Parliament has approved the Supplementary Appropriation Bill 2020 to legalise government’s decision to spend GH¢6.37 billion more than it had approved for the 2019 fiscal year.
Out of the amount, GH¢5.1 billion was used to make payments to Independent Power Producers and Related parties.
According to a report by Parliament’s Finance Committee, the extra expenditure became necessary as a result of liabilities in the energy sector in respect of take-or-pay contract obligations with independent power producer.
The rest of the funds were applied towards interest payments as well as an upward adjustment in goods and services expenditure for the 2019 financial year.
In December 2018, Parliament approved the Appropriation Bill to allow for government to spend GH¢73 billion in the 2019 fiscal year.
On July 29, 2019, the Finance Minister briefed Parliament that government will spend GH¢6.37 billion more for the purpose of providing additional financing to pay for the fore-mentioned expenditures.
The Supplementary Appropriation Bill 2020 approved on Friday evening provides legal backing for the additional withdrawal of sums from the consolidated fund to meet those expenditures.