Ensure High Compliance to PRMA Provisions on Allocations to Heritage Fund-Policy Analyst

A Policy Analyst at Penplusbytes, Mr. Gideon Ofosu-Peasah has recommended to the Minister of Finance, the Investment Advisory Board and successive boards to ensure high compliance to the PRMA provisions on allocations to the Ghana Heritage Fund so as not to short-change future generations.

This is contained in a research publication by Penplusbytes (Reporting Oil and Gas) released in October,2017 on the performance of the Ghana Heritage Fund .The findings reveals a non-compliance with provisions made in the PRMA on revenue allocations to the Ghana Petroleum Fund.

On Outflows of Petroleum Revenues:

Section 18 (1) of the PRMA prescribes for not more than 70% of petroleum revenues be allocated into the ABFA whiles section 23(b) also directs a minimum of 30% be allocated into the GPF. Quoted below;

18. (1) The Annual Budget Funding Amount from petroleum revenue shall not be more than seventy percent of the Benchmark Revenue
19. (1) Commencing in the year 2011 until the year when petroleum production ceases, the following rules shall apply….. (b) a minimum of thirty percent of the excess revenue determined in subsection (1) (a ) shall be transferred into the Ghana Heritage Fund and the balance shall be transferred into the Ghana Stabilization Fund each quarter. (PRMA 2011)

Reconciling the above provisions to the allocation made since 2011, there is evidence that, the minimum 30% prescription was not met in 2011,2012,2015 and 2016.

For details of the research work,please visit http://www.reportingoilandgas.org/rog-publications/mapping-ghanas-oil-and-gas-revenue-to-expenditure-the-case-of-the-heritage-fund/