
Latest Stories
-
Bright Simons: DBG, Ghana’s top development bank, goes for the jugular
16 mins -
Governance and Entrepreneurship consultant demands global support for Africa’s young farmers
17 mins -
Ghanaians reminded to prioritise regular health check-ups
18 mins -
Salah brace sends Liverpool 8 points clear
28 mins -
Leicester City sack manager Steve Cooper
31 mins -
Akwasi Sarpong wins AIBs 2024 Award for BBC OS coverage of Israeli hostage release
42 mins -
Gospel musician Adeline Baidoo shares inspiring story of triumph over adversity
42 mins -
Kwesi Yankah: Escape from Ghana
1 hour -
Musician DeThompson DDT drops new single Happiness
1 hour -
Ukraine’s Grain Initiative raises over $200m, provides lifeline amid global food crisis
2 hours -
Dancehall queen Spice donates to students of 3 basic schools in Accra through MYO Global Foundation
2 hours -
Kamal-Deen Abdulai urges Nanton to help NPP break the 8
3 hours -
TVET is not a dumping ground for underperforming students – C/R Minister
3 hours -
BoG Governor calls for increased preparedness to respond to emerging financial sector challenges
3 hours -
IGP calls on public to aid Police in ensuring peace during 2024 election
4 hours