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- 5 Marks
Question
In accordance with Article 175 of the Constitution of the Republic of Ghana, the Public Funds of Ghana consist of the Consolidated Fund, Contingency Fund, and such Other Funds as may be established by or under the authority of an Act of Parliament. Other Funds established by or under the authority of an Act of Parliament include the District Assembly Common Fund (DACF) and the Petroleum Holding Fund (PHF).
Required:
With respect to each fund (DACF and PHF), outline THREE (3) sources of income.
Answer
Sources of Income for DACF:
- 2.5% of VAT:
A statutory transfer of 2.5% of Value Added Tax (VAT) receipts is made to the DACF monthly. - Other Moneys Allocated by Parliament:
Parliament may allocate other funds to the DACF as necessary, in addition to the statutory transfer. - Donations, Grants, and Gifts:
The DACF can receive income from donations, grants, and gifts from various sources, both domestic and international.
Sources of Income for PHF:
- Royalties from Oil and Gas:
Royalties paid by oil and gas companies operating in Ghana are a primary source of income for the PHF. - Revenues from Direct or Indirect Participation:
Revenues derived from the government’s direct or indirect participation in petroleum operations, including state-owned enterprise (SOE) shares, contribute to the PHF. - Corporate Income Taxes:
Taxes levied on the profits of upstream and midstream petroleum companies operating in Ghana are also a significant source of revenue for the PHF.
- Tags: DACF, PHF, Public Finance, Public Funds, Revenue Sources
- Level: Level 2
- Topic: Public sector financing initiatives
- Series: JULY 2023
- Uploader: Theophilus