The Minister of Finance, Mr Ken Ofori-Atta is expected to present the Mid-Year Review of the Budget Statement and Economic Policy of the Government of Ghana and Supplementary Estimates for the 2022 Financial Year.
The Finance Minister in his recent comment said Government’s transformation agenda is on course, described the implementation of the 2021 Budget as successful so far and pronounced that Ghana’s export hit USD 7.6 billion by June 2021.
He said the relatively strong performance of the external sector led to an increase in the reserves position to USD 11.0 billion, equivalent to 5.0 months of imports, one of the highest on record compared well with a reserved position of USD 9.2 billion, equivalent to 4.3 months imports cover, in the corresponding period last year.
He insisted that the finances of the country are being managed by Government with discipline and competence and that the Government recognizing that more need to be done has put in place a “One Million Jobs Initiative” to aggressively respond to the needs of the country.
The 2021 Budget introduced a Covid-19 Health Levy of a one percentage point increase in the National Health Insurance Levy (NHIL) and a one percentage point increase in the VAT Flat Rate to support expenditure related to Covid-19 but the review did not see any new taxes introduced.
The Minister highlighted the state of the implementation of Ghana CARES “Obaatanpa” Programme that seeks to revitalise and transform the economy to pre-Covid-19 times and touched on the assurance of the government on securing Covid-19 vaccines for vaccination and effective domestic revenue mobilisation initiatives.
He said the “Ghana CARES Obaatan Pa” Programme is a GHS 100 billion development initiative designed by the government to mitigate the economic challenges brought on by the Coronavirus pandemic.
Ken Ofori Atta further provided the economic and fiscal performance of the economy for the first half of the year and an update on strategies by the Government to create employment for Ghanaians in general and the youth in particular.
Economics Lecturer at the University of Ghana, Dr Adu Owusu Sarkodie, has advised the government to use the mid-year budget review to send positive signals to the International Monetary Fund and the financial community that it is willing to adopt measures to put the economy back on track.
He said the government should also tell Ghanaians how the negotiations with the IMF have gone so far, and the kind of support the country needs from the IMF.
