Business News of Wednesday, 15 November 2017
Source: citifmonline.com
2017-11-15
Finance Minister, Ken Ofori-Atta
Government expects to spend an estimated 62 billion cedis in the 2018 financial year, Finance Minister Ken Ofori-Atta has revealed.
This is equivalent to 25.7 percent of the country’s Gross Domestic Product (GDP), and represents an annual growth of 14.5 percent.
The Finance Minister made the announcement today, Wednesday, November 15, 2017, in parliament during the national budget presentation.
According to him, “Total revenue and grants for the 2017 fiscal year has been conservatively estimated at 51 billion cedis based on our projection of the level of economic activity in 2018, government policy on taxation, and donor grant disbursement.”
Mr. Ofori-Atta also disclosed that, total money received from upstream petroleum activities in the same period under review, amounted to 3.2 billion, and estimated at 6.2 percent of Total Revenue and Grants.
“This is about 1.3 percent of GDP, and represents a per annum growth of 24.8 percent over the 2017 projected out-turn.”
From this, the Finance Minister explained that, government expects 50.5 billion cedis from domestic revenue, representing an annual growth of 26.9 percent.
He added that non-tax revenue is pegged at 8 billion cedis, equivalent to 3.3 percent of the GDP.
Of this amount, Internally Generating Fund (IGF) Institutions are expected to retain to get about 3.8 billion cedis .
“Revenue inflows from the Energy Sector Levies, specifically, the Energy Debt Recovery Levy, and the Price and Stabilization Levy, is estimated at 2.1 billion cedis. These inflows are reported for transparency purposes and are not intended for budget use,” he clarified.
On Grants from development partners, Mr. Ofori-Atta stated that, funds expected for projects in that area are estimated at 586.8 million cedis.
He however added that, government is not expecting any programme grants from development partners.
“It is important to note that, as a middle-income country, these donor resources will cease with time, emphasising the urgent need to boost domestic revenue mobilisation,” he stressed.
