ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
Speaker, the higher expenditure, together with the lower revenue outturn, resulted in an overall budget deficit on commitment basis of GH¢72.19 billion (11.8% of GDP), compared to the 2022 Mid-Year Review target of GH¢37.00 billion (6.3% of GDP) and the projected outturn of GH¢60.93 billion (9.9% of GDP).
Speaker, the corresponding Primary Balance (on commitment basis) for the period was a deficit of GH¢26.51 billion (4.3% of GDP) compared to the 2022 MidYear Review target of a deficit of GH¢4.36 billion (0.7% of GDP) and the projected outturn of a deficit of GH¢16.92 billion (2.7% of GDP).
Petroleum Revenue and Utilisation for 2022 77.
Speaker, total petroleum receipts (i.e.
proceeds from liftings and other petroleum receipts) as of December 2022, amounted to US$1.43 billion.
This amount comprises receipts from: the 63rd to the 68th liftings from the Jubilee field; the 20th and 21st liftings from the Tweneboa Enyenra Ntomme (TEN) field; and the 9th, 10th and 11th liftings from the Sankofa-Gye Nyame (SGN) field.
In addition to the total receipts for the year under review, petroleum receipts that spilled over from 2021 to 2022 was US$14.82 million bringing the total amount distributed to US$1.44 billion.
This compares with the amount distributed of US$808.61 million for the same period in 2021.
A total of US$581.52 million was transferred into the Ghana Petroleum Funds (GPFs) in 2022, compared to US$227.49 million in 2021.
Out of the amount transferred, the Ghana Heritage Fund (GHF) received US$174.46 million, against US$68.25 million in 2021, while the Ghana Stabilisation Fund (GSF) received US$407.06 million, compared to US$159.24 million in 2021.
The total amount transferred in 2022 from petroleum liftings and related proceeds to the Annual Budget Funding Amount (ABFA) was US$526.31 million compared to US$352.79 million in 2021.
Update on Public Debt Developments for 2022 81.
Speaker, as at end-December 2022, Ghana’s central government debt and guaranteed debt in nominal terms stood provisionally at GH¢435,306.45 million, up from GH¢351,787.00 million at end-December 2021, representing an increase of 23.7 percent.
Using the revised GDP released by the Ghana Statistical Service in April 2023, the debt-to-GDP ratio as at end-December 2022 stood at 71.3 percent.
Speaker, the composition of the total debt stock was made up of a provisional amount of GH¢240,919.57 million, equivalent to 39.5 percent of GDP and GH¢194,386.89 million, equivalent to 31.8 percent of GDP for external and domestic debt, respectively.
Update on Domestic Macroeconomic Developments in 2023 84.
Speaker, I now proceed to update the House on the performance of the economy since January 2023 and the reason why there is a consensus that we are turning the corner.
Available data indicates that: i. Overall first quarter growth for 2023 was 4.2 percent, up from 3.0 percent recorded for the same period in 2022.
This growth largely reflected an increase in the Services Sector which recorded a growth of 10.1 percent; ii.
Headline inflation eased in the first half of 2023.
From the peak at 54.1 percent in December 2022, headline inflation gradually trended downwards from 53.6 percent in January 2023 to 42.5 percent in June 2023.
The moderation in inflation was largely supported by monetary policy tightening, relative stability in the exchange rate and lower and stable ex-pump petroleum prices; iii.
Cumulatively, the Ghana cedi depreciated by 22.1 percent against the US Dollar in the year to July 17, 2023, compared to 21.1 percent in the same period in 2022.
The Cedi, excluding the January, 2023 depreciation of 20%, has depreciated by an impressive 1.84% between February and July 17, 2023; 17 iv.
Total export receipts fell by 7.9 percent to US$8,178.56 million on the back of lower crude oil exports receipts.
Crude oil exports declined by 41.3 percent yearon-year due to a 21.4 percent decline in volumes and 25.3 percent fall in prices; v. Current account recorded a provisional surplus of US$849.16 million (1.1% of GDP) compared with a deficit of US$1,111.87 million (1.5% of GDP) for the same period in 2022; and vi.
Gross International Reserves dropped from US$6.2 billion at the end of December 2023 to US$5.3 billion (2.5 months of import cover) in June 2023, reflecting BOG’s objectives of reducing their foreign liabilities in line with the IMF programme.
Net International Reserves received a boost from gold reserves and improved to US$2,353.95 million equivalent to 1.1 months of import cover, compared with US$1,440.00 million (0.6 months of import cover) recorded at the end of December 2022.
