Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697740388853.pdf (Ghana)
( Ghana Education Trust Fond (GETFund) 42n(j 4th Close, Airport Residential Area, Accra, P, O.

Box MB 254, Accra, Ghana Tel: (233) 0544 323 020, 027 0762558 E-mail: infoiggelfund.gov.gh website: www,getfund,gov,gh Our Ref: 3-'!

'u:'V23 Your Ref: 13 .imiit.

2023 Rt.
Hon, Sitcakei of Parliament Office of Pai'liameiit Accra f'h rou<;h, The Hon tViir.ister Ministrv of Education 7\ctra Dear Sir GKTf UNO i^ISTRJFrlJTION FORMULA FOR FISCAL YEAR 2023 It is our honotir and privilege, to submit, on behalf of the Board of irustees of the cih-ma Ediivalion liiist Fund (GEtTFund) the attached Distribution Formula of monies expected lo accrue to t:ie Glr I'Fund for the year 2023. and 'I'oial expeetctl iiiHows for the year as projeeled in the 2023 Budget Statement i,s One Billion, Eight Hiindrcd and Sixty-Nine Million, Five Hundred and Sixty-Thrcc Thousand, Two addilimia!
Hundred ('Jhcjl.

'tt,00(1,000 (Three Hundred Million Ghana Cedis) in deficit llnancing from litc Ministry of Finance, 'fhe total amount disbursed is.
therefore, Ghtl2,169,563,281 (Two Billion, One Hundred and Sixty-Nine Million, Five Hundred and Sixty-Three Thoiusaiul, Two Hundred and Eiglity-Onc Glvana Cedis) (Ghcl,86y,563,281) Eiglity-Onc Ghana Cedis and an We leoaesl ihe Kind approval of the Di.stribution Formula by this august (louse to facilitate the lelcasc and application of funds to Ihe ci iticai and strategic areas of the Education Seeicr iti accordance witli the provision(s) of the GETFund Act, 2000 Act 581.
W'e are connjenl that I’arliament will be able to give approval lo the Formula.

Sincerclv „ (A ./● tC Dr. Richard A. Boadu Admiiii.stratur line GETFUND DISTRIBUTION FORMULA FOR FISCAL YEAR 2023 1.0 Background The Ghana Education Trust Fund (GETFund) Act, 2000 Act 581 Section 8 provides that: (1) “There shall be established by the Board within the Fund accounts in respect of the following: a.
Tertiary Education b. Second-cycle Education c. Basic Education d. Investment e. Other related aspects of education such as distance education, school and public libraries and special education.
(2) The Board shall submit annually to Parliament for approval a formula for the distribution of monies to the various accounts under subsection (1) to design and submit proposals allocating funds to the Sub-Sectors, Agencies and Institutions within the Public Education Sector through the mechanism of a Distribution Formula for consideration and approval by Parliament.
The Law further stipulates that some crucial factors related to Education delivery and development are taken into account in the process of preparing this Formula.
These relevant factors are: ● ● ● ● ● promotion of the study of Mathematics, Science and Technology; advancement of female education; reduction in the high level of illiteracy in historically disadvantaged areas; promotion of Computer, Vocational/Technical Education and Training; equitable allocation of funds to the Districts at the Pre-Tertiary level of education.
All of these Sub-Sectors, together with the related critical factors received consideration and attention in the process of designing this Formula.

In this regard therefore, the structure of spending has been calibrated to support and achieve the following: ● ● ● expansion of access; improvement of quality; and closing of those social and spatial gaps that tend to generate inequities in the Education Sector, especially at the pre-tertiary level and, also in deprived and hard to reach communities.
are made based on the Government’s Annual Budget Funding allocations Statement and Economic Policy approved by Parliament for each fiscal year.

