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Tag: finance minister

  • E-Levy to be reviewed – Ofori-Atta hints

    Finance Minister Ken Ofori-Atta has hinted that government will soon review the Electronic Transfer Levy (E-Levy).

    Currently, all electronic money users including mobile money customers are charged 1.5 percent of accumulative transfers that exceed GH¢ 100 in a day.

    According to the Ministry of Finance, the proceeds from the E-Levy are woefully below projected numbers with only about 10 percent of the projected GH¢600 million monthly being realised.

    Speaking at a briefing in Accra on Wednesday, Ken Ofori-Atta said that the review of the E-Levy forms part of measures to help improve the government’s domestic revenue mobilisation.

    He added that the review is also targeted at ensuring that a lot of Ghanaians pay the levy.

    “Such exercises form part of an ongoing drive to ensure we take significant steps forward in remedying long-standing challenges with domestic revenue mobilization, indiscipline, corruption and leakages.

    “Of course, heightened tax compliance and increased tax audit exercises will continue to be complemented by policy initiatives that allow us to tap into a wider pool of taxpayers in the years ahead.

    “Towards this therefore we are looking at areas around the E-Levy to ensure its efficient implementation,” he said.

  • Budget agreement with the IMF before 2023 is feasible – Richmond Atuahene

    The government could be successful in including significant provisions of its agreement with the International Monetary Fund (IMF) in the budget statement for 2023, according to economist and banking expert Richmond Atuahene.

    He says, if the government puts in enough effort and is timely in its public negotiations, it will be possible to conclude negotiations before the budget is presented in November 2022 as said by the Finance Minister.

    The formal negotiations for a Fund-supported programme have begun, with the IMF team currently meeting government officials for a period of ten days.

    Talks have begun on a comprehensive debt sustainability analysis with the IMF for a US$3 billion support programme.

    “If we can get the whole program together, it will be possible. Normally, it takes an average of about six months to get these things sorthe ted out. So if government gets serious and is able to get the public consultations, it will be able to get it done before the November budget he [Finance Minister] is talking about”, he said.

    Minority spokesperson on Finance, Cassiel Ato Forson, has however cast doubts on the government’s intent to secure a deal with the IMF before the 2023 budget is prepared.

    “I doubt in the next six weeks we are going to have a programme. That will be a magic of a lifetime,” he said on Eyewitness News.

    In his view, any deal before the 2023 budget will not be in Ghana’s interests.

    The government says it is committed to ensuring that a comprehensive package is negotiated with the International Monetary Fund with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth, and promoting social protection.

  • LIVESTREAMING: Finance Minister briefs press on Ghana’s economy

    The Ministry of Finance is shedding light on the current state of Ghana’s economy.

    Finance Minister Ken Ofori-Atta is moderating the press conference underway.

    The government of Ghana is seeking assistance from the International Monetary Fund (IMF) to address the economic crisis facing the country.

    An IMF team arrived in the country on Monday to continue its engagement with the government, being represented by the Finance Ministry, Bank of Ghana and the Vice President, Dr Mahamudu Bawumia, the head of the economic management team.

     

  • Official bailout negotiations between the government and IMF will start on September 26 – Report

    Official negotiations for a package of economic assistance for Ghana are scheduled to start soon between the Ghanaian government and the International Monetary Fund.

    Upon reaching an agreement on a program, Ghana is reportedly looking to receive $3 billion from the Fund over the course of three years.
    The latest loan request was for $2.5 billion, which was double the previous $1.5 billion goal set by the administration.

    The talks between IMF representatives and Ghanaian authorities will begin on Monday, September 26, 2022, according to a Joy Business article.

    The COVID-19 pandemic and Russia’s invasion of Ukraine were recently blamed by the IMF’s managing director, Kristalina Georgina, for the current economic circumstances in Ghana.

    According to her, these two factors have significantly impacted other economies hence Ghana’s economic challenges cannot be blamed on bad policies implemented by the Ghanaian government.

    “Like everybody on this planet, Ghana has been hurt by exogenous shocks, first the pandemic, then Russia’s war in Ukraine, and we need to realize that Ghana’s challenge is not because of bad policies, but the combination of external shocks,” she indicated.

    The IMF boss also speaking on Ghana’s possible programme said her outfit is determined to reach an agreement with the Government of Ghana by the end of this year.

