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Thursday, January 27, 2022

Here are the areas government is seeking to amend in 2022 budget statement

Finance Minister, Ken Ofori-Atta

Finance Minister, Ken Ofori-Atta has announced a number of modifications to the 2022 budget statement and economic policy.

This comes after government officially wrote to Parliament on the said modifications from the budget statement.

Addressing journalists at a press conference on Monday, December 6, 2021, Ken Ofori-Atta disclosed modifications have been made to four key issues out of the five raised by stakeholders including the Minority in Parliament.

These include the Agyapa Royalties deal, Tidal Waves which rendered about 3,000 people homeless at Keta, Anlo and Ketu South constituencies, the GNPC-Aker Energy transaction, as well as the Benchmark Values.

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Meanwhile, the modifications exclude the proposed electronic transactions levy which has been of major concern to lawmakers and a section of the Ghanaian public.

GhanaWeb Business in this article provides you the areas that the Finance Minister is seeking to amend in the 2022 budget statement as presented at the December 6, 2021 media encounter.

Here they are:

Agyapa Royalties deal

i. with regards to Agyapa Royalties Limited, we shall amend paragraphs 442 and 443 to take out references to mineral royalties collateralisation. It is important to note that, any reference to Agyapa was for informational purposes, and as such was not reflected in the fiscal framework;

Tidal Waves, Sea Defence Projects

ii. in respect of the unfortunate tidal waves which rendered about 3,000 people homeless in Keta, we shall make the necessary budgetary allocations of at least GHS10 million to complete the Feasibility and Engineering studies for the coastal communities adversely affected.

We will broaden the scope of the study to consider a more comprehensive solution to protect Ghana’s 540 Km of coastline, including the 149 Km between Aflao and Prampram. Meanwhile, NADMO has responded to the humanitarian crisis created by the tidal waves on the Keta coastline;

GNPC, Aker Energy deal

iii. relating to the Aker Energy transaction, we shall amend paragraph 829 of the 2022 Budget on the acquisition of a stake from Aker Energy and AGM Petroleum by GNPC, to reflect the resolution of Parliament dated 6th July, 2021 that “the terms and conditions of the loan for the acquisition of the shares shall be brought to Parliament for consideration pursuant to article 181 of the Constitution;

Benchmark Values

iv. on the benchmark values, we shall avert any hardships to importers and consumers while safeguarding the interest of local manufacturing industries to secure and expand jobs for our people. This administrative exercise which reviewed 43 out of 81 line items, has the objective to promote local manufacturing and the 1D1F policy, including the assembling of vehicles.

It is important to note that this adjustment affects only 11.4% of the total CIF value, of which 50% is for vehicles. From our analysis, the potential increase in retail prices should be relatively insignificant and therefore inflation should be muted.

The YouStart policy will also support our accomplished Traders with appropriate training and access to capital to become manufacturers in order to expand the industrial base of our society and our import substitution strategy, in line with our Ghana Beyond Aid agenda.


v. E-Levy: On the matter of the E-levy, having regard to its serious fiscal implications, we will continue our consultations with the Minority Caucus in Parliament and other relevant stakeholders, with a view to achieving consensus and reverting to the House in the shortest possible time.

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