The minister of finance, Ken Ofori- Atta is scheduled to present the 2024 budget and Financial Statement tomorrow, Wednesday, November 15, 2023, a statement from the Ministry of finance revealed.
This presentation aims to outline government’s strategies for revenue generation and policies to alleviate the current economic challenges faced by Ghanaians.
Speaker Alban Sumana Kingsford Bagbin, in his announcement on Tuesday, October 31, highlighted the importance of scrutinizing the budget to ensure it addresses the needs of all Ghanaians. He emphasized the need for a consultative and consensus-building approach during the process.
In anticipation of the budget presentation, the Institute of Statistical, Social and Economic Research (ISSER) has proposed a freeze on new tax exemptions for foreign companies in its recommendations for the 2024 Budget.
ISSER also suggested a review of tax exemptions for free zones and extractive industries, citing an annual loss of about ¢25 billion through tax exemptions.
Among indirect tax measures, ISSER proposed a reduction in the Electronic Transfer Levy rate from 1.5% to 1% of the transaction value and the elimination of the daily threshold.
Over the medium term, fiscal consolidation is expected to be the core element of
Government’s fiscal policy. The IMF-supported PC-PEG is expected to deliver a
Cumulative fiscal adjustment effort of 5.9 percentage points (ppts) of GDP between 2023 to 2026. Of this adjustment effort, a substantial amount of 3.9 ppts of GPD is expected to be achieved in 2023 with the remaining effort of 2.0
Ppts of GDP expected between 2024-2026. The annual fiscal adjustment path under the Programme shows a primary balance on a Commitment basis of a deficit of 0.5% of GDP in 2023, a surplus of 0.5% of GDP by 2024 and 1.5% of GDP by 2025-2026.
This requires a strong combination of carefully designed fiscal measures (revenue measures, expenditure efficiency and rationalization measures and prudent debt management strategies to restore fiscal and debt sustainability.
Focus of the 2024 Budget and the Medium-Term
Government, in line with the IMF-Supported PC-PEG, will continue to implement
Programmes aimed at restoring macroeconomic stability, achieving debt sustainability, fiscal consolidation, supporting structural reforms and promoting strong and inclusive growth, while protecting the poor and vulnerable.
The 2024 Budget will continue to restore and sustain macroeconomic stability; restore public debt sustainability; • pursue entrepreneurship and export-led growth strategy through diversification of the economy; implement reforms to encourage private investments, growth and job creation; strengthen social safety nets by mitigating the impact of economic adjustment on the most vulnerable; mobilize more domestic revenue and improve the efficiency of public spending.
It will also pursue deep structural reforms to address structural issues; • implement exchange rate policies to bolster market confidence and • implement a tight monetary policy regime to preserve financial stability.
For the 2024 financial year, Government will continue to prioritize the implementation of key government programmes in the area of social intervention such as Livelihood Empowerment Against Poverty (LEAP), Capitation Grant, Free SHS, Ghana School Feeding Programme, National Health Insurance Scheme (NHIS), amongst others Other growth interventions including promoting entrepreneurship to support private sector development and agriculture using initiatives such as YouStart, Ghana CARES and the Economic Enclave would also be implemented
