TIG Post

Tag: 2023 Budget

  • More praise for Parliament for its scrutiny of 2023 Budget

    The Coalition for Democratic Accountability and Inclusive Governance, otherwise called the Citizens’ Coalition, has described as a “bold and long overdue step”, Parliament’s close scrutiny of the 2023 Budget of the Government of Ghana.

    According to the Coalition, Parliament’s scrutiny of the budget “reflects a positive outcome of the current ‘Hung Parliament’ that should be celebrated,” and that “Given the economic challenges that faces the country, Parliament will have to intensify its oversight activities including reenergizing the Committee on Government Assurances and empowering Standing and Sector Committees to maintain strict vigilance over the implementation of the Appropriation Act by the Executive.”

    The commendation by the Citizens’ Coalition follows a similar one by the Ghana Center for Democratic Development, which equally gave Parliament the thumbs up for doing a diligent job on the 2023 budget.

    Citizens’ Coalition particularly welcomed “the decision of Parliament to reallocate the GH¢80 million allocated for the construction of the National Cathedral to the Roads and Highways and Communication Ministries and to slash the allocation to the Contingency Vote by half among other cost cutting measures in their approval of the 2023 Budget.”

    “As part of the cost cutting measures, the Coalition notes Parliament also defunded the Special Development Initiatives and Monitoring and Evaluation secretariats at the Office of the President. This responds to some of the Coalition’s proposals on areas of expenditure that government can still cut down. We reiterate our call on government to look closely at the cost of running government and reduce it further. Additional cuts should include reducing the total number of ministers and deputies to 60 as a first step and absorb and merge a number of secretariats set up to oversee flagship programs and let civil servants manage them in the relevant ministries, and finally reshuffle the Ministerial Team including relieving the Finance Minister of his duties in order to refocus government on the challenging task of returning Ghana to the path of economic recovery.

    “The Citizens’ Coalition will tirelessly continue to amplify the concerns of Ghanaians and demand that government acts in a manner which does not only take us out of this economic mess but give citizens, particularly the young men and women of this nation hope for the future,” said the group comprising Civil Society Organizations (CSOs) and individuals that harnesses democratic processes of mass education and mobilization to establish a culture of accountable and transparent governance that actively and consciously responds to the demands of citizens and promotes human rights, peace, constitutionalism and the national interest.

    Source: Myjoyonline

  • CDD lauds Parliament for its scrutiny of the 2023 budget

    The Ghana Center for Democratic Development (CDD-Ghana) has lauded Parliament for its scrutiny of the 2023 Budget of the Government of Ghana.

    It has also commended the house for disapproving a number of allocations.

    “The Center commends the House’s decision to disapprove allocations to the National Cathedral and reallocation to the Roads and Communications ministries, demolition and redevelopment of a new Accra International Conference Center (AICC), and establishment of three new diplomatic missions in Jamaica, Mexico and Trinidad, and Tobago”.

    In a statement issued Friday, December 23, 2022, the CDD-Ghana said ‘the decision to also defund the Special Development Initiatives and Monitoring and Evaluation secretariats at the Office of the President as well as slashing the Contingency Vote by half, among other cost-cutting measures is a great demonstration that the Members of Parliament are in touch
    with the economic reality of the country and will assist the government to spend the scarce public resources judiciously”

    CDD-Ghana also asked MPs to take advantage of the recess period to engage their constituents to keep them well-informed about their roles.

    Below is the statement

  • E-Levy: Ofori-Atta restores daily threshold ahead of amendment bill passage

    Before the House adjourns for the holiday break, Parliament is anticipated to approve the E-Levy amendment bill later today.

    Following warnings from the Minority, finance minister Ken Ofori-Atta decided to reinstate the 100 cedi daily barrier exemption.

    When the Bill is passed, the levy’s rate will drop from 1.5 to 1 percent.

    Starr News sources claim that following the government’s compromise, the minority has now opted to back the bill’s approval.

    The 2.5 percent increase in the VAT rate is one additional revenue strategy that the NDC MPs have not yet mentioned.

    Barring any changes, the VAT amendment bill is expected to be brought on the floor.

    Already Ken Ofori-Atta has appealed to parliament not to frustrate any government revenue measure announced in the 2023 budget warning such a move will further exacerbate the economic crisis.

     

     

     

  • 2023 budget has not been approved; three more stages left – Ablakwa

    Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa, has clarified that the 2023 budget statement and economic policy has not been approved by Parliament as reported.

    On Tuesday, it was widely reportedly by media houses that Parliament has approved the budget statement.

    According to Mr Ablakwa, Parliament has just concluded its debate and approval of the policy.

    Parliament is however yet to approve the specific budgetary allocations to the ministries, which is the second stage of the Budget approval process, he noted in a Facebook post.

    Parliament will then proceed to the third stage, which is to consider government’s revenue bills.

    The final stage is the approval of the Appropriation Bill which is an itemized sum of all approved estimates by the House based on which government can spend in the ensuing year.

    Some Ghanaians have criticised the Minority in Parliament for contributing to the alleged approval of the budget.