Banking Sector Developments and Outlook 85.
Speaker, the banking sector posted unexpected, relatively strong performance during the first half of the year, despite the lingering effects of the DDEP.
The Banks have reported increased deposits and investments, higher profitability and a return on equity of over 35 percent.
The impact of the DDEP, such as the increase in nonperforming loans (NPLs), was partly moderated by the timely introduction of temporary regulatory reliefs.
In the outlook, the operationalisation of the US$750 million Ghana Financial Stability Fund and the planned recapitalisation of banks would ensure stability as well as strengthen financial intermediation to support the private sector.
2023 Half Year Fiscal and Debt Developments Summary of Fiscal Performance for Half Year 2023 86.
Speaker, the provisional data on Government fiscal operations for the first half of 2023 indicate: i. a slower pace in expenditure execution relative to revenue shortfall, resulting in an overall budget deficit on commitment basis of GH¢6.3 billion (0.8% of GDP), compared to the 2023 H1 Budget deficit target of GH¢28.3 billion (3.5% of GDP); ii.
a corresponding Primary balance (on commitment basis) of a surplus of GH¢8.8 billion (1.1% of GDP), compared to the target of a surplus of GH¢310 million; iii.
overall cash deficit of GH¢10.3 billion (1.3% of GDP), against the 2023 H1 Budget target of GH¢35,494 million (4.4% of GDP); and iv.
a corresponding primary balance (on cash basis) of a surplus of GH¢4,804 million (0.6% of GDP), against the 2023 H1 deficit target of GH¢6,908 million (0.9% of GDP).
We are back on track to a positive Primary Balance.
Speaker, the fiscal balances, are driven by: i. Total Revenue and Grants for the first half of 2023 of GH¢59.3 billion (7.4% of GDP), 8.4 percent below the target of GH¢64.7 billion (8.1% of GDP).
Despite the shortfall, the outturn shows a nominal y/y growth of 41.8 percent.
The key driver of the revenue deviation is the lower-than-programmed oil receipts; and ii.
Total Expenditure of GH¢68.5 billion (8.6% of GDP), 26.3 percent below the programmed expenditure of GH¢92.9 billion (11.6% of GDP).
All other expenditure lines were contained within their respective targets for the period except for Compensation of Employees and Expenditure on Goods and Services.
The higher-than-programmed Compensation of Employees outturn stems from higher payments for wage and salaries from the implementation of the 30 percent Base Pay increase for Public Sector Workers which was agreed to after the 2023 Budget was presented and approved by this august House last year.
We need to protect our workers.
Update on 2023 Revenue Measures 88.
Speaker, Government introduced several revenue measures to support the fiscal consolidation and growth agenda.
The policy interventions were specifically targeted at growing the revenue base to yield an estimated 1.35 percent of GDP.
The MoF and GRA are working together to ensure the realization of the full yield in the near future, through enhanced collection efforts, governance, and E-VAT implementation.
Public Debt Developments for January -June 2023 89.
Speaker, arising from the DDEP, several structural changes have commenced in the reporting of Ghana’s debt data.
The debt from the Special Purpose Vehicles, which previously was not part of the Central Government debt, has now been included.
Furthermore, we would be including the long term debt of selected SOEs such as COCOBOD and contingent liabilities arising from IPPs-PPAs and financial sector recapitalisation.
MACRO-FISCAL OUTLOOK FOR SECOND HALF OF THE YEAR 90.
Speaker, the macroeconomic environment has changed significantly since the 2023 Budget was presented to this august House in November 2022.
Speaker, although pressures still exist, and there are formidable risks in the horizon, our economy is in a better position than it was seven months ago as the macroeconomic environment has seen relative stability since the beginning of the year.
This is largely explained by factors, including the positive sentiments following the Staff Level Agreement reached in December 2022 and the subsequent approval of the 3-year US$3.0 billion IMF-ECF; the eventual passage of all fiscal measures in the 2023 Budget; the completion of the DDEP; and China’s agreement to co-chair the OCC.
Speaker, I have also discussed the significant improvements in the key macroeconomic indicators, including inflation, exchange rate, interest rates, reserve position, growth rate and the performance of the Banks since December 2022.
Revision to 2023 Macroeconomic Framework 94.
Speaker, all these developments, together with the need to align with the targets of the IMF-supported PC-PEG, warrant a revision to the macroeconomic framework.
This was necessary because the framework was guided by the September, 2022 data, that underpinned the 2023 Budget in November, 2022.
