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Ghana to spend 12 bln USD in 2017 annual budget

Xinhua, March 3, 2017 Adjust font size:

The Ghanaian government went to parliament here on Thursday to seek approval for an expenditure of 56.5 billion Ghana cedis (11.89 billion U.S. Dollars) in the 2017 fiscal year.

Minister for Finance Kenneth Ofori-Atta told parliament that the expenditure estimates would result in an overall budget deficit of 13.3 billion cedis, equivalent to 6.5 percent of Gross Domestic Product (GDP).

"Mr. Speaker, total expenditure, including provision made for the clearance of arrears and outstanding commitments in 2017, is estimated at 56.5 billion Ghana cedis , equivalent to 27.8 percent of GDP," the minister announced.

According to him, this estimated expenditure for the year represents a 21.0 percent increase over the provisional outturn for 2016. Of this amount, 3.7 billion cedis , equivalent to 1.8 percent of GDP, and 6.6 percent of total expenditure, will be used for the clearance of arrears and outstanding commitments.

The minister maintained that the policies outlined in the budget, apart from inducing economic growth, will also help achieve broad macroeconomic objectives to restore and sustain macroeconomic stability; shift the focus of economic management from taxation to production; and manage the economy competently.

"We are confident that the above highlighted policies, which are discussed in detail in the Budget Statement, will contribute to the achievement of the following macroeconomic targets for 2017: Overall real GDP growth of 6.3 percent; non-oil real GDP growth of 4.6 percent; end-year inflation of 11.2 percent; and average inflation of 12.4 percent," Ofori-Atta indicated.

The minister also announced the decision of government to remove import duty on vehicle and machinery spare-parts, reduce SME Value Added Tax (VAT) to 3.0 percent from 17 percent, reduce energy sector levy on petroleum products from 17.5 percent to 15 percent, and remove excise duty on petroleum products and some other tax elements he described as nuisance to the private sector. Endit