Terkper presents Advanced 2017 Budget today

The Minister of Finance, Seth Terkper, will today  present to Parliament  an Advanced Budget; covering government spending for the first quarter of 2017.

The statement will show  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 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: citibusinessnews.com/Ghana