Mr
Speaker, I beg to move:
That this honourable House adopts the
Report of the Committee of the Whole
on the Proposed Formula for the
Distribution of the Ghana Education
Trust Fund (GETFund) for the Year
2023.
Mr Speaker, in so doing, I present your
Committee's Report:
1.0 Introduction
Pursuant to section 8(2) of the Ghana
Education Trust Fund Act, 2000, (Act
581), the proposed formula for the
distribution of moneys expected to
accrue to the Ghana Education Trust
Fund (GETFund) for the year 2023 was
presented to Parliament on Friday, 17th
March, 2023, by the Hon Majority
Leader and Minister for Parliamentary
Affairs, Mr Osei Kyei-Mensah-Bonsu.
The proposed formula was,
subsequently, referred to the Committee
of the Whole for consideration and
report. The Committee met on
Wednesday, 14th June, 2023, and
considered the referral.
The Committee expresses its
appreciation to the Hon Minister for
Education, Dr Yaw Osei Adutwum, the
Administrator of the Fund, Dr Richard
Boadu, and officials of the GETFund for
attending upon the Committee.
2.0 Reference Documents
The Committee, in preparing its
Report, availed itself of the following
documents:
i. The Standing Orders of the House;
ii. The Ghana Education Trust Fund Act, 2000 (Act 581);
iii. Earmarked Funds Capping and Realignment Act, 2017 (Act 947);
iv. The Ghana Education Trust Fund (Amendment) Act, 2018 (Act
972);
v. The Proposed Formula for the Distribution of the GETFund for
the year 2022; and
vi. The Proposed Formula for the Distribution of the GETFund for
the year 2023.
3.0 Background
Section 8(2) of Act 581 provides that:
(1) There shall be established by the Board within the Fund accounts in
respect of the following:
a. Tertiary education.
b. Second-cycle education.
c. Basic education.
d. Investment.
e. Other related aspects of education such as distance education, school
and public libraries and special
education.
(2) The Board shall submit annually to
Parliament for approval, a formula
for the distribution of monies to
the various accounts under
subsection (1).
This is to design and submit proposals
allocating Funds to the sub-sectors,
agencies and institutions within the
public education sector through the
mechanism of a distribution formula for
consideration and approval by
Parliament.
The law further stipulates that some
crucial factors related to education
delivery and development are taken into
account in the process of preparing this
Formula. These relevant factors are:
• Promotion of the study of Mathematics, Science and Technology;
• Advancement of female education;
• Reduction in the high level of illiteracy in historically disadvantaged areas;
• Promotion of Computer, Vocational/Technical Education and
Training; and
• Equitable allocation of funds to the districts at the pre-tertiary level of
education.
All of these sub-sectors, together with
the related critical factors, received
consideration and attention in the
process of designing this Formula. In this
regard, therefore, the structure of
spending has been calibrated to support
and achieve the following:
• Expansion of access;
• Improvement of quality; and
• Closing of those social and spatial gaps that tend to generate
inequities in the education sector,
especially at the pre-tertiary level
and, also in deprived and hard-to-
reach communities.
Funding allocations are made based on
the Government's Annual Budget Statement and Economic Policy
approved by Parliament for each fiscal
year. This allocation is made in
accordance with the GETFund Act, 2000
(Act 581) as amended by Act 972, and
the Earmarked Funds Capping and
Realignment Act, 2017 (Act 947).
4.0 Performance for 2022
4.1 Allocation for 2022
The Committee was informed that for
the 2022 fiscal year, a total amount of
two billion, six hundred million, eight
hundred and two thousand, two hundred
and seventy-five Ghana cedis
(GH₵2,600,802,275) was allocated to the GETFund for the following
programme of activities.
Table 1: Activity allocation for 2022
Item Amount (GH₵'000)
1 Debt Services 1,017,743
2 Shortfall recovery 23,724
3 Tertiary Education 546,000
4 Second Cycle Education 496,592
5 Basic Education 325,800
6 Others 151,069
7 Members of Parliament 39,875
TOTAL 2,600, 802
Out of this amount approved by
Parliament, the actual amount released
(accrued) was one billion, nine hundred
and eighty-one million, one hundred and
twelve thousand Ghana cedis
(GH₵1,981,112,000), giving a shortfall of six hundred and nineteen million, six
hundred and ninety thousand Ghana
cedis (GH₵619,690,000).
4.2 Revenues for 2022
The Committee observed that the Fund
has two main sources of revenue. These
are:
i. Budgetary Allocation for the year; and
ii. Proceeds from Daakye Bond.
