The Public Interest and Accountability Committee (PIAC) has called for renewed efforts to rebuild the Ghana Stabilisation Fund to help strengthen Ghana’s economic resilience.
According to PIAC, two key sovereign wealth funds were established under the Petroleum Revenue Management Act , that is the Ghana Stabilisation Fund (GSF) and the Ghana Heritage Fund (GHF)
Speaking on the state of Ghana’s petroleum revenue savings in an interview with GhanaWeb Business, PIAC’s Technical Coordinator, Isaac Dwamena said the two main funds have over the years been dormant which is negatively affecting the economy.
He noted that for the past four years, the Ghana Stabilisation Fund has been capped at just US$1 million, a level he described as inadequate, given the fund’s purpose.
“We need to rebuild the Stabilisation Fund to build the nation emphasizing its critical role in cushioning the economy against oil price volatility and fiscal shortfalls. we need to build the fund for the near future to help support the budget,” he added
Meanwhile, the Ghana Stabilisation Fund is primarily intended to support the national budget in times of revenue shortfalls, while the Ghana Heritage Fund serves as a long-term savings tool for future generations.
With this fast becoming a serious concern, PIAC continues to advocate for improved management and transparency in the allocation and use of petroleum revenues to ensure sustainable economic growth.
SP/EB
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