ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
Mr Speaker, based on the overall macroeconomic objectives and the medium-term targets, the following macroeconomic targets are set for the 2023 fiscal year: i. Overall Real GDP growth of 2.8 per cent; ii.
Non-Oil Real GDP growth of 3.0 per cent; iii.
End-December inflation rate of 18.9 per cent iv.
Primary Balance on Commitment basis of 0.7% of GDP; and v. Gross International Reserves to cover not less than 3.3 months of imports.
Resource Mobilisation and Allocation For 2023 Resource Mobilisation for 2023 Mr Speaker, Total Revenue and Grants is projected at GH¢143,956 million (18.0% of GDP) and is underpinned by permanent revenue measures - largely Tax revenue measures - amounting to 1.35 per cent of GDP as outlined in the revenue measures.
Resource Allocation for 2023 Mr Speaker, Total Expenditure (including clearance of Arrears) is projected at GH¢205,431 million (25.6% of GDP).
This estimate shows a contraction of 0.3 percentage points of GDP in primary expenditures (commitment basis) compared to the projected outturn in 2022 and a demonstration of Government’s resolve to consolidate its public finances.
Mr Speaker, the following projections underpin the resource allocation for 2023: • Compensation of Employees is projected at GH¢44,990 million (5.6% of GDP).
• Mr Speaker, the Use of Goods and Services is also projected at GH¢8,048 million (1.0% of GDP).
• Mr Speaker, Interest Payment is projected at GH¢52,550 million (6.6% of GDP).
• Mr Speaker, Grants to Other Government Units is estimated at GH¢30,079 million (3.8% of GDP).
• Mr Speaker, Capital Expenditure (CAPEX) is projected at GH¢27,694 million (3.5% of GDP).
• Mr Speaker, Other Expenditure, mainly comprising Energy Sector Levies (ESL) transfers and Energy Sector Payment Shortfalls is estimated at GH¢26,739 million.
Budget Balances and Financing Operations for 2023 Mr Speaker, based on the estimates for Total Revenue & Grants and Total Expenditure (including arrears clearance), the overall Budget balance to be financed is a fiscal deficit of GH¢61,475 million, equivalent to 7.7 per cent of GDP.
The corresponding Primary balance is a deficit of GH¢8,925 million, equivalent to 1.1 per cent of GDP.
Mr Speaker, I wish to notify you that, Budget items such as Interest Payments, Amortisation and Financing will be adjusted accordingly once Government’s debt management strategy and financing to be provided by international partners in the context of the Fund-supported programme have been finalised.
Revenue Measures Mr Speaker, Government has consistently indicated its intention to improve the revenue collection effort by leveraging technology to enhance tax administration, identify and register taxable persons and improve tax compliance.
Mr Speaker, Government has received several proposals for review of the Electronic Transfer Levy and is working closely with all stakeholders to evaluate the impact of the Levy in order to decide on the next line of action which will include revision of the various exclusions.
As a first step, however, the headline rate will be reduced to one per cent (1%) of the transaction value alongside the removal of the daily threshold.
To this end, the income tax regime will undergo reforms to among others, review the upper limits for vehicle benefits and introduce an additional income tax bracket of 35%.
Expenditure Measures Mr Speaker, key expenditure measures will also be pursued to support the fiscal consolidation process.
In this regard, it is proposed that Government: i. Reduce the threshold on earmarked funds from the current 25 per cent of Tax Revenue to 17.5 per cent of Tax Revenues; ii.
Migrate all earmarked funds onto the GIFMIS platforms and ensure they use the GIFMIS platform to process all their revenue and expenditures transactions.
v. Continue with 30% cut in the salaries of the President, Vice President, Ministers, Deputy Ministers, MMDCEs, and political office holders including those in State-Owned Enterprises; vii.
Place a cap on salary adjustment of SOEs to be lower than negotiated base pay increase on Single Spine Salary Structure for each year; Fiscal Contingency Planning Mr Speaker, given the uncertainties about the macroeconomic environment, Government stands ready to deploy additional tools if fiscal outturns require further interventions.
On the revenue side, some of the measures that will be identified for the Medium Term Revenue Strategy being designed by Government in the context of the IMF programme could be implemented early on.
On the spending side, MDAs budget allocation for Goods and Services or Domestic CAPEX would be strictly controlled by the quarterly budget allotment system.
Key Government Interventions Mr Speaker, the present economic challenges have heightened the need to transform our economy through a renewed focus on boosting local capacity for increased export promotion, to expand job creation while protecting the vulnerable.