    Reacting to this, Mr Ablakwa stated that “Ghanaians did not give the NDC a parliamentary majority, neither is it an NDC President destroying our economy and introducing bitter policies to further impoverish the citizenry.”

    Nonetheless, he assured that they shall discharge their duties with “utmost integrity, good conscience, respect and solidarity with the suffering Ghanaians we represent.”

    The Minority in Parliament has threatened to reject the GH10 million budget allocation to Defence Advisory Services under the Ministry of Defense.

    Also, they have questioned why the allocation to the Contingency Vote has increased by over GH400 million from GH999 million to GH1.4 billion.

    Some items in the 2023 budget presented by Finance Minister, Ken Ofori-Atta, include a reduction in the Electronic Transaction Levy also known as E-levy -from 1.5% to 1%. The GH100 daily threshold has also be removed.

    On the other hand, government seeks to increase the Value Added Tax (VAT) by 2.5%.

    However, the Minority has registered strong disapproval with the tax measures government is introducing.

    Minority Leader, Haruna Iddrisu, argues that in an economy deemed to be in crisis, the e-levy should be at a rate of 0.5%. According to the minority, they disagree with an increase in VAT.

    Meanwhile, Parliament is expected to adjourn its third sitting on Wednesday, December 21, 2022.

    Source: The Independent Ghana

     

  • Here are the conditions that have to be met before Minority approves debt restructuring, budget estimates

    The minority has threatened to disapprove the 2023 budget estimates, and debt restructuring until some five conditions are met by government.

    According to Haruna Iddrisu, they will not accept the debt restructuring programme announced by the finance minister.

    This comes after Finance Minister Ken Ofori-Atta announced that Ghana is embarking on a debt exchange program to ensure that debt levels are brought to sustainable levels.

    At a press conference, the minority leader said, “Let me state, without any fear of contradiction, that the form and structure of the debt restructuring plan announced by Ken Ofori-Atta are unacceptable to us, and we simply will not accept it.”

    He also raised concerns over why the government failed to announce the exchange programme in the budget statement presented to parliament.

    According to Haruna Iddrisu the minority are aware that “the Akufo-Addo/Bawumia government have become desperate and is compelled after reckless mismanagement of the economy to achieve fiscal consolidation.”

    Below is a listicle of the conditions the minority has demanded before the budget estimates for 2023 will be approved;

    1. The resignation of the entire Economic Management Team and in particular Alhaji Bawumia from his position as Chair of that obviously moribund body. 2. The immediate resignation or dismissal of the Finance Minister, Ken Ofori-Atta 3. Immediate reduction in the number of Ministers and political appointees at the Office of the President by half. 4. Removal of all non-essential expenditure in the 2023 budget including the GHC 80 million allocated to the National Cathedral

    5. Reinstatement of the GHC100 exemption threshold for e-levy payment.

    Following the above, the minority in parliament reiterated that the country’s ailing economy characterized by unsustainable debt, inflation, and unprecedented credit rating downgrades, among others.

    Haruna Iddrisu explained the economic situation is so bad that Ghana is currently ranked side by side with Sri Lanka, which is considered the worst economy in the world and has defaulted on its debt.

    Speaking at the press conference, he said “as it’s now trite knowledge, the Ghanaian economy has been terribly mismanaged in the last five to six years by the Akufo-Addo/Bawumia administration leading to our request for a 17th IMF program to renew confidence and policy credibility on our failing economy despite haughty initial denials.

    “The severely ailing economy has been characterized by unsustainable debt, very high inflation, unprecedented and disastrous depreciation of the cedi, high budget deficits and unprecedented credit rating downgrades.

    “The economic situation is so bad that we are currently ranked side by side with Sri Lanka, which is considered the worst economy in the world and has defaulted on its debt.”

  • Reduce continuous dependence on devt partners to fund capital expenditure – SEND Ghana to gov’t

    A social advocacy group focused on enabling local communities to engage the government and ensure they benefit from national policies and programmes, SEND Ghana, has advised government to slow down on its dependence on development partners to fund its capital expenditure.

    In a press statement released on Thursday, December 1, 2022, the group noted that government’s contribution to the country’s capital expenditure continues to dwindle year after year.

    The report reveals that in the 2023 budget, government funds amounted to 1.8 percent, while development partners contributed to 92.22 percent of the total allocations.

    “Our analysis of the national budgets (2019-2023) shows that the government still relies heavily on Development Partners (DPs) to fund its capital investments for some major ministries. Investments in the provision of Water, Hygiene and Sanitation (WASH) services in the last four years have largely been donor driven. In the 2019 budget for the Ministry of Sanitation and Water Resources, 70.26 percent of projected allocation was sourced from DPs. In 2020, it increased to 82.39 percent,” part of the release read.

    “This trend continued in 2021 with projected funds from DPs, for purposes of capital expenditure, constituting 75 percent, while the GoG, Internal Generated Funds (IGF), and the Annual Budget Funding Amount (ABFA) collectively make up just about 25 percent. In the 2023 budget, a whopping 92.22 percent of the total allocation is expected to come from DPs while GoG’s contribution reduced from 8.48 percent in 2022 to 1.8 percent in 2023,” it added.

