new tax initiatives

Government remains strongly committed to growing the economy

Mr Ken Ofori-Atta, the Finance Minister, on Monday said despite the measures being taken to maintain fiscal discipline, government will strongly forge ahead to growing the economy and deliver services to strategic allocations through efficient use of resources.

He said its flagship programmes such as the Free Senior High School Policy, National Health Insurance Scheme (NHIS), School Feeding, the Livelihood Empowerment against Poverty (LEAP), and the Planting for Food and Jobs, would be protected.

Mr Ofori-Atta said this when he presented the Mid-Year Fiscal Policy Review of the 2017 Budget Statement and Economic Policy to Parliament on Monday.

He said Ghana’s total Revenue and Grants had been revised downwards by 0.9 per cent of the Gross Domestic Product (GDP) from GH¢44.5 billion to GH¢43.1 billion.

He said the revision emanated from revisions made to Corporate Income Tax, Import Value Added Tax, Import Duty, as well as the reclassification of expected non-tax revenue inflows from the sale of government shares of GH¢500 million as financing.

The total Expenditure, he said, had also been revised downwards by 1.1 per cent of GDP from GH¢58.1 billion to GH¢55.9 billion.

Mr Ofori-Atta said the key revisions to expenditures include: 0.4 per cent of GDP (GH¢867.0 million) adjustment to Goods and Services; 0.3 per cent of GDP (GH¢553.2 million) reduction in total transfers to Other Government Units, which comprise all statutory and earmarked funds; and 0.3 per cent of GDP (GH¢683.0 million) adjustment to Capital Expenditure.

He said notwithstanding the expenditure cuts, key Infrastructure for Poverty Eradication programmes such as the One District, One Factory; One Village, One Dam; Small Business Development; Agricultural Infrastructure; Water for All and Sanitation Projects would take off before the end of the year.

Source: GNA