Monday, October 3, 2022

Finance Minister to present mid-year budget review today

Finance Minister Ken Ofori Atta will present the mid-year budget review in Parliament today Thursday, July 29, 2021.
The budget review complies with Article 179 of the 1992 Constitution and the Law on Management of the Public Finance 921, which presents an opportunity to modify macroeconomic goals and present a comprehensive economic perspective for the rest of the year.

This is generally based on entries and exits within the first six months of the year.

The government is expected to announce projects and plans to create 1 million jobs in the coming years.

The theme for this year’s budget review is “Achieving Economic Revitalization Through Completion, Integration, and Continuity,” which aims to carefully balance fiscal consolidation and promote economic recovery after the COVID19 pandemic.

Parliament approved 129 billion GHS for government services in the 2021 fiscal year. The main discussion point of the budget is to introduce some taxes that have been widely criticized by various stakeholders. Direct tax measures introduced include financial industry clean tax 5%, hotel industry corporate income tax rebate 30%, etc., and the payment of installment income tax and vehicle income tax stamp tax will be suspended from April to December.
The income tax exemption for capital gains arising from the realization of securities listed on the Ghana Stock Exchange in 2021 and after 2021.

Indirect taxation measures include a 5.7% increase in gasoline and diesel prices as part of the new taxation. The increase is due to the new 10 pesewa sanitation and pollution rate and the 20 pesewa rate to cover the country’s remaining energy capacity.
It also has a 1% COVID19 tax, which is 1 percentage point higher than the existing VFRS and the National Health Insurance Tax (NHIL).

The Minister of Finance stated that the taxes are necessary to finance the launch of the coronavirus vaccine and expand the general health infrastructure.
Fitch Ratings stated in its assessment at the time that the slow integration path outlined in the budget statement and the accompanying medium-term fiscal framework places Ghana in the face of a heavy debt service burden and the risk of a decline. fiscal.

Since then, Ghana’s debt stock has risen to GHS 332 billion, and debt accounts for 76.6% of GDP .

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