This allocation is made in accordance witli the GETFund Act 2000, Act 581 as amended by Act 972, and the Earmarked Funds Capping and Realignment Act 2017, Act 947.
1.2 2022 Performance Review 1.2.1 GETFund Levy Mr. Chairman, an amount of Two Billion, Six Hundred Million, Eight Hundred and Two Thousand, Two Hundred and Seventy-Five Ghana Cedis (Ghji2,600,802,275) was allocated to the GETFund for the 2022 fiscal year.
Mr. Chairman, out of this amount approved by Parliment, the actual amount released (accrued) was One Billion, Nine Hundred and Eighty-One Million, One Hundred and Twelve Thousand Ghana Cedis (Gh^l,981,112,000) giving a shortfall of Six Hundred and Nineteen Million, Six Hundred and Ninety Thousand Ghana Cedis (Gh^619,690,000).

Table 1 shows details of amounts received during the year.

2 Table 1.
2 Table 1.

Status of 2022 Releases From CAGD PERIOD AMOUNT DUE AMOUNT AMOUNT RECEIVED OUTSTANDING 2016 Balance B/F 57,425,808.00 57,425,808.00 2021 Balance B/F 747,783,206.00 747,783,206.00 2022 Actual 1,981,112,045.00 1,066,693,177.30 914,418,867.70 TOTAL 2,786,321,059.00 1,814,476,383.30 971,844,675.70 A total amount of One Billion, Eight Hundred and Fourteen million.
Four Hundred and Seventy-Six Thousand, Three Hundred and Eighty-Three Ghana Cedis, Thirty Peswas (Gh^l,814,476,383.30) was received in the 2022 fiscal year as shown above in table 1.

Out of this amount, only Seven Hundred and Ninety Million Ghana Cedis (Gh^790,000,000) was transferred to GETFund bank account.

The rest was in respect of debt service.


1.2.2 Proceeds From Bond Programme An amount of One Billion, One Hundred Million Ghana Cedis (Gh^l,100,000,000) was projected to accrue from the Daakye Bond Programme to provide additional funds during the year 2022 Inflows from Daakye bonds amounted to Gh^914 million bringing total inflows for the year to Gh^2,728 billion as per the breakdown below: ].

11.
11.

Amount received from budgetary allocation Gh^l,814,476,383.30 Amount received from Daakye Bond Proceeds Ghj^913,663,971.70 One of the major strategies of the 2022 Distribution Formula was the completion of on-going projects within the various sub sectors of Education across the country.

This could not be fulfilled because of the funding challenges faced during the year.

3 1.2.3 Disbursement of Funds The combined amount of Gh^2,728 billion was disbursed as shown in table 2. below.

Table 2.
Table 2.

Summary of Disbursement as at 31^* December 2022 SECTOR BOND LEVY TOTAL Debt Service Tertiary Second Cycle Basic Others GETFund Admin.

1,066,693,177.56 213,061,926.03 332,721,577.47 104,793,682.81 65,334,587.38 52,424,173.00 221,700,341.42 618,244,902.42 73,718,727.86 Total 1,813,029,124.25 913,663,971.70 1,066,693,177.56 432,762,267.45 930,966,479.89 178,512,410.67 65,334,587.38 52,424,173.00 2,726,693,095.95 Table 3 below shows total outstanding liabilities as at 3D‘ December 2022 Table 3.
Liabilities Old Projects New Projects Total Tertiary 91,276,066 Second Cycle 164,347,726 Basic 63,692,710 Others 106,164,406 Total 425,480,909 37,960,235 180,980,381 91,276,066 202,307,962 244,673,380 449,405 106,613,811 219,390,311 644,871,220 For the year 2022, some of the projects and programmes funded and which are at various stages of completion include: ● Construction and completion of academic facilities in the various public ● ● ● tertiary institutions; Construction and rehabilitation of Dormitories, Classrooms, Dining Halls and other facilities at various Senior High Schools; Supply of classroom furniture as well as beds and mattresses to various schools; Sponsorship of students to pursue various programmes both locally and abroad.
4 1.2.4 Projects A total of 2,405 projects were completed by 3December 2022 as shown in table 4 below.