Government is therefore taking active steps to address the impact of these economic shocks on Ghanaians through the seven-point agenda to restore macroeconomic stability and accelerate our economic transformation as articulated in the Post-COVID-19 Programme for Economic Growth.
DEVELOPING LOCAL CAPACITY FOR PRODUCTION Mr Speaker, as I have already indicated, Ghana’s heavy dependence on imports places tremendous pressure on the Cedi, creating an unfavourable balance of payments position.
On average, Ghana’s import bill exceeds US$10 billion annually and is accounted for by a diverse range of items that include iron, steel, aluminum, sugar, rice, fish, poultry, palm oil, cement, fertilizers, pharmaceuticals, Toilet roll, toothpick, fruit juices, etc.
We currently have the capacity as a country to locally produce items that account for about 45 per cent of the value of our annual imports.
These include rice, fish, sugar, poultry, cement, pharmaceuticals, jute bags, computers, etc.
To this end, Government will target these products for import substitution by supporting the private sector, through partnerships with existing and prospective businesses to expand, rehabilitate and establish manufacturing plants targeted at producing these selected items.
GhanaCARES “Obaatan pa” Programme Mr Speaker, it has been two years since the launch of the GhanaCARES programme to mitigate the severe impact of the COVID-19 pandemic on the economy.
Significant achievement has been made with the implementation of agreed activities despite the current macroeconomic challenges.
Mr Speaker, the high food prices and pressures on the local currency validate the current focus of the GhanaCARES Programme to bolster the productive and export capacity of the private sector.
To this end, an Economic Enclave project with a focus on providing support for the cultivation of up to 110,000 acres of land in the Greater Accra, Ashanti, Central, Savannah and Oti Regions is being pursued.
Mr Speaker, this initiative which seeks to expand our production and productivity in rice, tomato, maize, vegetables and poultry is being led and coordinated by the Millennium Development Authority (MiDA) in collaboration with other Government institutions such as the Ministry of Food and Agriculture (MoFA), Ministry of Energy, Ghana Irrigation Development Authority (GIDA), 48 Engineers Regiment of the Ghana Armed Forces (GAF) under the Ministry of Defence, the National Entrepreneurial and Innovation Programme (NEIP) and the National Service Secretariat (NSS).
Mr Speaker, consistent with the private sector-led approach, the programme will engage interested private sector actors to expand agricultural production and processing in the Asutuare-Tsopoli Economic Enclave area based on a Partnership Framework.
The same approach will be adopted for the lands secured in the Ashanti, Central, Savannah and Oti regions.
Mr Speaker, we have also initiated discussions with the Graphic Communication Group Limited to explore the feasibility of producing paper locally using the by-products of the cultivated rice in the Economic Enclave at Asutuare as raw material.
It is envisaged that the imports of paper will be replaced, and more jobs created.
Mr Speaker, in addition to the Enclave Project, GhanaCARES programme in 2023 will continue to offer catalytic support in the following targeted areas.
To this end, the programme will: ● work with DBG to provide funding to interested and targeted farmers ● support MoFA to adopt and deploy the farmer registration database for the farmer input subsidy programme to enhance efficiency; ● support the Ministry of Communication and Digitalisation (MoCD) to establish a tech hub to improve knowledge in Technology and innovation by the youth, in collaboration with the University of Ghana; ● ensure the operationalisation of the Foundry under a sustainable private sector management framework; ● provide interest rate subsidies and direct financing; including supporting prioritised sectors in the rural economy through the ARB Apex Bank and its network of banks as agreed under the AfDB-supported Post-COVID Skills and Productivity Enhancement Project.
YouStart Mr Speaker, in fulfilment of our pledge of building an entrepreneurial state, the implementation of the YouStart programme began this year.
The programme was successfully piloted with 70 beneficiaries and an amount of GH¢1.98 million was disbursed to support youth-led (below the age of 40 years) SMEs in poultry, agro-processing, ICT, textiles, and food processing sectors.
Government has successfully signed an MoU with the Ghana Association of Banks (GAB) and 11 other commercial Banks for the implementation of the commercial component of the programme.
Mr Speaker, a launch for the District Entrepreneurship Programme (DEP) component of the programme was held on November 14, 2022, and it is expected that the launch of the Commercial component of the Programme will occur by the end of 2022 to enable qualified beneficiaries access support.
One District One Factory (1D1F) Mr Speaker, the One-District-One-Factory (1D1F) Initiative continued to make remarkable progress in 2022.