The revisions to the macro-fiscal framework generally seek to align the 2023 Mid-Year Fiscal Policy Review with the IMF-ECF supported PC-PEG.
Speaker, key revisions to the macro-fiscal targets for 2023 year include: i. Overall Real GDP Growth rate of 1.5 percent down from 2.8 percent; ii.
Non-Oil Real GDP Growth rate of 1.5 percent down from 3.0 percent; iii.
End-period headline inflation of 31.3 percent, from 18.9 percent; iv.
Primary Balance on Commitment basis of a deficit of 0.5 percent of GDP compared to a surplus of 0.7 percent of GDP, aligning with IMF-supported PC-PEG target Primary balance; v. Gross International Reserves (programme definition) sufficient to cover at least 0.8 months of imports of goods and services by 2023.
20 Revisions to GDP Projections 96.
Speaker, the overall Real GDP growth for 2023 has been revised to 1.5 percent from 2.8 percent, and non-oil Real GDP growth has also been revised to 1.5 percent from 3.0 percent.
The downward revision in projected growth for 2023 is an indication of a broad slowdown in the three sectors of the economy as a result of factors such as the fiscal consolidation plan and difficult global conditions.
Speaker, overall GDP Growth is, however, projected to rebound to 2.8 percent, 4.7 percent, and 4.9 percent in 2024, 2025 and 2026, respectively.
This is a result of implementation of growth-oriented and structural transformation strategies in the PC-PEG.
We have, however, been charged in the PC-PEG to develop an enhanced Growth Strategy supported by crowding in of private domestic and foreign investments to further boost growth.
We are confident of a private sector outlook to boost growth and jobs.
Revisions to the 2023 Fiscal Framework 98.
Speaker, the 2023 revised fiscal framework is now fully aligned with the IMF programme fiscal objectives in terms of primary balance (cash and commitment), revenue path, and trajectory of primary expenditures.
The drivers of the revisions to 2023 Fiscal Framework includes: i. Fiscal developments for Jan-June 2023 reflecting shortfalls in revenues and lower spending; ii.
Increase in base pay on Single Spine Salary Structure of 30 percent compared to the assumed 20 percent for the 2023 Budget; iii.
Partial restoration of capped transfers to the NHIS and GETFund; iv.
The impact of the completed Domestic Debt Exchange Program (DDEP) on debt service cost as well as on revenue mobilisation; v. IMF ECF Programme disbursements for 2023 of US$1.2 billion and reflection of other catalytic financing including the World Bank US$530 million (DPO - US$300 million and Emergency Projects - US$230 million) and expected disbursements of US$103mn from the AFDB; vi.
Revision in exchange rates, interest rates, crude oil prices, crude oil volumes, and GDP projections; and vii.
The need to align 2023 Mid-Year Review to the approved IMF-supported PC-PEG.
These realignments in the 2023 fiscal framework results in a revised primary balance on commitment basis of a deficit of 0.5 percent of the revised GDP.
This is an adjustment of 3.2 percent from 3.7 percent of GDP, lower than the initial target of a 21 surplus of 0.7 percent of GDP set in the 2023 Budget.
This aligns with the IMFsupported PC-PEG fiscal consolidation path.
Revisions to Petroleum Revenues 100.
Speaker, at the time of presenting the 2023 Budget, a Benchmark Revenue crude oil price of US$88.55 per barrel was used to project petroleum revenues for 2023, in line with provisions of the Petroleum Revenue Management Act (PRMA) 2011, (Act 815) as amended.
Recent global economic developments have led to a decreased demand for crude oil.
Therefore, consistent with Section 7 of the Petroleum Revenue Management (Amendment) Act 2015, (Act 893), the average crude oil price has been revised to US$74.0 per barrel down from the price of US$88.55 per barrel used in the 2023 Budget.
Accordingly, the total petroleum receipts have been revised downwards from US$1,484.47 million to US$1,008.65 million, representing a 32 percent decline.
PERFORMANCE OF GOVERNMENT INITIATIVES IN THE 2023 BUDGET 102.
Speaker, in the 2023 Budget, Government outlined a series of measures to mitigate the impact of the severe economic challenges and also to preserve growth.
These include the implementation of flagship programmes, such as One District One Factory, Planting for Food and Jobs (PfJ) - Phase II, Strategic Anchor Industries, Infrastructure for Poverty Eradication Programme (IPEP), GhanaCARES, YouStart, Agenda 111, among others.
Speaker, within the context of our IMF-backed PC-PEG, these interventions assume greater significance in promoting growth and medium-term fiscal consolidation.
