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Free tertiary fees for new entrants laudable, but funding may be a challenge – GNAT
The General Secretary of the Ghana National Association of Teachers (GNAT), Thomas Musah, has welcomed the proposal to cover academic user fees for first-year tertiary students but has expressed concern about sustainability.
While he acknowledges the benefits of easing the financial burden on students and parents, he warns that the country’s stretched education budget may not be able to bear the weight of such an initiative without careful planning.
Speaking on JoyNews’ AM Show, he recognised the proposal by Haruna Iddrisu, the Minister of Education nominee, as a step in the right direction, offering much-needed support for new students.
However, he stressed that while the idea is commendable, the reality of financing it could pose significant challenges for the already fragile national budget.
“While it’s a great move for students, we need to ask ourselves: how much do we actually have to fund these initiatives?” he asked, underscoring the importance of a sustainable funding strategy.
He highlighted the ongoing financial struggles within the education sector, including arrears owed to the West African Examinations Council (WAEC), unpaid bills to school feeding suppliers, and long-overdue payments to food vendors in Senior High Schools (SHS).
To make matters worse, capitation grants have been in arrears for over two years, raising serious concerns about the government’s ability to meet its educational commitments.
Mr Musah also pointed to the need for a broader, more long-term strategy to secure reliable funding for education in Ghana, something GNAT has long advocated for but has yet to see fully implemented.
Without this, he warned that any effort to support first-year students could be short-lived and add even more strain on the system.
Mr Musah agreed that paying first-year university students’ fees is a positive development, and emphasised that its success hinges on the government’s ability to secure sustainable funding.
“Without a solid financial plan, the initiative could face significant challenges and deepen the financial pressures already plaguing the education sector” he concluded.
Source: Myjoyonline.com
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Over GH₵80m was collected in betting tax, Amin Adam got it wrong – Finance Minister
Ghana’s Minister for Finance Ato Forson says the claim by former Finance Minister Mohammed Amin Adam that the erstwhile administration never implemented the betting tax is not factual.
Speaking at a new conference on Tuesday, March 11, shortly after the Finance Minister presented the new government’s first budget statement and abolished the e-levy, betting tax among others, the former Finance Minister said the NPP government never enforced the controversial tax on lottery and sports betting winnings.
Dr Amin Adam said it was deceptive for the NDC government to claim to abolish a tax that was never collected although the law was passed in 2023.
“Betting tax that they said they have abolished, we never collected Betting Tax. So to come and tell Ghanaians that you have abolished something that you have not implemented, is to deceive the people of Ghana.”
Responding to the claims in an interview with Evans Mensah on JoyNews’ PM Express on Tuesday night, the Finance Minister said his colleague on the other side appears not to be on top of that issue.
“I don’t think he’s on top of that matter because my checks revealed that it was implemented in the second half of 2024. And my checks also reveal that year-to-date, the government of Ghana has collected over GH₵80 million from betting tax, so I don’t know what he’s talking about. It is not the fact. The fact on the ground does not support his assertion. Clearly, the betting tax was implemented,” he insisted.
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Whoever created BoG’s GH₵53bn negative equity mess should be held responsible – Dr. Atuahene
Banking consultant Richmond Atuahene has called for accountability over the Bank of Ghana’s (BoG) GH₵53 billion negative equity, insisting that those responsible for the mess must be held accountable.
In an interview on Joy FM’s Midday News on Wednesday, March 12, he called for those responsible for breaching financial regulations to be summoned before Parliament to explain their actions.
“There was a law that stated they should not exceed a 5% fiscal financing threshold, yet they went as high as 60%. This is a clear violation, and they cannot claim ignorance. The Governor, the Minister, and those involved must be held accountable for their actions,” he asserted
His comment comes after the Finance Minister, Dr. Cassiel Ato Forson, advised BoG to explore internal cost-cutting measures instead of relying on taxpayer funds for a GH₵53 billion bailout to address its negative equity position.
Dr. Atuahene supported the Finance Minister’s stance that the government cannot afford to recapitalise the central bank at this time, given the nation’s fiscal constraints.
“Like the Minister said, you don’t create a mess and leave it for others to clean up. Whoever created this mess must take personal responsibility. When they engaged in the monetisation of fiscal deficits in 2021 and 2022, some of us warned them about the consequences, but they didn’t listen,” he stated.
Dr. Atuahene stressed that rather than relying on external funding, the Bank of Ghana should explore internal restructuring, cost-cutting, and asset sales, including a sale-leaseback arrangement on some of its properties, to raise the necessary capital.
He also highlighted the potential damage to Ghana’s international credibility if the Bank of Ghana remains in a financially distressed position.
“This affects Ghana’s credibility. BoG has correspondent relationships with the Bank of England, the Federal Reserve, and the African Development Bank. If it continues to operate in a capital-deficient state, international institutions may lose confidence in our financial system,” he warned.
Dr. Atuahene also criticised the central bank for insisting that it is “policy solvent,” arguing that capital solvency is more critical in this situation.
“You can claim policy solvency all you want, but if you are capital insolvent, it means you cannot function properly. BoG has been making losses year after year. They made losses in 2023, and they are making losses in 2024. How long will this continue?” he questioned.
Source: Myjoyonline.com