To date, a total of 296 1D1F projects are at various stages of implementation, out of which 126 are currently operational, 143 are under construction, and 27 are pipeline projects.
In 2023, Government will intensify support to existing and new manufacturing enterprises with technical assistance, credit facilitation, and access to electricity and other infrastructure.
Automotive Assembly Programme Mr Speaker, in addition to the Automotive Assembly Programme, Government has developed a new Components Manufacturing Policy which seeks to support the local production and supply of components and spare parts for the automotive industry.
The Ministry of Trade and Industry will launch and commence implementation of the policy in 2023 which is expected to expand job creation.
Promotion of Organic Fertilizer Mr Speaker, the recent global crisis has severely disrupted inorganic fertilizer supply chains.
This has resulted in sharp increases in prices making it difficult for farmers to access the commodity and thus threatening food security.
The Ministry of Food and Agriculture is intensifying efforts to promote the local production and use of organic fertilizers.
Further to this, under the subsidy programme, the Ministry has increased the quota for organic fertilizer suppliers to cover the shortfall in supply of inorganic fertilisers.
Additionally, Government is facilitating the establishment and expansion of local organic fertilizer production plants with support from the EXIM Bank.
African Continental Free Trade Agreement (AfCFTA) Mr Speaker, we will pursue strategically, opportunities that ensure that we take full advantage of the African Continental Free Trade Agreement (AfCFTA) as part of efforts to pursue an export-led economic recovery.
The Ministry of Trade and Industry is working with over 200 Ghanaian companies to facilitate their entry into the African market including about 70 1D1F companies.
Additionally, the AfCFTA Guided Trade Initiative (GTI) has been launched to start commercially meaningful trade.
The products identified for the Initiative include batteries, tea, coffee, ceramic tiles, processed meat products, corn starch, sugar, and pasta, amongst others, in line with the AfCFTA focus on value chain development.
Mr Speaker, the Ghana Export Promotion Authority will enhance its coordination role by facilitating support to key export-sector stakeholders.
Export Trade Houses (ETHs) will be established in selected markets to promote made-in-Ghana products brands, including the completion of the first ETH in Kenya.
Additionally, opportunities will be created for local Ghanaian businessmen and investors to invest in export product transformation and value addition at the district level in partnership with the Ministry of Local Government and Rural Development.
Development Bank Ghana Mr Speaker, Government through the Development Bank Ghana (DBG) has established a GH¢500 million special credit programme: the DBG Emergency Economic Programme (DEEP) to support businesses in the agribusiness value chain over the next five years.
The priority sectors are Poultry, Rice & Cereals, Pharmaceutical manufacturing, Tourism, Textiles & Garments for investments to help build economic resilience.
Mr Speaker, to support SMEs with equity funding, DBG is also in the process of establishing a private equity fund with an initial capitalization of about GH¢400m (US$30m).
DBG has fully onboarded four Participating Financial Institutions (PFIs) and will engage other financial institutions to expand its loan channels.
A total of seven loans amounting to GH¢ 245,322,000.00 was disbursed to SME’s saving over 1,000 jobs.
DBG has partnered with a PFI to build a digital lending platform to shorten the processing time for lending to SMEs and increase its ability to reach a lot more businesses across the country.
Ghana Agricultural Insurance Pool (GAIP) Mr Speaker, the National Insurance Commission, is spearheading the development of agricultural insurance for farmers through the Ghana Agricultural Insurance Pool (GAIP).
GAIP provides traditional agricultural insurance and index-based weather insurance products to commercial farmers and small-holder farmers.
An estimated USD$400 million in agricultural insurance will be extended to eligible farmers in 2023.
EXPANDING INFRASTRUCTURE DEVELOPMENT Mr Speaker, as part of the effort to ensure power is affordable for industrial, commercial and residential use, Government has substantially completed a renegotiation and restructuring exercise of Power Purchase Agreements (“PPAs”) with 6 operational Independent Power Producers (“IPPs”), namely, Karpower, Cenpower, Early Power, Twin City Energy (formerly Amandi), AKSA Energy and CENIT Energy.
Government has also pursued cost-cutting and green initiatives, including conversion to a tolling model, refinancing of expensive debt, profiling of tariffs and switching power plants from imported liquid fuel to locally produced natural gas as the primary fuel.
On connectivity to the national grid, a total of 157 communities were linked to the national grid as of September 2022.
The Ministry of Energy will further connect an additional 400 towns under the SHEP-4, SHEP-5 and Turnkey Projects in 2023.