    She added that constructive discussions have so far been held with Ghanaian authorities for a possible economic support programme.

    On July 1, 2022, President Nana Addo Dankwa Akufo-Addo ordered Finance Minister, Ken Ofori-Atta to present an economic rescue programme to the IMF following the current economic conditions in the country.

    Subsequently, a team from the Fund led by Carlo Sdralevich visited Ghana between July 6 – 13, to gather relevant data and met with relevant stakeholders.

  • 295,000 Ghanaians employed in public sector since 2017 – Ofori-Atta

    Finance Minister, Ken Ofori-Atta, has said a total of 295,000 Ghanaians were enrolled into the public sector.

    He further stated that 84,000 new employees were being registered to be employed.

    Speaking on the floor of parliament during the 2022 mid-year budget review statement, Ken Ofori-Atta pointed out that public sector workers received their full salaries during the peak of the global pandemic – coronavirus.

    He further said the government will provide a 15% Cost of Living Allowance to public sector workers to cushion them in these challenging times.

    “Mr Speaker, this government has kept fate of public sector workers. Not a single public sector worker employee was laid off as a result of COVID-19 pandemic. Employees receive their full salaries, with frontline workers receiving additional incentives,” Ken Ofori-Atta said.

    “Since 2017, this government has employed an additional 295,000 Ghanaians in the public sector with it being the highest registering 84,000 new employees.

    “In spite of the prevailing global economic upheavals and the resultant fiscal challenges, government continues to pay salaries of all public sector employees..and has committed to pay Cost of Living Allowance of 15%,” he added.

    Cost of Living Allowance is the amount of money that an employee gets in addition to his or her normal pay.

    This comes in handy when the cost of living in a particular country is high.

    Source:ghanaweb.com

  • LIVESTREAMING: Finance Minister presents 2022 Mid-Year Budget Review

    Finance Minister Ken Ofori-Atta is presenting Government’s Mid-Year Review of the Budget Statement and Economic Policy for the 2022 fiscal year.

    The minister is expected to address economic issues, including the measures and policies the government has implemented in various sectors, in order to deal with the current economic crisis that the country is currently experiencing.

    The government’s decision to apply for an IMF bailout, the E-failure Levy’s to generate the anticipated revenue, and other problems with revenue performance for the first half of the year are likely to be discussed.

    The Mid-Year Budget Review is in accordance with Public Financial Management Act of 2016 and Article 179 of the 1992 Constitution (Act 921).

    Source: The Independent Ghana

  • State loses GH¢27bn to tax exemptions – Finance Minister confirms in parliament

    The country lost an amount of GH¢27 billion to tax exemptions between 2008 and 2020, Finance Minister, Ken Ofori-Atta, has confirmed.

    Disclosing this in parliament on Friday, July 15, Ken Ofori-Atta added that through these years, the country’s revenue dipped to about GH¢1.8 billion in only 2020.

    He said to avert some of these challenges, it is prudent for the state to protect the public purse to keep the economy on a sound footing.

    “It is true, as Ranking Member mentioned that some GH¢27 billion had been lost to tax exemptions. This brings into focus the need for all of us to protect the public purse. That is an important social re-engineering for us, as we lose revenue on many fronts,” he said.

    The Finance Minister, however, said Ghana is likely to make some savings of GH¢460 million on tax exemptions this year.

    The Tax Exemptions Bill 2020 was considered under a certificate of urgency by the Finance Committee.

    The Bill when passed, will set clear eligibility criteria for tax exemptions and provide for the monitoring, evaluation and enforcement of exemptions, Daily Graphic reported.

    It will also provide a regulatory regime for monitoring tax exemptions to ensure that exemptions granted are used for the intended purposes, as well as curtail the abuse of the existing exemption regime.

    Source:ghanaweb.com

     

  • Ofori-Atta answers questions on Covid-19 expenditure in Parliament

    The Finance Minister, Ken Ofori-Atta, is currently in Parliament answering 16 questions on the state of the country’s economy.

    He is providing the House the details of Covid-19 related expenditure by government and other matters.

    Ken Ofori-Atta was rescheduled to appear before the house after he failed to honor an earlier summon on Thursday, June 16.

    When the minister failed to show up the first time, the Minority in Parliament through the Ranking Member on the Health Committee, Kwabena Mintah Akandoh, described him as unfit for his office.

