Question
a. Given below are the revenues of government for the second half of year 2018 Dividend Gift Tax Import Duty PAYE Company Tax Loans Fees
a. Given below are the revenues of government for the second half of year 2018
Dividend | Gift Tax | Import Duty | PAYE | Company Tax | Loans | Fees & Charges | Total Revenue | |
GHS'000 | GHS'000 | GHS'000 | GHS'000 | GHS'000 | GHS'000 | GHS'000 | GHS'000 | |
July | 5,000 | 500 | 10,000 | 12,500 | 95,000 | 100,000 | 3,000 | 226,000 |
August | 2,200 | - | 12,000 | 12,600 | 65,000 | - | 7,000 | 99,100 |
September | 3,600 | - | 6,000 | 11,400 | 65,000 | 20,000 | 6,000 | 112,000 |
October | 2,200 | 1,500 | 5,500 | 10,800 | 78,000 | 320,000 | 5,000 | 423,000 |
November | 2,200 | 500 | 12,500 | 16,000 | 69,000 | - | 6,800 | 107,000 |
December | 12,500 | 100 | 15,600 | 19,000 | 110,000 | 140,000 | 4,600 | 301,800 |
28,000 | 2,600 | 61,600 | 82,300 | 482,000 | 580,000 | 32,400 | 1,268,900 |
The Controller and Accountant General is mandated to transfer as least 5%) of the total revenue to the District Assembly Common Fund on quarterly basis for onward distribution to all the Metropolitan, Municipal and District assemblies (MMDAs)
The District Assembly Common Fund Administrator upon the receipt of the transfers from the Controller and Accountant General, disburses 90% of the fund to the MMDAs based on a formula approved as a follows:
Factor | Weight (%) |
Needs | 40 |
Responsiveness | 10 |
Service pressure | 20 |
Equalization | 30 |
100 |
Assuming that there are thirty assemblies in Ghana, three of them are; Accra Metropolitan Assembly (AMA), Kumasi Metropolitan Assembly (KMA) and Tamale Metropolitan Assembly (TMA). Below is the factor analysis result of the all assemblies in the country
Factor | AMA | KMA | TMA | Others | Total |
Needs | 2 | 3 | 5 | 20 | 30 |
Responsiveness | 3 | 4 | 3 | 30 | 40 |
Service pressure | 5 | 3 | 2 | 20 | 30 |
Equalization | 1 | 1 | 1 | 27 | 30 |
Required:
- Compute the amount to be transferred to the District Assembly Common Fund for the fourth quarter of 2018 in accordance with the provisions of the District Assembly Common Fund Act 1993 (Act 455), using the current rate of 5.0%
- Prepare a statement of distribution of the District Assembly Common Fund to the three assemblies (AMA, KMA and TMA) for the fourth quarter based on the approved sharing formula.
- Outline the main functions of the District Assembly Common Fund Administrator in accordance with the District Assembly Common Fund 1993, (455)
- To what extent can it be that the DACF has helped to improve the finances, and for that matter, the development efforts of the MMDAs.
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