    SEND Ghana acknowledged that while a massive contribution by development partners to the capital expenditure was essential for economic growth, over-reliance on external supports may hinder government’s agricultural modernization and industrialization initiative.

    “While investment in CAPEX is critical in stimulating growth, over reliance on donor support, which is characteristically unpredictable, puts at risk the government’s drive in pursuing agricultural modernization and industrialization,” it added.

    Parliament is expected to debate the 2023 budget in the coming week.

     

  • Don’t pass expenditure lines in 2023 Budget – Tax Justice to Parliament

    The 2023 Budget and Economic Policy, released by Finance Minister Ken Ofori-Atta, contains certain expenditure lines that the Tax Justice Coalition is pleading with lawmakers to reject.

    The Coalition claims that the Minister of Finance broke the law when he gave money to the National Cathedral Secretariat that was intended for emergency use.

    The coalition said it has noticed with concern the budget line “Contingency Vote” that appears in Ghana’s Annual Budget and Economic Policy Statement over the years and wishes to call on Ghana’s Parliament not to approve the expenditure line in the 2023 Annual Budget and future Budgets.

    It described as unacceptable the contingency vote amounting to ¢1.41 billion, ¢3.41 billion, ¢5.9 billion and ¢14.5 billion for 2023, 2024, 2025 and 2026, respectively, saying “this is unacceptable as it defeats the purpose of budgeting and subverts the approval powers by Parliament”.

    “This is because the practice is at variance with the laws of the country. The laws have prescribed the procedures that the Minister of Finance must follow in order to cater for unforeseen and unbudgeted expenditures that come up after the budget has been approved”.

    “In other words, there is NO provision for a Contingency Vote in Ghana’s 1992 Constitution and there is also NO provision for it in the Public Financial Management Act, 2016 (Act 921) and its predecessor Financial Administration Act, 2003 (Act 654)” it explained.

  • Agric Ministry vs. Council of State allocation: ‘I got my numbers wrong’ – Joe Jackson

    The economist Joe Jackson has apologized and retracted recent statements that the budgetary allocations to the Ministry of Agriculture were lower than those to the Council of State.

    On Thursday, November 24, 2022, when the finance minister, Ken Ofori-Atta, presented the 2023 budget to parliament, he made the aforementioned remarks.

    He claimed that in creating the budget with the unequal funding for the two groups, the government had shown a lack of good judgment.

    In a tweet of November 29, 2022; he said: “Profound apology: I got my numbers wrong on the issue of the budget allocation to the Council of State. The statement went viral and I apologize to everyone on this issue.”

    He attached a link to the GhanaWeb story that carried his views as reported in a JoyNews interview.

    What Joe Jackson said:

    He alleged that the government ignored key ministries with the capability of pursuing the nation’s economic recovery by starving them of funding while allocating significant funds to some agencies with questionable usefulness.

    “I’ll be honest just this evening I got what I thought was a reliable version of the tables and I started looking through, some of the numbers just don’t make sense to me. Why is there 80 billion still there for the Cathedral? Forgive me, I don’t know. Why is there a contingency vote of 1.4 billion?

    “The office of government machinery, I don’t care where you came from, why is it at 1.4 billion? Guess what? Ministry of Food and Agric, do you know how much we’re giving them? 1.2billion. Do you know how much we’re spending on free SHS? 2.9 billion. The Council of State is receiving more money than the Food and Agric Ministry,” he said on Joy News PM Express.

    In his view, the government missed an opportunity to deal with the nation’s debt and economic crisis through the 2023 budget statement and economic policy.

    “The point is this, we want reassurance, we want to believe that this government can even carry the rest of the country with the austerity budget it has to impose. We want to believe somebody is trying to bridge the trust gap between the government and the public. That can be done when you trim down and all of us feel that you’re taking the pain as much as we have to take the pain,” he said.

    The government of Ghana is hoping to rescue the country’s challenging economy through several policies outlined in the 2023 budget.

  • Delay in approving 2023 budget will push Ghana down the drain – Abena Osei-Asare

    Abena Osei Asare, a deputy finance minister, said that the multitude of problems Ghana is now dealing with call for prompt solutions when the 2023 budget is approved.

    She asserts that in order to prevent further crises, the Minority side of parliament must support the budget’s adoption.

    The deputy finance minister said Tuesday that both domestic and international causes have contributed to Ghana’s economic difficulties.

    We confront regional and global issues, there is a continuous IMF negotiation, and we are working on debt operations to reduce our debt levels to levels that are manageable.

    “Mr Speaker, little did we know that a global pandemic and a war in Ukraine will bring us down to our knees…The quicker we do something about it, the better. It is in this respect that we are asking our colleagues on the other side to support the government in the revenue measures that we have stated in next year’s budget. Any delay in passing this revenue measure means we are pushing Ghana down the drain,” Abena Osei-Asare stressed.