     

    Source: The Independent Ghana

  • Finance Minister expected in Parliament today

    The Minister for Finance, Ken Ofori Atta, is expected to appear before Parliament later today to answer 16 questions from different Members of the house.

    He is also expected to deliver a statement on how government funds have been utilised in the fight against Covid-19.

    His absence from Parliament last Thursday caused the Speaker to place a moratorium on business from the ministry until all outstanding obligations to Parliament are fulfilled.

    A 75 million Euro facility for a COVID-19 response programme was suspended pending the delivery of the account statement to the House by the Finance Minister.

    The Minister was scheduled to answer questions and deliver an important statement on the floor last Thursday before he put in a late request for the session to be postponed.

    The Majority Leader, Osei Kyei-Mensah-Bonsu came to the defence of the Minister following the postponement saying Mr. Ofori-Atta was yet to go over the responses to the question he was expected to deliver in Parliament.

    “He pleaded that he should see them [the questions] first, read them and appreciate what the technical people have brought  and if there are any other matters to be added on he does so becomes to this House so that he will be able to give a comprehensive response.”

    The Majority Leader also stressed that Mr. Ofori-Atta was not running away from the questions.

    “For anybody to jump to the conclusion that the minister is running away from responsibility, I shudder to think of how that is coming about.”

    Source: Citinews

     

  • Bagbin puts Finance Ministry business on hold over Ofori-Atta no-show in Parliament

    The Speaker of Parliament, Alban Bagbin, has put all business from the Ministry of Finance on ice until all pending questions are answered, and a COVID-19 Expenditure statement is delivered by sector to the Minister, Ken Ofori-Atta.

    Already, a 75 million Euro facility for a COVID-19 response program has been suspended pending the delivery of the account statement to the house.

    “Until we go through the accountability process, we will not take that motion… Today, he has another request before us. That will also be affected.”

    “Until he comes to respond to the questions and to submit the statement giving an explanation as to how the money has been applied, we will not entertain any business from that Ministry,” Mr. Bagbin said.

    The Minister was scheduled to answer questions and deliver an important statement on the floor on Thursday before he put in a late request for the session to be postponed.

    The Minister has 16 questions to answer on a number of issues, including the utilization of COVID-19 funds.

    The Majority Leader, Osei Kyei-Mensah-Bonsu came to the defence of the Minister following the postponement of the session.

    According to Mr. Kyei-Mensah-Bonsu, Mr. Ofori-Atta was yet to go over the responses to the question he was expected to deliver in Parliament.

    “He pleaded that he should see them [the questions] first, read them and appreciate what the technical people have brought  and if there are any other matters to be added on he does so becomes to this House so that he will be able to give a comprehensive response.”

    The Majority Leader also stressed that Mr. Ofori-Atta was not running away from the questions.

    “For anybody to jump to the conclusion that the minister is running away from responsibility, I shudder to think of how that is coming about.”

    Mr. Kyei-Mensah-Bonsu said it has been recommended that the Finance Minister appear before Parliament on Wednesday, June 22.

    Source: Citinewsroom

  • No more road tolls – Finance Minister declares

    Finance Minister, Ken Ofori-Atta, has announced government’s decision to abolish road tolls.

    He said inasmuch as money is needed for the fixing of deplorable roads in the country, the establishment of toll booths has led to congestions at various toll points.

    Ofori-Atta further said that the congestion has affected productivity negatively.

    It would be recalled that some Ghanaians including politicians have over the years called on government to rethink its decision on tolls.

    They explained that the toll booths cause traffic congestion and also pose health risks to commuters.

    Addressing this challenge in parliament during the 2022 budget reading, Ken Ofori-Atta said, “Mr. Speaker, our roads need fixing. Our roads are being fixed. It is true that more roads have been fixed and are being fixed over the last five years than any relative period in the entire history of our nation. We even want to do a lot more and this budget will cater for this.

    “That is why for decades, Government after Government imposed and maintained tolls on some public roads to raise funds for road construction and maintenance. This is the situation in many countries. However, over the years, the tolling points have become unhealthy market centres, led to heavy traffic on our roads, lengthened travel time from one place to another, and impacted negatively on productivity,” he said.

