Agyei-Addo): Mr. Speaker, in seconding the motion I hereby wish to present the Report of your Committee. With your indulgence, I would want to read the introduction and the conclusion and having done so I would wish that you instruct the Hansard Department to capture the whole body of the Report as having been read in this House and in its entirety.
The Expendi ture Est imates of Government Financial Obligations for the 2006 fiscal year was laid in the House on 10th November 2005 and referred to the Finance Committee for consideration and report in accordance with article 181 of the Constitution and the Standing Orders of the House. This followed the presentation of the Government's Financial Policy by the Minister for Finance and Economic Planning, hon. Kwadwo Baah-Wiredu.
The Committee met with the Deputy Minister for Finance and Economic Planning, hon. Dr. A. Akoto Osei and his technical team and reports as follows:
2.0 2006 Estimates
The total amount of ¢16,644,660,- 000,000 has been allocated to be expended on the under listed Government Financial Obligations for the 2006 fiscal year.
The Government Obligations include
the Statutory Payments and Other Government Obligations.
S t a t u t o r y Payments
District Assemblies Common Fund
Transfer to Households --
Social Security (SSNIT) -- ¢711,600,000,000
National Health Fund (NHF)
Education Trust Fund
Petroleum Related Fund
TOTAL -- ¢13,993,200,000,000
Other Government Obligations -- ¢2,165,460,000,000
Strategic Oil Stocks -- ¢145,000,000,000
VAT Refunds -- ¢100,000,000,000
Outstanding Commitments -- ¢347,000,000,000
Other Transfers -- ¢350,000,000,000
HIPC Financed Expenditure -- ¢455,560,000,000
Repayment of Domestic Debt -- ¢1,167,700,000,000 Redemption of Deferred Interest Payment on inflation indexed Bonds -- ¢86,200,000,000
GRAND TOTAL -- ¢16,644,660,000,000
3.0 Observations and Recommendations
The Committee observed that the assumptions for 2006 on pensions are based on an annual increase of about fifteen per cent (15 per cent).
Gratuities are also based on 2005 projected outturn with an increase of 15 per cent.
The Committee also observed that the projection for the NHF is based on the expected yields from the National Health Insurance Scheme Levy as in the National Health Insurance Act, 2003 (Act 650) (two and a half per cent (2½%) of total expenditure on goods and services) plus two and a half per cent (2½%) of SSNIT contributions.
The National Health Levy is calculated based on the projections on the CEPS (import) and VAT (domestic).
The Committee further observed that Road Fund projection is based on calculations from the petroleum price-build-up formula from the Ministry of Energy (on the assumption of a levy of ¢600 per litre).
Other Petroleum-related Fund comprises Energy Fund Levy, Exploration levy based on computations from the petroleum price-build-up formula from the Ministry of Energy.