The 2016 budget statement has been presented by the Finance Minister, Hon. Seth Terkper. The 2015 budget is themed “Consolidating progress towards a brighter medium term”.
Ghana Talks Business followed the presentation and we present some highlights in the statement delivered by the finace minister.
Below are the key highlights in the 2016 budget;
We will resist the temptation of election year overspending –
According to Ghana Statistical Service, GDP will grow at 4.7% by the end of 2015.
Our GDP rate for 2015 will be 4.1% instead of the projected 3.9%
The 15year tenure of our bond is the 1st any Sub-Saharan African nation
Over 6000 new hospital beds to be added by 2017.
We have made the most impact in the road sector by completing roads that were started without funding.
We have made considerable investments in all sectors of the economy.
Health: We have nearly completed UG teaching hospital & Ridge Hospital which will deliver over 6000 beds
Housing Sector: About 18000 housing units are at various stages of completion
845 MW of power will be added to the national grid by the end of the year
We are expanding the Kotoka and Tamale airport. And provision of 160 buses
We’ve sacrificed government revenue to help our farmers improve production
We must avoid huge budget deficits and overruns because of the Election year.
Fixed & mobile telephony & internet subscriptions at Aug, was over 33mill and 17mill respectively
About 18,000 housing units are at various stages of completion
According to the World Bank, Global growth target for 2015 was 2.9%
Trade between Ghana and Nigeria moved from GH210.7M in June 2014 to $365M in 2015
Ghana trade with Nigeria increase from GHC210m to GHC365.9m in 2015.
The cedi depreciates by about 14% against the major world currencies in 2015
Performance of interest rates on the money market remain mixed
Overall GDP Growth stands at 5.5%.
Total revenue up to Sep2015 was GHS 22.7bn
Tax revenue is estimated at GH 29.9bn
Proposed new benchmark oil price is $53.05
Taxes on goods and services estimated at GHS 11.3bn
Inflation of 3% is to be expected by 2018
Grants from donor partners estimated at GH 1.6bn
We will finance this deficit from local and foreign sources
We have embarked on a number of health projects which are near completion
Compensation for public sector employees estimated at 14 billion Ghana cedis
We will finance this deficit from local and foreign sources.
A total of GHc 6.6bn is estimated for capital expenditure
Total interest payments is estimated at GH 10.5bn
Gov’t to construct 1600 CHPS compounds.
Gov’t completed hostel and teachers block for Uni. in Volta region to be commissioned next week.
Gov’t intends to modernise agric. to help improve food security.
Cash grants have been increased from GHS 36 to GHS 44.
Government will expand the LEAP to 250,000 beneficiary households
Gov’t is collaborating with Spanish firms on irrigation to make all-year-round farming possible
Kpong Water project was completed with the capacity of producing 40M gallons a day
Over 1600MW of power has already been added to installed capacity
Government will continue to pursue its plan on increasing installed capacity in the energy sector
Gov’t has not been aloof to the dumsor crisis.
Work on TICO expansion, Kpone and Asogli plants are completed.
Medium term prospects for the energy sector remain bright
Karpower projects are expected to be completed by the end of this year.
The VRA is expanding its capacity will additional 39MW plant
Construction of Komenda Sugar factory is about 70% complete and will begin operations in 2016 –
Gov’t is collaborating with Spanish firms on irrigation to make all-year-round farming possible GreenHouse capacity building and training centers will be established
Cash grants under LEAP have been increased from GHS 36 to GHS 44.
Gov’t intends to modernise agric. to help improve food security.
Accra-Tema Motorway is to be expanded from 4 to 6 lanes.
Expansion of KIA is about 60% complete. Whole project is expected to be complete in 2016.
Nsawan-Akim Oda-Akwatia water project will add 1.63m gallons of water to the system
Construction of roads will continue without budget constraints
Gov’t has completed Kpong water project and can produce 40m gallons of water per day from GR Accra metro area
FIrst phase of Tamale Int. Airport to be completed in 2016
To bridge the digital gap gov’t completed 40 information & innovation centers throughout the 10 regions of Ghana
Efforts will be made to intensify the Military’s involvement in the security in Ghana.
The Military needs more equipment to function better.
2nd phase of GRA strategic plan and reform has started.
Government will link the public financial management system with parliament to ensure transparency
Ghana admitted to OECD development center.
Gov’t to set up committee to promote fiscal discipline.
The National Sanitation project will continue in 2016
About 70,00 households in 7 regions gained access to toilet facilities
Rural telephony program continues
Nsawan-Akim Oda-Akwatia water project will add 1.63m gallons of water to the system
Gov’t completed secondary data center in Kumasi to serve as a backup to assist the data center in Accra
The last of the tax bills will be brought to parliament.
Taxpayers should hold secure identification numbers to avoid embarrassment.
2nd phase of GRA strategic plan and reform has started.
Government will link the public financial management system with parliament to ensure transparency
NHIS act has been amended by parliament.
The last of the income tax bills will be brought to parliament.
Revenue administration bills also to be presented to parliament soon.
The last of the tax bills will be brought to parliament.
Taxpayers should hold secure identification numbers to avoid embarrassment.
GRA and MoF to reduce negative impact of tax exemptions.
No MDA should conclude contracts that grant tax exemptions.
GRA to migrate to an electronic platform.
Gov’t to use tax credit schemes instead of outright exemptions.
Income tax exemptions to go up from GHS 1584 to 2592
Blueprint to be developed for implementation of single window.
DVLA, EPA, Energy Commission, Gaming Commission to be weaned off.
Gov’t will impose sanctions on ppl who provide false information or engage in fraud relating to customs.
Income tax exemptions to go up from GHS 1584 to 2592.
Ghana is preparing itself for borrowing to help build infrastructure.
We intend to revisit interest rate hedge proposals to reduce libel
We will replace the manual fuel coupons with electronic e-coupons for all government vehicles
To encourage research in tertiary inst. we’re reviewing research & book allowance. A draft bill will be on soon
E-tracking and e-monitoring to be used to monitor accounts.
We successfully issued a 1bn Eurobond
We will use Stock Exchange rather than Bank of Ghana to use issue bonds.
Dormant asset scheme to be established by the end of the year.
Ministry of Finance is transferring projects that are financially viable to the infrastructure fund
We are looking at Airport City phase 2
Gov’t is to relaunch the National Identification initiative.
In 2016 we will seek the mandate of the people to enable us complete what we’ve started
In 2016, we will seek another mandate as a gov’t to move forward and achieve more for this great nation
We are committed to work towards a brighter future.
The results of our work is crystal clear
We have made foundations to move forward … widely acknowledged internationally
We’ve taken our vision of changing lives and transforming Ghana from the drawing board to the real world
We have brought vibrancy to our security services
We are mindful of our social intervention responsibilities
We’ve brought vibrancy in our security services and they’re excelling offshore in peacekeeping activities
We are expanding and upgrading power generation to become net exporters.