During the year under review, a
total amount of one billion, one
hundred million Ghana cedis
(GH₵1,100,000,000) was projected to accrue from the Daakye Bond.
However, GH₵914 million was released. Thus, total inflows for the
year 2022 amounted to GH₵2,728 billion. This is made up of:
i. Amount received from budgetary allocation GH₵1,814,476,383.30
ii. Amount received from Daakye Bond proceeds
GH₵913,663,971.70
4.3 Programmes and Projects
Undertaken in 2022
For the year 2022, GETFund
undertook a number of projects. Some of
the projects and programmes, which are
at various stages of completion, include:
• Construction and completion of academic facilities in the various
public tertiary institutions;
• Construction and rehabilitation of dormitories, classrooms, dining
halls and other facilities at various
senior high schools;
• Supply of classroom furniture as well as beds and mattresses to
various schools; and
• Sponsorship of students to pursue various programmes both locally
and abroad.
4.4 Scholarships
For the year 2022, the following
scholarships were awarded to eligible
applicants to pursue their studies in
various institutions locally. No
scholarships were awarded for students
to study abroad due to budgetary
constraints. Table 2 shows the
scholarships awarded in 2022.
Table 2: Scholarships Awarded in 2022
Programme Category Local Foreign Total
Doctorate 239 239
Masters 1,262 1,262
Undergraduate 1,337 1,337
Others 105 105
Total 2,704 2,704
5.0 Allocation for 2023
For the fiscal year 2023, an amount of one billion, eight hundred and sixty-nine
million, five hundred and sixty-three thousand, two hundred and eighty-one Ghana cedis
(GH₵1,869,563,281) was allocated to the Fund, a reduction of over 28 per cent compared to that of 2022.
5.1 Sub-Sectoral Allocation
5.1.1 Tertiary
For the period under review, the tertiary sub-sector has been allocated 7.84 per cent
(GH₵170 million) of total expected inflow from the national budget for 2023 to support a range of activities and interventions.
5.1.2 Secondary Education
For the year 2023, this sub-sector has also been allocated 28.44 per cent (GH₵617 million) of total spending from the budget.
5.1.3 Basic Education
A total allocation of GH₵88.5 million (4.08 per cent) has been made for funding various projects and programmes in basic education mostly for the procurement of basic
education textbooks.
5.1.4 Others
A total of GH₵97.54 million (4.5 per cent) has also been allocated to the Ministry of Education and institutions and agencies within the education sector. This includes
allocations for GETFund operations, Youth Employment Agency, and the Scholarship
Secretariat.
5.1.5 MP's Emergency Projects and Monitoring
It is proposed that Hon Members of Parliament will receive support from the Fund to
enable them undertake projects in their constituencies and, also, monitor projects in their
various constituencies. For this year, an amount of thirty-one million, six hundred and
twenty-five thousand Ghana cedis (GH₵31,625,000), representing 1.46 per cent of total spending, has been allocated for that purpose.
6.0 Observations
6.1 Abandoned Projects
The Committee observed that in 2022, the Fund put in place a three-year project aimed
at completing all of its abandoned projects. As of 31st December, 2022, a total of 2,405
projects had been completed during the period under review. These projects were
financed mainly from the disbursements of the bond proceeds and the enhanced
monitoring activities undertaken. Details of the completed projects are detailed in Table
3 below:
Table 3: Completed Projects as at 31st December, 2022
SUB SECTOR PRE 2017 2017 TO DATE TOTAL
Tertiary 159 0 159
Second Cycle 535 519 1,054
E-Blocks 22 14 36
Model Schools - 2 2
TVET Centres - 2 2
Basic 729 423 1,152
Total 1,344 913 2,405
The Committee commends the Fund
and urges it to take steps to complete all
outstanding projects.
6.2 Current Status of the Fund's Bonds after the DDEP
The Committee was informed that out
of a total amount of
GH₵2,622,531,961.00 being the total bonds in the register, a total amount of
GH₵1,358,016,281.00 has been exchanged leaving total outstanding
bonds of GH₵1,264,515,680.00. The Fund informed the Committee that the
remaining bonds outstanding are
expected to be exchanged within the
shortest possible time.
The Committee was, however,
informed that the ambitious goal of
completing abandoned projects,
therefore, cannot be achieved within the
three-year time frame. Cost escalation,
as a result of rapid increase in prices due
to the depreciation of the cedi against the
major foreign currencies, coupled with
high interest rates, continue to impact
negatively on project costs. The Board
will, however, continue to allocate funds
towards completion of these projects.
