Finance Minister, Seth Terkper, has presented the 2016 budget statement to parliament, where he revealed plans to tighten government expenditure going into an election year during which previous governments have overspent their budgets.
According to Mr Terkper, “The President has assured of sustaining fiscal discipline despite 2016 being an election year. Whilst investing prudently in infrastructure development, we will resist the temptation of election year overspending.”
Below are some highlights of the statement read today in parliament….Click here to download the full 2016 budget document.
Macroeconomic performance in 2015
GDP growth rate of 4.1 percent
Inflation remains high at 17.9 percent.
Fiscal performance in 2015
Debt currently stands at GH¢92.2 billion or US$ 29 billion.
Annual balance GH¢9.7 billion 7.3 percent of GDP
Grants were GH¢ 17 billion against a target of GH¢ 29 billion.
Total Revenue Expectations for 2016
GH¢38 billion in total revenue which is 18.2 percent increase on 2015
Non petroleum targets are GH¢36 billion which represents 24.1 percent of the total revenues and represents 17.4 percent increase.
Macroeconomic Forcasts for 2016 to 2017…….
GDP targets will be 5.4 percent of oil GDP, and 5.2 non- oil GDP.
10.44 percent inflation deficits
Forcasts of 2017 to 2018
Oil GDP growth targets of 8.2 percent, and non-oil 6.9 percent
3 percent inflation deficit
Ghana to add 845 Megawatts of electricity to the national grid
National Identification Program comes back in 2016
Primary Data Training Centers for Sunyani Poly, University of Ghana, University of Cape Coast, KNUST and St. Theresa’s Training College.
Ghana to work ECOWAS external tax tarriffs to further improve trade across the ECOWAS sub-region
Drivers and Vehicle Licensing Agency (DVLA), Energy Commission, Environmental Protection Agency, Security and Exchanges Commission and Data Protection Commission, would be weaned off government support to lessen burden on government expenditure.