    The debate on the 2023 budget began on November 29, 2022 on the floor of parliament, after which it will be approved by the House in due course.

  • Shisha, other electronic smoking devices to be taxed

    The government has declared its intention to tax electronic smoking devices beginning next year.

    Delivering the 2023 budget on the floor of parliament, the Finance Minister, Ken Ofori-Atta said, “excise tax reform will include a revision to the taxation of cigarettes and tobacco products to align with ECOWAS protocols.”

    “The reform will also target increase in the excise rate for spirits above that of beers. There will be taxation of products such as electronic smoking devices and liquids which are not currently taxed,” Ofori-Atta added.

    Meanwhile, the government has announced some measures to reduce public expenditure in 2023.


    Among other things, the government has banned public officials from using V8s/V6s for cross-country travel

    Ken Ofori-Atta also announced a hiring freeze for civil and public servants and non-critical projects suspended.

    He, thus, called for the support of the general public stating that “this is the time to rebuild, not to destroy and tear down. Let us work together for our collective benefit.

    Source: The Independent Ghana

     

  • Residents in Shama not convinced 2023 budget could address economic challenges

    Residents in the Shama District of Western Region have bemoaned the lack of effective measures in the budget statement to address the socio-economic hardships facing Ghanaians.

    According to them, the 2.5 percent Value Added Tax (VAT) announced in the 2023 budget would further aggravate the sufferings of Ghanaians.

    Speaking in an interview with the Ghana News Agency (GNA), the people expressed their disappointment with the 2023 budget as it did not show any commitment from the government to ensure drastic reduction of petroleum prices.

    Madam Atta Panyin, a petty trader and Auntie Adjoa, a shop owner at Inchaban and Shama Junction markets respectively noted that the unstable prices of petroleum products had negatively affected their businesses.

    They explained that manufacturers and producers had no choice than to increase the prices of their commodities and items due to the unrestrained increase of fuel prices.

     

    They noted that the unfortunate situation had made some of the traders who contracted loans to finance their businesses unable to service them while other businesses had collapsed, affecting the livelihood of many people.

    Mr. Esuah, Coufie, a retired civil servant, took a swipe at the government for not detailing concrete measures in the budget to help tackle the unemployment issues.

    He said a freeze on employment in the public sector would contribute to a high unemployment rate in the country.

    Also, some drivers who ply Takoradi – Cape-Coast-Accra Road said there was nothing new in the budget to boost the confidence of the general public.

    The drivers appealed to the government to consider measures to help reduce petroleum prices to help save their businesses from collapse.

  • 2023 Budget: Sad feelings greet government’s hiring freeze for civil, public servants

    Numerous Kumasi citizens have voiced their disappointment and melancholy at the government‘s plan to impose an embargo on hiring civil and public officials in 2023.

    In the 2023 Budget, presented to the Parliament of Ghana on November 24, this year’s Finance Minister, Mr. Ken Ofori Atta, stated that the government was taking action to address the “daunting economic difficulties facing our nation head-on and reset the economy.”

    However, a significant portion of Kumasi residents felt that a hiring freeze and the absence of new government agencies in 2023 were the wrong moves because more young people were still looking for work in the public sector despite the emergence of some private organisations.

    Reacting to the news in an interview with the Ghana News Agency in Kumasi, Ms Mary Osae, a National Service Personnel pointed out that the decision by the government had demoralised most of the national service persons, since some of them had hoped to be retained at the government institutions they were currently serving in.

    She explained that, “I am in no way linked to the government’s new models YouStart, Economic Enclaves, 1D1F among others, because the course I studied at the tertiary level has no bearing with these interventions.

    ‘I was hoping I could be retained at where I am serving now,” she sighed.

    Maame Yaa Serwaa, a trader at Adum, had the fear that the public sector employment freeze could arouse a lot of criminal and indecent activities since it was the youth that would be affected most.

    She suggested that, the government channelled more funds to support job creation in the public and civil sectors, where most jobs were permanent and secured.

    Mr Joseph Dogbey, a graduate nurse awaiting his postings expressed fear of the government suspending postings of trainee nurses.

    He told the GNA that, he had been waiting for his postings since 2020, and the decision by the government was giving him no hope of a job any time soon.

    According to Mr Ofori Atta, “the government cares deeply about our people, and is very much concerned about their current plight and the future of our country.

    The 2023 Budget has been prepared with high consideration for the aspirations of Ghanaians and the brighter prospects of our economy to transition into Upper Middle Income within a decade, he stated.

    Other people who spoke to the GNA on the general overview of the 2023 Budget, however, said nothing in the budget presented depicted a true path of progression for Ghana.

    They said since the cedi continued to depreciate, the agenda of mobilizing the domestic revenue with increasing the VAT rate by 2.5 percent among other adjustments, were still going to affect the people’s socio-economic lives.

  • Who will monitor ‘ban on V8 use’ as contained in 2023 budget? – Economist asks

    Lecturer at the University of Ghana, Prof. Godfred Bopkin, has demanded further information regarding the recent announcement of a ban on the use of V8 by all government appointees in the capital.

