The Ghana Road Fund is currently facing a debt of over GH¢6 billion owed to contractors, a result of limited inflows caused by the capping law.
Enacted in 2017, this law restricts the allocation of funds to various statutory funds to a maximum of 25% of tax revenue.
During the launch of a road maintenance app, Frank Annoh-Dompreh, Chairman of the Road Fund, emphasized the need for the fund to be exempted from the capping law.
Annoh-Dompreh highlighted the severe financial strain caused by the current limitations, stating, “The fund isn’t doing too well, with a debt exceeding GH¢6 billion to contractors for executed works, while the capping act restricts revenue from inflows.”
He expressed his intention to engage with the Ministry of Finance and the Cabinet to consider exempting the Road Fund from the Earmarked Funds Capping and Realignment Act 2017 (Act 947).
This exemption would provide more funds to support road maintenance initiatives and settle debts to contractors, allowing them to continue their work on the roads.