The Coastal Fishing Ports And Landing Sites Redevelopment Project Mr Speaker, substantial progress has been made in the development of 12 coastal fish landing sites and 2 fishing ports along the coast of Ghana namely, Axim and Dixcove in the Western Region, Moree, Mfantsiman, Ekumfi, Mumford, Winneba, Senya Beraku, Gomoa Feteh and Elmina, in the Central Region, Teshie, Osu and James Town in the Greater Accra Regions and Keta in the Volta Region.
Mr Speaker, overall, the project is about 95 per cent complete and will ensure the safe launching and landing of artisanal fishing canoes and promote hygienic environmental conditions.
Climate Change Mr Speaker, global warming poses major threats to the economies of climate-vulnerable countries like Ghana.
According to the Vulnerable Twenty (V20) Loss and Damage Report, Ghana lost $15.20 billion from 2000 to 2019 to climate change.
According to the World Bank Group’s new Country Climate and Development Report (CCDR) for Ghana, incomes could reduce by up to 40% for poor households by 2050, if urgent climate actions are not taken.
At COP27, the Government took the opportunity to leverage its bilateral engagements to expand consultations on debt-for-nature swaps as well as increased private sector investments to accelerate our transition to low carbon growth and finance our climate action measures.
Mr Speaker, I can report that Ghana has assumed the Presidency (from 2022 to 2024) of the Climate Vulnerable Forum (CVF) and Chair of the Vulnerable Twenty (V20) Group of Ministers of Finance.
Government will leverage this opportunity to accelerate our climate agenda which is outlined in Ghana’s Climate Prosperity Plans.
SOCIAL PROTECTION Mr Speaker, even amidst the current difficulties, we remain committed to implementing Ghana’s social protection programmes.
We will not renege on our responsibilities towards the vulnerable and socially excluded and the implementation of our various social protection programmes will be expanded.
Livelihood Empowerment Against Poverty (LEAP) Mr Speaker, the Livelihood Empowerment Against Poverty (LEAP) Programme has since its inception in 2008, supported extremely poor and vulnerable households; increasing beneficiary coverage from 143,552 in 2015 to 344,389 households comprising 1,827,035 individuals as of September 2022.
Government is committed to expanding coverage to all 2,500,000 extremely poor individuals as estimated by the Ghana Living Standards Survey (GLSS 7) by 2024.
While improving efficiency through digitalisation and assessment, Government will, in 2023, increase the value of the LEAP grant from the average of GHC 41.75 per household to GH¢95.19 bi-monthly.
Ghana School Feeding Programme (GSFP) Mr Speaker, the Ghana School Feeding Programme (GSFP) which provides one hot nutritious meal each day for 3,448,065 beneficiary pupils in public basic schools as of December 2021 will be sustained.
In 2023, the feeding grant will be increased to reflect the current cost of living.
The programme will also strengthen domestic production by sourcing locally produced food from the National Buffer Stock company.
Capitation Grant Mr Speaker, Government abolished the charging and payments of all forms of fees/levies in all public basic schools and replaced them with the capitation grant in 2005.
This has contributed to steady increases in enrollment over the years.
Mr Speaker, Government will continue to strengthen monitoring to address teething challenges in the implementation of the policy which include; timely release of the grant, misuse of funds, transparency and poor bookkeeping and value of grant amount.
EXPANDING INFRASTRUCTURE Mr Speaker, in fulfilment of Government’s commitment to improving the road infrastructure, the Ministry of Roads and Highways continued its Nationwide Road and Bridge Construction Programme.
Works on the La Beach Road Project and the construction of a 3-tier interchange at Nungua Barrier are progressing steadily.
Works on the interchange currently stand at 62 per cent.
Construction of the Kumasi Lake Roads and Drainage Extension project is almost complete and stands at 97 per cent.
Work is ongoing on the 17.85 km Ofankor Nsawam dual carriage road which is scheduled to be completed in May 2024 Mr Speaker, dualisation on the Tema – Aflao and the Tema – Akosombo roads has commenced.
Works are ongoing on the rehabilitation of Assin Fosu – Assin Praso road including the dualisation of 1.2km of Assin Fosu township roads into a 4-lane carriageway is at 53 per cent.
Additionally, works on the reconstruction of Bechem – Techimantia – Akomadan and Agona Nkwanta – Tarkwa roads are at 21 per cent and 7 per cent completion, respectively.