    He worries that the directive contained in the 2023 Budget, which was delivered to Parliament on November 24, may be disregarded until clear guidelines are provided.

    The economist, who has long supported austerity in light of Ghana’s current economic crisis, issued a warning that government austerity measures must be made explicit in order for the public to understand them.

    “We must be very careful we don’t push people beyond the point where they will not be able to tolerate. That is the part that we are getting towards and especially when you don’t see greater commitment in internalizing that austerity.

    “So, if you tell me that don’t drive V8 in Accra, who monitors that? If I see V8 leaving from East Legon, do I conclude it’s going to Central Region?” he quizzed in an interview on Joy FM, November 25.

     

    What Ofori-Atta said about V8s

    Under the section of the budget on “Implementation of the Cabinet directives on expenditure measures,” the Minister said:

    Mr. Speaker, as a first step toward expenditure rationalisation, Government has approved the following directives which takes effect from January, 2023:

    ● All MDAs, MMDAs and SOEs are directed to reduce fuel allocations to Political
    Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit system, and fuel depots. Accordingly, 50% of the previous years (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOEs;

    ● A ban on the use of V8s/V6s or its equivalent except for cross country travel. All government vehicles would be registered with GV green number plates from January 2023;

    ● Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles;

    ● Only essential official foreign travel across government including SOEs shall be allowed. No official foreign travel shall be allowed for board members. Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff;

  • TUC opposes Public Sector employment freeze

    The government’s proposal to freeze employment in the Civil and Public services in 2023 has angered the Trades Union Congress (TUC).

    The TUC thinks the ruling is unjust because the government vowed not to do it.

    In his presentation of the 2023 budget statement on Thursday, Finance Minister Ken Ofori-Atta highlighted the government’s decision as one of several steps to rein in the spiraling public spending.

    On Friday, Deputy TUC General Secretary, Joshua Ansah said TUC is disappointed in government for that decision.

    “I am really disappointed about the freeze of employment in the civil and public services in 2023, because this is something that the TUC has spoken about it all this while. When the IMF team came to this country, we had the opportunity to meet with them and one of the issues we raised with them is about the freeze of employment that always becomes their conditionality anytime they access their programme, we were assured that that was not going to happen,” he stated.

    Mr. Ansah noted that the TUC will discuss this issue with its Social Welfare Committee and respond appropriately.

    Meanwhile, government has introduced a number of measures to cut its expenditure for the year 2023.

    Below is the full text of implementation of the Cabinet directives on expenditure measures

    Mr Speaker, as a first step toward expenditure rationalisation, Government has approved the following directives which take effect from January 2023:

    • All MDAs, MMDAs and SOEs are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit systems, and fuel depots. Accordingly, 50% of the previous year’s (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOES;

    • A ban on the use of V8s/V6s or its equivalent except for cross-country travel. All government vehicles would be registered with GV green number plates from January 2023;

    • Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, the purchase of new vehicles shall be restricted to locally assembled vehicles;

    • Only essential official foreign travel across government including SOEs shall be allowed. No official foreign travel shall be allowed for board members.

    Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff;

    • As far as possible, meetings and workshops should be done within the official environment or government facilities;

    • Government-sponsored external training and Staff Development activities at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year;

    • Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.;

    • A freeze on new tax waivers for foreign companies and review of tax exemptions for the free zone, mining, oil and gas companies;

    • A hiring freeze for civil and public servants

    • No new government agencies shall be established in 2023;

    • There shall be no hampers for 2022;

    • There shall be no printing of diaries, notepads, calendars and other promotional merchandise by MDAs, MMDAs and SOEs for 2024;

    • All non-critical projects must be suspended for the 2023 Financial year.

  • Government yet to make conclusive decision on debt operations – Finance Ministry

    According to the Finance Ministry, the government has not yet made a decision about debt operations.

    This comes after the Finance Minister stated that Ghana will implement a debt swap program due to the country’s unsustainable levels of debt during the introduction of the 2023 budget.

    However, the Ministry stated in a related announcement on November 25, 2022, that no decision has been taken.

    “As stated in the Budget Speech by the Honourable Minister for Finance, Ken Ofori-Atta, the Government of Ghana is contemplating a debt operation aimed at alleviating the pressures on the national budget and restoring debt sustainability. This would also open up financing streams and provide a needed balance of payment support from the Fund,” a part of the statement read.

    It however added that “details of the different layers of a debt operation, including the terms of principal payments and interest on the public debt, are still being discussed, taking into account principles of debt sustainability and international best practices.”

    Meanwhile the Deputy Minister of Finance, Abena Osei-Asare noted that treasury bills will not be affected by any debt restructuring measure the government will adopt.

    “The Government of Ghana reiterates its commitment to rolling out a lasting solution to the current economic challenges, with the ultimate goal of restoring macroeconomic stability and anchoring debt sustainability,” the statement concluded.