In addition, as stated earlier, we are pursuing a social protection agenda to mitigate the impact of adjustment on the vulnerable.
One District One Factory 105.
Speaker, in line with Government's unwavering commitment to industrialisation, the implementation of the flagship One District One Factory (1D1F) Initiative is on course.
As of June, 2023, 126 factories were operational nationwide.
Over 160,000 direct and indirect jobs have been created, especially for the youth who have been mobilised to establish agro-processing factories in 58 districts.
22 Ghana Priority Health Infrastructure Projects - Agenda 111 106.
Speaker, Government initiated the Agenda 111 to address infrastructure deficit in the health sector and improve healthcare outcomes in the country.
As at May 2023, total payments under the programme stood at US$189.34 million, with 83 active project sites in all 16 regions of the country.
Agriculture and Food Security 107.
Speaker, Planting for Food and Jobs has brought substantial improvements in Ghana’s agriculture sector.
This has resulted in increased food security, employment along agricultural value chains, and accessibility of raw materials for developing industries.
The programme has directly contributed to increased crop yields for major food staples such as maize, rice, and soya by 135 percent, 67 percent and 18 percent respectively within the period.
After a comprehensive review, Government is finalising PfJ Phase II to ensure a more efficient and targeted support for the agricultural sector.
The key elements of Phase II are Inputs Credit System, Storage and Distribution Infrastructure, Commodity Trading and Digitised Platform.
The GhanaCARES “OBAATAN PA” programme 109.
Speaker, I can report that efforts toward promoting commercial agriculture, building technological capability, and advancing digitalisation under the GhanaCARES programme are on track.
Last year, I indicated that Government is spearheading the Economic Enclaves Project (EEP) to establish ‘growth poles’ in key locations including Kasunya (Greater Accra), Kumawu (Ashanti) and Banda (Oti Region).
The approach under the EEP is to provide agriculture infrastructure and land development support to our entrepreneurial youth and the formal private sector.
Speaker, to enhance production and value-addition in the enclaves, the provision of ancillary services such as housing, training facilities, irrigation canals, farm roads, and electricity have also commenced.
Speaker, it is gratifying to note that the domestic private sector has responded positively to the provision of these services.
About ten (10) medium and large-scale enterprises with experience in the commercial agriculture space have applied to play diverse roles, ranging from anchor farmers to machine and equipment services, in the EEP site in Kasunya.
Speaker, in partnership with the National Service Scheme, about 20,000 acres of land in Sekyere Kumawu in the Ashanti region, is being developed to accelerate maize, tomato, groundnuts and animal production.
Speaker, Government expects that by end-2023, the EEP will have: i. Fully seeded 7,500-acres of rice, on-boarded qualified private sector entrepreneurs as anchor farmers, embarked on value chain activities such as rice milling and packaging in Kasunya; and ii.
Developed and seeded 1,500 acres of lands in Kumawu and Banda (Oti Region) respectively and also engaged private sector partners in these Enclaves.
With these efforts, Mr.
Speaker, we expect to gradually drive down the food component of inflation, create jobs for our youth, improve food security and reduce the volatility on the forex market.
YouStart 116.
Speaker, to equip participants with entrepreneurial skills, investment readiness tools as well as coaching and mentoring services under the YouStart initiative, 26,626 persons nationwide have received business advisory support services since its launch last year.
We will continue to work with Participating Financial Institutions, National Entrepreneurship and Innovation Programme (NEIP) and Ghana Enterprises Agency (GEA) to provide soft loans and managerial skills for the setting-up of youth-led enterprises.
National Entrepreneurship and Innovation Programme 118.
Speaker, the National Entrepreneurship and Innovation Programme, with support from the Ghana Economic Transformation Project (GETP), launched the Hubs Acceleration Grant Programme in April 2023.
The programme has supported 30 Business and Innovation Hubs with grants to resource start-ups in communities nationwide.
Each Hub has received up to USD$180,000 and is required to resource 20 start-ups.
In the second half of the year, 15 new Hubs will be supported to set up across the Country.
Tourism and Creative Arts 120.
Speaker, to make Ghana the Tourism Hub for the West Africa, the Domestic & Regional Tourism Campaign, dubbed “Experience Ghana, Share Ghana” was intensified across the country by Government.
Our goal is to complement this campaign, the Kwame Nkrumah Memorial Park, which was redeveloped and modernised with support from the World Bank and other development partners, was commissioned by President Akufo-Addo on 4th July, 2023.
