Finance Minister presents 2017 1st quarter budget Thursday

The Minister of Finance, Seth Terkper, is expected to present to Parliament next week Thursday, an Advanced Budget; covering government spending for the first quarter of 2017.

The statement will detail the projected revenue and expenditure between January and March next year.

This practice is in accordance with what the Executive does almost every election year to avoid spending hiccups in case of a transition in government.

This is also in accordance with a 2017 budget preparation calendar by the Ministry of Finance.

The Deputy Majority leader, Alfred Agbesi disclosed this when he addressed the House on Friday.

“The Minister of Finance is expected to present to the House on Thursday October 20, 2016, the expenditure in advance of appropriation from January to March 2017 as well as the revenue and expenditure for the government of Ghana for the same financial year,” the Deputy Majority Leader remarked.

The decision to present an advance appropriation follows from the fact that there is not going to be a conventional budget presentation in November as is associated with election years.

Government in July this year presented a revised budget statement to Parliament when it sought approval for an additional 1.8 billion cedis for the remaining of 2016.

At the time, the major developments on the international market scenes that caused a reduction in accrued revenue prompted government to review its anticipated revenue targets to meet the prevailing prices.

Some of the revisions to the revenue components were that of crude oil prices.

The price of a barrel of crude was revised downwards to US$45.35 from US$53.05 per barrel.

Also, total petroleum receipts for 2016 is now estimated at GH¢1.4 billion (0.8 percent of GDP), compared with the 2016 Budget estimate of GH¢2.0 billion (1.3 percent of GDP).

Likewise, total expenditure and arrears clearance were revised downwards, from GH¢46,445.7 million (29.3 percent of GDP), to GH¢46,297.0 million (27.8 percent of GDP) mainly on account of lower spending from oil revenues.

Earlier in November 2015, the 2016 Budget statement indicated that government would require about 50 billion cedis to meet its expenditure needs for 2016.

By: Pius Amihere Eduku/citibusinessnews.com/Ghana

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