  • 2023 budget was ‘fantastic delivery, excellent’ – Kamal Deen

    The Finance Minister Ken Ofori-Atta was excellent in the delivery of the 2023 budget statement.

    He described the presentation as ‘fantastic, excellent.”

    Kamal Deen further said that the government acknowledges that times are hard for Ghanaians hence, drastic measures taken in the 2023 budget statement.

    Speaking on the Big Issue with Roland Walker on TV3 Friday November 25 while discussing the budget presentation, he said regarding the embargo placed on employment into the public and civil service that it means “those who have reached retirement age must go for them to be replaced.”

    He added “drastic measures needed to be introduced, times are are hard, we have had the president acknowledging that fact, Finance Minister acknowledging, Vice President acknowledging that we are not in normal times.”

    The Minister of Finance Ken Ofori-Atta announced in the 2023 budget a freeze on employment into the civil and public service.

    He also said there shall be no new government agencies established in 2023.

    He said these while presenting the budget in Parliament on Thursday November 23.

    Mr Ofori-Atta said as a first step toward expenditure rationalisation, government has approved a number of directives which takes effect from January, 2023.

    These are “All Ministries, Departments and Agencies (MDAs), Metropolitan, Municipal and District Assemblies (MMDAs) and State-Owned-Enterprises (SOEs) are directed to reduce fuel allocations to Political Appointees and heads of MDAs, MMDAs and SOEs by 50%. This directive applies to all methods of fuel allocation including coupons, electronic cards, chit system, and fuel depots. Accordingly, 50% of the previous years (2022) budget allocation for fuel shall be earmarked for official business pertaining to MDAs, MMDAs and SOEs;

    “A ban on the use of V8s/V6s or its equivalent except for cross country travel. All
    government vehicles would be registered with GV green number plates from
    January 2023; Limited budgetary allocation for the purchase of vehicles. For the avoidance of doubt, purchase of new vehicles shall be restricted to locally assembled vehicles;

    “Only essential official foreign travel across government including SOEs shall be
    allowed. No official foreign travel shall be allowed for board members.”

    The Finance Minister added “Accordingly, all government institutions should submit a travel plan for the year 2023 by mid-December of all expected travels to the Chief of Staff;  As far as possible, meetings and workshops should be done within the official environment or government facilities; Government sponsored external training and Staff Development activities at the Office of the President, Ministries and SOEs must be put on hold for the 2023 financial year; Reduction of expenditure on appointments including salary freezes together with suspension of certain allowances like housing, utilities and clothing, etc.;

    “A freeze on new tax waivers for foreign companies and review of tax exemptions for free zone, mining, oil and gas companies; A hiring freeze for civil and public servants, No new government agencies shall be established in 2023; There shall be no hampers for 2022;  There shall be no printing of diaries, notepads, calendars and other promotional, merchandise by MDAs, MMDAs and SOEs for 2024;  All non-critical project must be suspended for 2023 Financial year.”

     

  • ‘N) fiaa n) baa hi’: The consoling Ga words Ken Ofori-Atta used in 2023 budget

    Having presented the Budget Statement and Economic Policy of Ghana to parliament in the last 6 years, the Minister of Finance, Ken Ofori-Atta, has become known for one profound, unmistakable thing: quoting biblical scriptures.

    Like the typical white attires that the minister has been synonymous with in his administration, many have always looked forward to which scripture he would state in his addresses to parliament.

    And while he did not disappoint again this time, there was a new addition that perhaps, is the expectation that Ghanaians would be consoled by.

    In his concluding words while presenting the 2023 budget to parliament, on Thursday, November 24, 2022, the minister shared some words in the local Ga language.

    Not a typical reader of the Ga language, Ken Ofori-Atta attempted to read the words, ‘N) fiaa n) baa hi,’ to wit, ‘everything will be fine or alright.’

    The consoling words from the minister were perhaps, intended to communicate to Ghanaians that regardless of the current economic downturns the country is faced with, there is light at the end of the dark tunnel.

    Ghana has been at one of its lowest economically in many decades, with unprecedented statistics in such areas as the performance of the Ghana cedi to the US dollar, fuel prices, as well as debt to GDP figures.

  • VAT to increase by 2.5% – Ken Ofori-Atta

    Government has increased its Value Added Tax (VAT) rate by 2.5 percentage points.

    This information was announced by Finance Minister, Ken Ofori-Atta, when he presented the 2022 budget statement in Parliament on Thursday.

    Prior to increase, VAT – standard rate was at the rate of 12.5%, National Health Insurance Levy (NHIL), 2.50%, Ghana Education Trust Fund (GFL), 2.50%, 1% COVID-19 Levy, 1%, (VAT) on NHIL and GFL and 1% COVID-19 Levy was 0.75%.

    From 19.25%, VAT will now hit 21.75%.

    “Mr. Speaker, the demand for roads has become the cry of many communities in the country. Unfortunately, with the current economic difficulties and the absence of dedicated source of funding for road construction, it is difficult to meet these demands. In that regard we are proposing the implementation of new revenue measures,” he said.