The redeveloped park will boost domestic and heritage tourism and is expected to attract over 1 million tourists annually.
Government will continue with the redevelopment of Aburi Botanical Gardens, Salaga and Pikworo Slavery Camps and Yaa Asantewaa Mausoleum to boost domestic tourism.
Furthermore, in partnership with the Ghana Museums and Monuments Board (GMMB) efforts will continue to renovate selected Forts, Castles and Museums across the country.
Speaker, Government will work closely with the private sector to improve key tourist sites and events as part of the Beyond the Year of Return initiative.
We have made considerable progress towards achieving 1.2 million visitors for 2023 with 150,000 jobs along the value chain, and 2 million foreign visitors and 1.5 million in domestic tourism by 2025.
Road, Interchange and Bridge Infrastructure 124.
Speaker, to improve mobility and accessibility, as well as safety along major trunk roads, the following projects are at various stages of completion: i. Works on the 31.2km Assin Fosu-Assin Praso portion of the National Trunk Road N8 (Phase 2) - was completed and commissioned in June 2023; ii.
Accra-Tema Beach Road (Lot 1 and Lot 2) - 79 percent and 89 percent complete respectively; iii.
Construction of a 3-tier interchange at Nungua Barrier - is ongoing; iv.
Development works on the Kumasi Lake Road and Drainage Extension project - is 98 percent complete; v. Selected Roads in Sekondi and Takoradi Phase 1 - is 21 percent complete; vi.
Tema-Aflao road - is 30 percent complete; vii.
Nsawam-Ofankor road - is 26 percent complete; viii.
Reconstruction of Bechem-Techimantia-Akomadan road - is 64 percent complete; ix.
Reconstruction of Agona Nkwanta-Tarkwa road - is 34 percent complete; x. Phase 2 of the Obetsebi Lamptey Circle Interchange and other ancillary works - is 86 percent complete as at June 2023; xi.
Construction of a 4-tier interchange at Suame in the Ashanti Region - has commenced; xii.
Construction of 50 prefabricated bridges in all sixteen regions continued in 2023 and are 86 percent complete as at end June; xiii.
Design, fabrication and delivery of 87 No.
steel panel bridges - is ongoing, with 45 bridges delivered; and xiv.
New bridge under construction at Twifo Praso to separate vehicular traffic from the railway line - is 93 percent complete.
Government will embark on a community roads improvement programme to increase productivity and facilitate the transportation of food crops.
Districts Assemblies will be given complementary equipment to ensure that their local roads are motorable through-out the year.
Speaker, these notwithstanding, Government remains committed to improving road infrastructure in line with the fiscal consolidation plan in the IMF-backed PCPEG and in partnership with the private sector.
Speaker, the Road Sector’s Public Private Partnerships (PPP) programme for the financing, construction and management of road infrastructure has two projects at different stages of preparation: i. Phase 1 of the Accra-Tema Motorway Extension Project (31.7km) involves the reconstruction of the Motorway.
The Concession Agreement and draft Engineering Procurement and Construction (EPC) agreement have been finalised and will be laid in this House.
The Development of Tema Arterial Roads will be structured on a PPP basis using the Build Operate and Transfer (BOT) model.
The appraisal of the project is ongoing.
Fisheries Resource Management Programme 128.
Speaker, civil works on Phase 1 of the Anomabo Fisheries College project is complete and enrolment and training of students will commence by the end of the year.
As part of efforts to prevent diversion and hoarding of premix fuel which results in acute shortages, 37 out of a target of 50 premix automated vending machines 26 were installed in various landing beaches at Elmina, Chorkor and Nungua among others.
Government will install the remaining 13 automated vending machines by end of the year at various landing beaches across the country.
Government has also piloted the use of electronic monitoring systems on trawlers to help check illegal, unreported and unregulated fishing practices.
Infrastructure for Poverty Eradication Programme 131.
Speaker, under the Infrastructure for Poverty Eradication Programme, Government continues to embark on strategic investments across our communities nationwide in line with the fiscal consolidation plan.
Through the Development Authorities, approximately 340 projects have been completed and accordingly handed over to the beneficiary communities.
The remaining 297 projects are at different stages of completion.
Export Promotion and AfCFTA 132.
Speaker, as part of our effort to take full advantage of AfCFTA, Government has established an Export Trade House in Nairobi, Kenya to promote made-inGhana products and services.
We have also undertaken a marketing expansion expedition to Kenya with 63 Ghanaian companies to introduce them to the East African market.