Tills was made possible as a result of the disbursements of the bond proceeds and the enhanced monitoring activities undertaken.
Table 4: Completed Projects as at 3P‘ December 2022 SUB SECTOR PRE 2017 2017 TO DATE TOTAL Tertiary Second Cycle E-Blocks Model Schools TVET Centers Basic Total 1.2.5 Scholarships 159 535 22 729 1,344 0 519 14 2 2 423 913 159 1,054 36 2 2 1,152 2,405 For the year 2022 the following scholarships were awarded to eligible applicants to pursue their studies in various institutions locally.

No scholarships were awarded for students to study abroad due to budgetary constraints.
Please find details in the table below.

Table 5: Scholarships Awarded in 2022 Programme Category Doctorate Masters Undergraduate Others Total Local Foreign Total 239 1,262 1,337 105 2,704 239 1,262 1,337 105 2,704 5 2.0.

FISCAL YEAR 2023 For the fiscal year 2023, an amount of One Billion, Eight Hundred and Sixty- Nine Million, Five Hundred and Sixty-Three Thousand, Two Hundred and Eighty-One Ghana Cedis (Gh01,869,563,281) was allocated to the Fund, a reduction of over 28% compared to that of 2022.
However, an additional amount of Gh^300,000,000 is expected to be made available through the realignment of funds to execute Government policy mainly at the second cycle level.

This brings the total amount disbursed to Gh^2,169,563,281.

The structure of spending in this Formula is aligned to the Education Sector Priority Projects and Programmes.
Before distributing funds to the various sub-sectors, a provision of Ghjf545,202,000 or 25.13% of total spending is made for the servicing of debt (Bond Programme Gh^463,730,000 and Syndicated Loans residue Gh^81,472,000).

This allocation takes account of a downward revision of the receivables assignment which reduces the Daakye debt service commitment from Gh^l,112,960,392 to Gh^463,730,000 for 2023 on account of the DomesticDebt ExchangeProgramme(DDEP).
Mr. Chairman,commitmentsarising from the 2022 DistributionFormula approved by Parliament but which could not be realized (revenue shortfall) amounting to Gh^619.69 million (representing 28.56% of budget) has been catered for before the distribution of funds.

Details can be found on appendix iii.

Mr. Chairman, the Board in 2022 took a bold decision to taclde the problem of uncompleted projects dotted around the country across the various subsectors of education.
The target was to achieve 80% completion rate in three years.

This was to be achieved through a funding mix of bonds and GETFund Levy allocations.

Mr. Chairman, the Domestic Debt Exchange Programme (DDEP) undertaken by Government has effectively truncated the Daakye Bond Programme which provided additional funds for infrastructure development.

Table 6 shows the current status of the bonds outstanding after the DDEP.

6 Table 6.
6 Table 6.

Bonds Outstanding Company Daakye Trust Pic Percentage (%) Total Bonds in Register GW 2,622,531,961.00 100 Bonds Outstanding Total Exchanged Gh^ 1,358,016,281.00 51.78 Bonds Gh^ 1,264,515,680.00 48.22 The remaining bonds outstanding are expected to be exchanged within the shortest possible time.

The ambitious goal of completing abandoned projects therefore cannot be achieved within the three year time frame.
Cost escalation as a result of rapid increase in prices due to the depreciation of the Cedi against the major foreign currencies coupled with high interest rates continue to impact negatively on project costs.

The Board will however, continue to allocate funds towards completion of these projects.
Appendix ii shows the total commitments of the Fund amounting to Gh^6.784 billion as well as the amount contained in the Formula of Gh^SOO million even though actual amount required for 2023 commitments is Gh^3.028 billion 2.1.

SIJB-SECTORAL ALLOCATION 2.1.1 Tertiary Tertiary Sub-Sector has been allocated 7.84% (Gh^fl70 million) of total expected inflow from the National Budget for 2023 to support a range of activities and interventions.
This is in addition to Gh<f346.7 million captured within the 2022 shortfall detailed in Appendix iii.

Mr. Chairman, to cater for continuing students under the GETFund scholarship and the award of new sponsorships for students to pursue various programmes locally, an amount of Gh^75 million has been allocated for 2023.