    According to him, the increase in VAT is expected to yield GHc2.70 billion which will be used to augment funding for the road infrastructure development.

    “This will be complemented by a major compliance programme to ensure that we derive the maximum yields from existing revenue handles,” he added.

    Source: The Independent Ghana

     

     

  • Rejecting 2023 budget could derail IMF negotiations – Gabby Otchere-Darko

    Founder of the Danquah Institute think tank, Gabby Asare Otchere-Darko, says Ghana’s economic crisis could worsen should the 2023 Budget not be passed on time.

    According to Mr Otchere-Darko, the budget to be presented on Thursday, November 24, cannot suffer the fate of the previous one, referring to the 2022 Budget that saw a long debate and a protracted procedure.

    He argued that failure to pass the budget could derail the progress made with the International Monetary Fund (IMF) for a bailout.

    Private legal practitioner and a member of the governing New Patriotic Party (NPP) has called on the Minority to support Mr Ofori-Atta.

    Meanwhile, the Majority in Parliament has rescinded its decision to be absent from the Chamber when Finance Minister, Ken Ofori-Atta, presents the 2023 budget and economic statement.

    The Majority’s earlier position was that Mr Ofori-Atta could no longer be the face that represents the economy, thus should be replaced.

    As part of measures to ensure the president accepts their request, some 98 NPP MPs threatened to boycott the budget reading.

    Their actions prompted an intervention by the leadership of the ruling New Patriotic Party.

    On November 22, 2022, the leadership of the NPP engaged the Caucus to find an amicable resolution to the impasse.

    After deliberation, the party’s leadership resolved that the President will act on the earlier demands of the MPs after the 2023 budget has been read and appropriated.

    In view of this, the Majority Caucus has decided that its members will attend to all government business in the house, particularly, the 2023 Budget Statement and Economic Policy and all related matters.

     

     

     

  • 2023 Budget: Revive and transform tourism sector – Tourism Federation to govt

    The Ghana Tourism Federation says government has lip services with regards to the growth of the tourism, sector despite its enormous potential.

    The Federation, therefore, wants to see an ambitious policy in the 2023 Budget to revive and transform the sector as one of the significant contributors to the economy.

    Speaking to Joy Business, Executive Secretary of the Federation, Emmanuel Frimpong said the government must begin implement promises made to stakeholders in the tourism sector.

    “I’m saying that government over the years has just given too many lip services to the sector. If you look at the potential of tourism in this country, and we’ve seen countries that are using tourism to contribute so much to their economy. But we hear too many talks, little efforts to actually position the tourism sector to contribute much to the economy”.

    “I think government has to prioritise whatever they are doing and I hope that this budget [2023] will seek to do that because if you look at tourism, it is one of the sectors that has the potential to impact on every aspect of the economy where everybody benefits, especially women”, he explained.

    He further added that tourism has the potential to bring in significant foreign exchange earnings.

    “I believe tourism has the potential to change some of the things we are seeing. I mean come to think of it, anybody that comes to the country as a tourist, comes here with foreign money. So, if we are talking about dollars that we don’t have, what is our problem”, he mentioned.

    “We have an airport that when people are coming here, it is difficult to get visa. Visa on arrival is a challenge…electronic visa is a challenge. Why should I be here chilling, I don’t know.  So these are the hanging proves that we should be looking at but government is doing nothing.

    Source: MyJoyOnline

     

  • Rising inflation: Portugal’s public health sector strike over pay

    The strike over rising living costs comes just a week before the final vote on the 2023 budget.

    Thousands of doctors, nurses, teachers, and civil servants in Portugal have staged a walkout to demand wage increases amid rampant inflation, putting the majority Socialist government on the defensive just a week before a final vote on the 2023 budget.

    Many schools and courts were closed on Friday across the country, hospital appointments and surgeries were cancelled, and garbage was left uncollected.

    Because of high energy prices and rising living costs, many European countries are experiencing labour unrest.

    The one-day strike was called by the Common Front of the Public Administration Union, which represents nearly half of Portugal’s 730,000 civil servants.

    “This year all workers have already lost one month’s salary due to inflation,” union coordinator Sebastiao Santana told reporters. “We are getting poorer.”

    Consumer prices

    Civil servants had a 0.9-percent pay rise in 2022, but consumer prices soared more than 10 percent year-on-year in October, the fastest pace in more than 30 years.

    “We are not on strike because we like to lose a day’s wage, we are on strike because the government has not responded to the issues we presented, mainly the need to compensate for high cost of living due to inflation,” Santana said.

    The union is demanding a 10-percent salary increase, and a minimum of 100 euros ($103.67) a month for 2023, while the government has proposed an average pay rise of 3.6 percent. The government is forecasting inflation of 4 percent next year.

    In October, the government, key business associations and the country’s second-largest labour union GUT struck a deal to raise the wages of private sector workers by 5.1 percent in 2023.

    Workers at Volkswagen’s Autoeuropa car plant entered their second day of a partial strike demanding an extraordinary pay rise. The strike at one of Portugal’s top exporters affects the first two hours of each of its four shifts.