6.3 Pending Committed Projects
The Committee was informed that the
Fund has a total amount of
GH₵619,690,000 being the sum required for pending projects to which
contract was either awarded or
committed. Marked and attached as
Appendix 1 is the breakdown of the 2022
pending commitments.
The Fund informed the Committee that
insufficient funding is adversely
affecting its efforts to complete its
programmes and projects across the
country. The Fund, therefore, requested
Parliament to urge the Ministry of
Finance to make more resources
available to the Fund to complete its
programmes and projects.
6.4 Debt Service Account
The Committee observed that a total
amount of GH₵545,202,000 was
allocated for the servicing of the Daakye
Bonds issued by the Fund for 2023.
The Committee noted that as part of the
Debt Restructuring Programme, as
agreed with the IMF, the Daakye Bonds
has now been classified as a public debt
and now forms part of the Government
of Ghana debts. As a result, the
GETFund is no longer responsible for
the service of the debt and, therefore,
ought not to be a part of activities for the
Fund for 2023.
6.5 No Allocation to Key
Programmes of the Fund
The Committee observed that there
were no allocations made to a number of
programmes and activities of the Fund
for the year 2023. Projects such as
completion of on-going tertiary projects,
completion of on-going SHS projects,
new SHS targeted and emergency
projects, completion of community day
SHS, rehabilitation of dilapidated
structures, among others had no
allocation.
The Committee raised concern about
the lack of allocation to these
programmes and projects and urged the
Fund, as a matter of urgency, to make the
necessary allocation for them.
6.6 Recovery of Shortfall for 2022
The Committee observed that under
the proposed distribution formula, a total
amount of GH₵619,690,000.00 has been earmarked as recovery of 2022 shortfall.
The Fund explained that this amount is in
respect of 2022 arrears, which, when
released, would be used to clear all
outstanding commitments.
6.7 Digitalisation of Teaching and
Learning Systems
The Committee observed that a total
amount of GH₵550 million was provided under the distribution formula
for 2023 for the digitalisation of teaching
and learning systems for SHS and
Technical and Vocational Education and
Training (TVET) students.
The Fund informed the Committee that
this entails the provision of tablets fully
loaded with all recommended e-
textbooks, the full syllabus, past
questions and examiner reports as well as
other teaching aids. The goal of the
programme is intentioned to reduce the
cost of procuring textbooks and to
prepare students for the ICT-driven
world. The tablets are cloud-based,
making it easy for updates to be effected
and come with solar packs to enable easy
charging irrespective of location.
6.8 Allocation to Members of
Parliament for Monitoring and
Emergency Projects
The Committee observed that a total
amount of GH₵31,625,000.00 was allocated to Hon Members of Parliament
for monitoring and emergency projects.
The Committee further observed that this
amount is woefully inadequate as it even
falls short of the allocation for 2022
which amounted to GH₵39,875,000.00.
The Committee urged the Fund to
make more allocation to the Members of
Parliament to enable them effectively
undertake the monitoring and emergency
projects.
6.8 Funding Gap
The Committee observed that for the
year 2023, a total amount of
GH₵1,869,563,000 was allocated to the Fund in the 2023 Budget Statement
presented to the House and approved by
Parliament. The Committee further
noted that the total cost of the
programmes and activities contained in
the proposed distribution formula
amounts to GH₵2,169,563,000, leaving a short fall of GH₵300,000,000.00.
The Fund informed the Committee that
it engaged the Ministry of Finance over
the issue and that the Fund has been
assured that an amount of
GH₵300,000,000.00 would be provided to the Fund to meet the gap.
7.0 Recommendation
After carefully considering the
Proposed Distribution Formula for the
2022 fiscal year, the Committee
recommends that the allocation provided
for the Debt Service Account, amounting
to GH₵545,202,000.00, be taken out as same has already been included in the
public debt of the country under the Debt
Restructuring Programme.
The Committee, with the Fund, has
accordingly revised the Distribution
Formula for the year 2023. Attached as
Appendix 2 is a copy of the revised
Distribution Formula for the year 2023.
8.0 Conclusion
The Committee, having carefully
examined the distributed formula of
expected inflows into the Fund for 2023,
notes that the formula takes into account
the promotion of TVETs, completion of
SHS projects, provision of basic schools,
promotion of computer studies and
technical education, among others.
The Committee, accordingly,
recommends to the House to adopt its
Report and approve the Proposed
Formula for the Distribution of
GETFund for 2023 in respect of the
amount of GH₵1,869,563,000.00 as amended.
Respectfully submitted.