The details of tertiary allocations can be found on appendix I, 7 2.1.2 Secondary Education This Sub-Sector has also been allocated 28.44% (Gh^617 million) of total spending from the budget.
An additional amount of Gh^97.39 million will be spent from the 2022 shortfall amount detailed in Appendix iii Mr. Chairman, of particular significance is the allocation of 25.35% or Ghp550 million for the digitilisation of teaching and learning systems for SHS and TVET students.

This entails the provision of tablets fully loaded with all recommended e-textbooks, the full syllabus, past questions and examiner reports as well as other teaching aids.
The intention is to reduce the cost of procuring textbooks and to prepare students for the ICT driven world.

These tablets are cloud based making it easy for updates to be effected and come with solar pack to enable easy charging irrespective of location.

Details of second cycle allocations can be found in appendix I.
2.1.3 Basic Education A total allocation of 4.08% (Gh^88.5 million) of total projected spending from the budget has been made for funding various projects and programs in Basic Education mostly for the procurement of Basic Education textbooks.
An additional amount of Gh^l31.2 million of spending is expected from the 2022 shortfall recovery outlined in Appendix iii 2.1.4 Others A total of 4.5% (Gh^97.54 million) of total projected spending has been allocated to the Ministry of Education and Institutions and Agencies within the Education Sector.

This includes allocations for the GETFund operations, Youth Employment Agency, and the Scholarship Secretariat.
An amount of Gh^!39.3 million oftlie 2022 commitmentsas detailed in Appendix iii will also be spent this fiscal year.

2.1.5 MP’s Emergency Projects and Monitoring It is proposed that members of Parliament will receive support from the Fund to enable them undertake projects in their constituencies and, also, monitor projects in their various constituencies.
For this year, an amount of Thirty-One Million, Six Hundred and Twenty-Five Thousand Ghana Cedis (Gh^31,625,000) representing 1.46% of total spending has been allocated for that pmpose.
The specifics are: - An allocation of One Hundred Thousand Cedis (Gh^70,000) per member of Parliament for tlte funding of Education-related projects in their constituencies, amounting to Nineteen Million, Two Hundred and Fifty Thousand Ghana Cedis {Gh^l9,250,000); and An allocation of Forty-Five Thousand Ghana Cedis (Gh ^45,000) per Member of Parliament for monitoring of these projects, amounting to Twelve Million, Three Hundred and Seventy-Five Thousand Ghana Cedis (Gh012,375,OOO).
The total amount distributed is Two Billion, One Hundred and Sixty Nine Million, Five Hundred and Sixty-Three Thousand Ghana Cedis (Gh^2,169,563,000), giving a deficit of Three Hundred Million Ghana Cedis (Gh^300,000,000).

The Minister for Finance committed to providing this amount at a meeting with the Minister of Education and the GETFund Administrator on Wednesday, T'" June 2023.

It is on the basis of this understanding that we present this formula to the House.

9 3.0.
9 3.0.

CONCLUSION In conclusion the Board would like to express its profound gratitude to Honourable members for the support given over the years.

It is hoped that the cordial relationship between the Fund and this August House will get stronger and better.

Mr. Chairman, I wish, therefore, to kindly request this Honourable House to approve the Distribution Formula for the Fiscal year 2023 as presented.