Works on Phase II of the Obetsebi Lamptey Circle Interchange and ancillary work is at 71 per cent completion.
Additionally, construction of the Flyover over the Accra-Tema Motorway from the Flower Pot roundabout is 56 per cent complete.
Mr Speaker, to improve connectivity within areas cut off by waterways, work on the construction of 50No.
prefabricated bridges continued in 2022.
Progress of the new bridge being constructed over River Pra to separate vehicular traffic from the rail along the Twifo Praso-Dunkwa road is at 87 per cent completion.
Mr Speaker, the Critical Regional and Inter-Regional Road Projects initiated in 2019 are at various stages of completion.
Completed projects include: ● Upgrading of Golokwati-Wli Road; ● Upgrading of Nsuta – Beposo, Lot 3; ● Rehabilitation of Nkonya Wrumpong - Kwamikrom; ● Partial Reconstruction of Bawjiase - Adeiso; and ● Resealing of Tamale - Salaga Road - Lot.
Progress on the following roads, among other, have achieved significant progress: ● Upgrading of Navrongo - Naga Road ● Upgrading of Wa-Bulenga-Yaala Road ● Upgrading of Salaga - Ekumdipe - Kpandai Road ● Kpandai - Nkanchina Road (10.8km) ● Rehabilitation of Atebubu – Kwame Danso Roads ● Upgrading of Anwiankwanta – Obuasi Road ● Rehabilitation Of New Abirem – Ofoasekuma Road ● Upgrading of Sefwi Wiawso - Akontombra Road ● Upgrading of Akrodie - Sayereso Road ● Rehabilitation of selected roads in Greater Accra.
Mr Speaker, contract works under the Master Project Support Agreement (MPSA) with Sinohydro Corporation Limited are stages of completion: ● Tamale Interchange Project (100%) ● Western Region and Cape Coast Inner City Roads (100%) ● Upgrading of Selected Feeder Roads in Ashanti and Western Regions (100%) ● Construction of Hohoe-Jasikan–Dodi-Pepesu (100%) ● PTC Roundabout Interchange Project, Takoradi (60%) ● Sunyani Inner City Roads (63%) ● Kumasi Inner City Roads (10%) Mr Speaker, in 2023, a number of pipeline projects which are at various stages of preparation will be pursued.
These include: ● Construction of Accra – Kumasi Road: Anyinam Bypass; ● Construction of Accra – Kumasi Road: Konongo Bypass; ● Construction of Adidome – Asikuma Junction and Asutsuare – Aveyime including 2No.
interchanges at Dufor Adidome and Asikuma Junction; ● Kasoa – Cape Coast Dualisation; ● Dualization of Sekondi and Adiembra Roads; ● Takoradi -Agona-Nkwanta- Apemanim ● Construction of Bridge over the Volta River at Volivo; ● Buipe, Yapei and Daboya Bridges; ● Adawso-Ekyi Amanfrom Bridge; and ● Dikpe, Iture and Ankobra Bridges.
Road Financing Mr.
Speaker, Government is pursuing the strategic decision to procure the 27.7km of the Accra-Tema Motorway and Extensions Project through the Ghana Infrastructure Investment Fund (GIIF).
A PPP Concession Agreement backed by an appropriate toll arrangement will be presented to Parliament for approval to facilitate its execution.
Provision has also been made in the 2023 and the Medium-Term Budget for the Equity and Viability Gap Funding required by a GIIF Special Purpose Vehicle (SPV) to enable the project to start in earnest in 2023.
The project will be delivered in phases.
Mr Speaker, the iconic nature of the project is such that when completed, there will be five lanes each on both sides of the main Accra-Tema Motorway stretch, and six lanes each on the Tetteh Quarshie – Apenkwa stretch of the road.
The project will include the remodelling of the Tetteh Quarshie Interchange, the reconstruction of the Apenkwa Interchange and the construction of new interchanges at the Fiesta Royale crossroads and Neoplan area.
Debt Exchange Programme Mr Speaker, the Debt Sustainability Analysis (DSA) based on the macroeconomic outlook has been conducted by the Ministry of Finance.
It analyzes the country’s capacity to finance its policy objectives and service its debts.
It covers public, publicly guaranteed debt of central government and partial non-guaranteed debt of SOEs.
The sustainability of our debt has been continuously affected by the negative impact of exchange rate depreciation, particularly on external debt, as well as the crystallization of significant contingent liabilities in recent years.
The current debt sustainability analysis conducted reveals that Ghana is now considered to be in high risk of debt distress.