    “The congestion generated at the tolling points, besides creating these inconveniences, also leads to pollution in and around those vicinities. To address these challenges, Government has abolished all tolls on public roads and bridges. This takes effect immediately the budget is approved (after appropriation or now?). The toll collection personnel will be reassigned. The expected impact on productivity and reduced environmental pollution will more than off-set the revenue forgone by removing the tolls,” he declared.

    Source: www.ghanaweb.com

  • Finance Minister Presents US$28 million car loan agreement to Parliament

    Finance Minister, Ken Ofori-Atta, has submitted to Parliament for approval a loan agreement of US$28 million pending consideration by the Finance Committee.

    This is for the purchase of 275 vehicles for members of the 8th Parliament.

    Parliament has also approved a US$200 million World Bank loan to buy COVID-19 vaccines.

    The amount which was approved on Tuesday, July 6 will also be used to cater for other activities to strengthen the health system.

    A report by the Finance Committee indicated that out of the US$200 million, UA$137.15million will be spent specifically on vaccine procurement.

    Portions of the report read “The committee was informed that each dose of the vaccine is estimated to cost US$10.55.”

    The report added that, “this financing would provide improved access to affordable and equitable COVID-19 vaccines, strengthen the system for effective deployment as well as enhance preparedness and response to the Ghana COVID-19 strategic preparedness and response programme.”

    Source: 3news.com

  • We’ve invested ¢3.2bn in Free SHS – Finance Minister

    Finance Minister, Ken Ofori-Atta, has said the Nana Addo Dankwa Akufo-Addo-led administration has committed some GH¢ 3.2 billion in the implementation of the Free SHS.

    According to the finance minister, the Free SHS project has benefitted some 1.2 million Ghanaian children at the Senior High School level. This, he stated has resulted in parents and guardians saving GH¢ 2.2 billion.

    He made this known on the floor of parliament on Thursday as he presented the 2020 Mid-year budget review.

    “Mr. Speaker, in acknowledging that education is the primary driver for upward social and economic mobility, we rolled out a raft of policy measures to improve the opportunities of our people”.

    “We invested GH¢3.2 billion to implement Free SHS, resulting in over 1.2 million teenagers being in secondary school now, looking forward to better opportunities in life. For their parents and families, this has translated into GH¢2.2 billion in savings. That is money that the State has put back into the pockets of Ghanaians all across the country”.

    In addition, he said the government has also invested GH¢1.6 billion in the creation of jobs for about 100,000 youth through the flagship NaBCO programme.

    “We have also invested in excess of GH¢1.6 billion in 100,000 jobless but educated young adults who had been ignored by the State and were in despair. Through the new NABCO initiative, they have been engaged in various state and private institutions, with some of them securing permanent jobs in the process. That is money in the pockets of our youth”.

    Free SHS controversy

    Former Finance Minister under the erstwhile Mahama administration, Seth Terkper has ordered the Akufo-Addo government to come clean with Ghanaians about, their source of funding for the Free Senior High School (SHS) programme.

    This comes after the ruling New Patriotic Party, in May 2019 said the government has removed the Free SHS programme from the list of projects financed directly from Ghana’s oil cash fund – Annual Budget Funding Amount (ABFA).

    According to Mr Terkper, despite the above-mentioned claims, the government is still making use of the oil revenue to fund the Free SHS programme, hence, the need for the Finance Minister, Ken Ofori-Atta to fill Ghanaians in on why that action was taken.

    He further alleged that aside government taking from money from ABFA, it has also borrowed US$2 billion from the International Monetary Fund (IMF) to keep the Free SHS programme up and running

    Source: www.ghanaweb.com

  • Finance Minister to deliver mid-year budget Thursday

    Finance Minister Ken Ofori-Atta will on Thursday, 23 July 2020 present the 2020 midyear budget review to Parliament.

    The presentation of the midyear budget review falls in line with Section 28 of the Public Financial Management Act, 2016 (Act 921).

    The budget is expected to focus on roadmaps and strategies to generate revenue for the country following the outbreak of the deadly COVID-19 and recovery of the economy.

    According to the Finance Minister, the mid-year budget will also examine support for industries and businesses that have been badly affected by the pandemic.

    Mr Ofori-Atta says the budget will also consider extending some support to businesses and industries hit by the pandemic.

    It is expected that Mr Ofori-Atta will announce a roadmap on how the government will pay back the GHS10 billion that was borrowed from the Central bank and USD 219 million that was transferred to deal with the deadly virus.

    Source: Class FM