Business News of Tuesday, 27 January 2015
The Pentecost University College Graduate School (PUCGS), has organised a seminar on the 2015 National Budget, as part of the process to contribute its quota to national development.
The annual event was on the theme: “Analysis of the Tax Components of the 2015 National Budget.”
In his welcome address, Professor Kwame Boasiako Omane-Antwi, Vice Rector of the University said the academic facility has a standing committee to review tax, economic and good governance issues in Ghana, particularly when a budget statement is presented.
Prof Omane-Antwi, who is also the Dean of PUCGS, said the budget statement projected overall real GDP; including oil growth rate of 3.9 per cent, overall non-oil real GDP growth rate of 2.9 per cent, end of year inflation target of 11.5 per cent, overall budget deficit equivalent to 6.5 per cent of GDP and gross international reserve of not less than three months of import cover for goods and services.
He said these targets are being threatened by the fallen crude oil prices on the global market, adding that the Minister of Finance admitted in news report that with the continuous decline in crude oil prices since September 2014, the estimated petroleum benchmark revenue price of $99.376 per barrel for 2015 may not be achieved and this could have negative implications for the budget execution.
The Vice Rector said there is the need for the country to rethink and develop a national model that puts the economy first, before politics and culture, as practiced in South Korea.
Prof Omane-Antwi said the model would help the nation to interrogate economics issues better, devoid of emotions and political insinuations.
Mr Isaac Nyame, an Accounting, Finance and Tax Consultant who spoke on: ‘The Legislative Process and Tax law,” said government raises funds from direct taxes, indirect taxes, tax revenue as well as loans and grants from donor partners, and all these had been clearly laid out in the budget.
“This has been the structure of our budget for so many years, and the budget sometimes encounter challenges such as ‘donor fatigue’”, he said.