Thank you.
Dr. Richard A. Boadu Administrator 10 DISTRIBUTION FORMULA - GETFUND 2023 APPENDIX I Revenue Allocation from MOF SUB-SECTOR ALLOCATION LONG TERM LOAN FACILITY Debt Service Account 2023 (GH0‘ 000) 1,869,563 % 2022 000) 2,600,802 % 545,202 545,202 25,13 25.13 1,017,743 1,017,743 39.13 39.13 SHORTFALL RECOVERY Recovery of 2022 shortfall Recovery of Discount on MOF Release Through Bond TERTIARY EDUCATION Completion of Tertiary On going Projects Academic Facilities & Infrastructure - Priority/New Upgrade of TVET Workshops - Technical Universities Scholarships Students Loarr Trust Faculty Development & Research innovation Fund Special Interventions ● 46 Hostels in Colleges of Education Special Interventions - 5 Hostels /SPI Sub-total 619,690 28.56 619,690 28.56 35,000 1.61 75,000 15,000 10,000 20,000 15,000 170,000 3.46 0.69 0.46 0.92 0.69 7.84 SECOND CYCLE EDUCATION Completion of SHS On going Projects New SHS Targeted & Emergency Projects, Completion of Community Day SHS Rehabilitatior^ of Dilapidated Structures Model Schools SHS Laboratory Equipment Motor Vehicles - Exchange Difference TVET Centres Furniture for SHS Other Structures Furniture for SHS - Model Schools 30,000 5,000 25,002 7,000 1.38 0.23 1.15 0.32 Fencing of SHS BoheholesforSHS Science Technology Engineering & Mathematics (STEM)/AIMS/IEPA Laptops for Teachers Special SHS7TVET Digiialisationflnnovation) Programme Second Cycle Contingencies Sub-total 617,002 550,000 25.35 BASIC EDUCATION Ongoing Basic School Projects New Basic School Projects Construction of KG Classrooms Textbooks Furniture for Basic Schools ICTin Early Childhood Education White Boards for Basic Schools Laptops For Teachers Fencing of Schools Water and sanitation for Schools (Boreholes & Toilets) Institutions of the Handicapped Rehabilitation of Dilapidated Structures Promotion of French Special Programs to promote Girl Child Education and Mat Basic Education Contingencies including Communication Sub-total OTHERS MOE and Subvented Agencies Scholarship Secretatriat Construction of GETFund Office Building GETFund Operational and Monitoring Costs Youth Employment Agency Investment Contingencies Sub-total MEMBERS OF PARLIAMENT MPs Emergency Projects MPs Monitoring Sub-total GRAND TOTAL FUNDING GAP 85,000 3.92 20,000 8,000 30,000 — (300,00^ 1.15 0.27 0.65 2.12 1.23 0.25 0.14 5.81 1.06 0.47 1.53 APPENDIX II.
COMMITMENTS ITEM DETAILS JMTS/NO TOTAL 2023 2023 COMMITMENT COMMITMENT DF PROV.
i lA Completion of on-going projects: Tertiaiy - General Hostels - COE Hostels - Special Intervention IB Second Cycle - General E-BIocks Model schools 1C Basic 2 Special SHS/TVET Digitalisation (Innovation) Programme 3 TLMS (Basic) Textbooks TVET Equipment 4 5 TVET Centres 6 Price fluctuation on Motor Vehicles 7 SHS Laboratoiy Equipment 8 ICT into Early Childhood Education Students Loan Trust Fund 9 10 Scholarships TOTAL 370 46 5 758,423,256 598,000,000 228,800,000 1,484 1,479,373,615 38 9 1,841 450,000 Various Various 3 Various APPENDIX HI BREAKDOWN OF 2022 SHORTFALL 2022 (PENDING COMMITMENT) SUB-SECTORS 2022 Allocation IN 2022 (COMMITMENT) (GHg'OOO) (GH^‘ 000) (GHji' OOP) UTILIZED REQUIRED IN 2023 TERTIARY EDUCATION Completion of Tertiary On going Projects Academic Faciiities & infrastructure - Priority/New Upgrade of TVET Workshops - Technicai Universities Schoiarships Students Loan Trust Facuity Deveiopment & Research Speciai interventions Sub-total SECOND CYCLE EDUCATiON Completion of Community Day SHS New SHS Targeted & Emergency Projects; BohehoiesforSHS Sub-totai BASIC EDUCATION Completion of SHS Ongoing Projects New Basic School Projects Construction of KG Classrooms Water and sanitation for Schools (Boreholes & Toilets) Sub-total OTHERS MOE and Subvented Agencies Youth Employment Agency Sub-total Committed Contract Awarded Contract Awarded Committed Committed Committed Contract Awarded 34,890.50 Contracts awarded Committed Contracts awarded Contracts awarded Committed Committed Members of Parliament 39,875 34,800 5,075 Committed GRAND TOTAL 619,690