  • Bring back tolls through 2023 budget – Former tollbooth attendants demand

    Former workers of the various toll booths across the country are demanding the reintroduction of toll collections.

    They want government to make such an announcement in the 2023 Budget Statement, scheduled to be read in Parliament on November 30, 2022.

    The Transport Ministry on November 18, 2021, announced an immediate cessation of the collection of tolls.

    The action was taken after government claimed there was chaos at various tollbooths following an announcement the Finance Minister, Ken Ofori-Atta made in the 2022 budget on the cessation of such revenue collection.

    Speaking to Citi News a year after they were laid off, Secretary to the Ghana Toll Workers Union Edward Duncan said toll workers have been forced back on the streets while others face eviction from their landlords.

    “Most of my colleagues are knocking on the doors of companies, but the jobs are not there, so we hope that the Government will understand or know that they made a mistake with that policy [cancellation] and then they have to reverse it and come back.”

    “We are hoping and looking at the announcement they will make concerning toll collection. We are keen on that because it has been a year since the tolls were cancelled and there is no livelihood and there is nothing for us,” he lamented.

    Many Ghanaians condemned the cancellation and demanded its immediate reversal.

    The Minority Caucus in Parliament demanded its reinstatement but the Majority Leader, Osei Kyei-Mensah-Bonsu praised the cancellation saying it was timely implemented to save lives and properties.

    Source: Citinews

  • Finance Minister highly unlikely to present the 2023 Budget – Alfred Ogbamey

    A member of the National Democratic Congress, Alfred Ogbamey, says the Finance Minister, Ken Ofori-Atta may be out of office by next week.

    According to him, following recent agitations from the Majority side in Parliament and the Minority filing a motion of censure against the Minister, it is expected that Ken Ofori-Atta will step down sooner than is expected.

    “Well my information is that the Finance Minister may not be around. If my information is right, by next week he may not be around. They were looking at end of November but given the stance of his own MPs as well as the Minority it is highly unlikely that he may present the budget,” he said on JoyNews’ Newsfile Saturday.

    Earlier, Majority MPs in Parliament had threatened to boycott the reading of the 2023 budget if Finance Minister, Ken Ofori-Atta was not sacked.

    Addressing a press conference, the NPP lawmakers stated that they are displeased with the management of the economy under Ken Ofori-Atta.

    The MPs have therefore signed a petition urging the President to sack his cousin, Ken Ofori-Atta.

    “We have made our great concern to the President through the Parliamentary leadership and the leadership of the party without any positive response.

    “We are by this medium communicating our strong desire that the President changes the Minister of Finance and the Minister of State at the Finance Ministry without any further delays, in order to restore hope in the financial sector and reverse the downward trend in the growth of the economy”, MP for Asante Akim North, Andy Appiah-Kubi said.

    The legislator continued, “meanwhile we want to serve notice, and notice is hereby served that until such persons as aforementioned are made to resign or removed from office, we members of the Majority Caucus here in Parliament will not participate in any business of government by or for the President by any other minister.”

    Following an intervention from the Presidency and the New Patriotic Party officials, the NPP MPs relaxed their ultimatum after being assured that their concerns will be revisited after an IMF deal has been reached and the 2023 Budget statement read and appropriated.

    Nonetheless, the Minority caucus in Parliament filed a motion of censure against the Finance Minister.

    The grounds for the Minority’s motion include mismanagement of the economy, alleged withdrawals from the Consolidated Fund, and illegal payment of oil revenues into offshore accounts among other reasons.

    The Speaker of Parliament has since directed the motion to be presented to an adhoc committee to interrogate the reasons for the vote of censure against the Minister.

    Source: Myjoyonline

  • 2023 Budget: AGI calls for relook at reversal of benchmark value policy

    The Association of Ghana Industries (AGI), has asked the government to consider some raft measures associated with the reversal of the benchmark value and implementation of zero-rated import duties on industrial raw materials.

    The request comes on the heels of the government’s intention to engage stakeholders ahead of the 2023 Budget presentation aimed at restoring and sustaining macroeconomic stability.

    Speaking to the media after a dialogue between the association and  the finance minister, President of the AGI, Humphrey Ayim-Darke said he is optimistic that Ghana’s dire economic situation will improve if these measures are considered.

    In order to improve the operations of its members, he declared that the association would continue to bring up crucial concerns, including the demand for international verification and benchmark discount value, among others.

    Regarding challenges in conducting business, Mr. Ayim-Darke emphasised the need for government to enhance mechanisms that will make it simpler for companies to import raw materials for processing.

    “We want the budget to look at issues like the VAT, zero-rated import duty on industrial raw materials to help rejuvenate the private sector,”  he stressed.

    He added that granting tax exemptions would significantly contribute to job creation and economic growth.

    “If we could get some rejuvenation with some tax exemptions, some interventions like the zero-rated on raw materials and these reversals of the VAT and policy rate, we could help the government rejuvenate and create jobs in the private sector.

    Source: The Independent Ghana