“The Budget Statement was prepared additionally within the
context of:
i. Ongoing IMF programme negotiations.
ii. Debt treatment as part of measures to restore debt
sustainability.”
He also updated this country on
the IMF programme and debt
operations.
Mr Speaker, it is significant to
observe the level of transparency and
accountability that was injected into
the crafting of the 2023 Budget
Statement. That is what the House
Government's Financial Policy, 2023
has been yearning for and that is what
is behind the introduction of the
Budget Bill to involve Parliament,
the people's representatives, in the fashioning of a National Budget
Statement in order to achieve the
desired national growth and growth
of the living conditions of the masses
in a very sustainable manner.
Mr Speaker, this explains why this
year, for the first time in the history
of the Fourth Republic, an Hon
Minister for Finance engaged the
Leadership of Parliament and,
indeed, some selected Committees of
Parliament to brief them on the state
of the economy, the engagement with
the IMF, and the broad strokes of the
Budget Statement that was being
fashioned out at the time.
The Hon Members who were
present spoke candidly about their
own expectations and that of the
Ghanaian public. One hoped that that
encounter began by the Hon Minister
would mark a new beginning in the
Executive-Parliament discourse in
the lead-up to the preparations and
presentations of National Budget
Statements.
Mr Speaker, in a very candid
manner, the Hon Minister took the
House through the broad contours of
the IMF programme, including the
medium-term macro framework and
the continuance of the negotiations
towards the achievements of the
staff-level agreement by the end of
2022.
Mr Speaker, the Hon Minister, at
this level, informed Ghanaians about
the IMF programme and the debt
operations that my Hon Colleague
related to as part of the measures to
ensure debt sustainability. The debt
operations are on two fronts:
domestic debt operations and
external debt operations. The
combined effect of these operations
would lead to the definition of
priorities for the 2023 Budget
Statement.
Mr Speaker, the Hon Minister
spoke about these priorities, and he
mentioned them as the following:
i. Restore macroeconomic stability with the view to
restore fiscal and debt
sustainability.
ii. Pursue key structural reforms to improve public
finance management and
enhance productivity and
Government's Financial Policy, 2023
innovation to support durable
and inclusive growth.
iii. The priority is to address energy sector issues.
iv. Optimisation of domestic revenue mobilisation.
v. Protect social intervention programmes to protect the
poor and the vulnerable.
vi. Pursue key interventions in the real sector,
agriculture, industries, and
services to enhance domestic
productive capacity and
improve competitiveness
towards the production of
value-added exports and
import substitution products.
Mr Speaker, the Hon Minister did
run us through the key macro-
economic consideration for 2023. I
would like to quote what he said:
“The 2022 GDP has been revised by 23.6 per cent, and
the 2023 target now is 2.7 per
cent reflecting the impact of
fiscal adjustments and debt
treat-ment. Inflation is
expected to moderate from the
current levels to 20.9 per cent
next year”.
Mr Speaker, we would all admit
that where we are, the levels of
inflation are really unbearable. The
exchange rate depreciation is
expected to dip with the inflows from
the IMF, and other development
partners and the impact of the fiscal
adjustment and debt treatment. The
fiscal deficit and primary deficit
would be reduced in 2023, due to the
impact of fiscal adjustments and debt
operations.
Mr Speaker, the Hon Minister
informed the House that the gross
international reserves, which stood at
GH₵10 billion as of September 2021, and not less than 4.9 months of
import cover and which scaled down
to about GH₵6.9 billion as of September 2022, are expected to
improve on the account of the IMF
and other development partners
inflows.
Mr Speaker, he then went on to
speak about revenue measures. With
revenue measures, the key ones to
provide self-sufficiency include:
i. Revision of income-based taxes,
Government's Financial Policy, 2023
ii. Removal of selected VAT exemptions,
iii. Revision of excise taxes for selected items,
iv. Complete removal of discount on benchmark
values,
v. Undertake e-Levy reforms to close loopholes, and
leakages, improve patronage,
and enhance yields,
vi. Implement the unified property rates collection,
vii. Convert the National Fiscal Stabilisation Levy to
Growth and Sustainability
Levy to rope in all entities,
viii. Scale up the implementation of the VAT e-invoices
System, that is the
utilisation system, to
enhance compliance,
ix. The e-Levy reformation to yield additional revenue,
and
x. Increase the VAT rate from 12.5 to 14.5 per cent.
Mr Speaker, growing up, the
Local Councils at the time had a way
to collect property rates, and the
houses paid. The 2020 Population
and Housing Census revealed that
there were 8.5 million houses in
Ghana. If on the average each house
pays GH₵500 per year, the equivalent of about US$35, the
revenue yields would be up to
GH₵4.25 billion. If the average is GH₵750, the equivalent of US$50, it would yield an amount of GH₵6.375 billion; and if the average is
GH₵1,000, it would yield about GH₵8.5 billion.
Mr Speaker, property, as you
know, is assessed by its location, that
its closeness to the city centre; the
class of the community where it is — hence, the cost of the land; the
services provided, including roads,
water, electricity, telephone and now
internet services; the design of the
property; the integrity of the
structure, et cetera. We were told just
four days ago that Accra is rated the
9th richest city in Africa. There are
houses in Accra that would go for
nothing less than about US$4 million
or the equivalent of about GH₵50 million. Such property could attract a
rate of not less than GH₵20,000 per year that is about the equivalent of
Government's Financial Policy, 2023
US$1,300; the District Assemblies
would have resources to develop their
districts if we go on the trajectory.
Mr Speaker, my Hon Colleague,
the Hon Minority Leader, related to
the abolishing of the road tolls and I
agree that it should be brought back.
It was taken off last year and one of
the reasons was the abuse and
corruption at the toll booths.
Nationwide, the tolls were yielding
about GH₵72 million per year and estimates were that they could have
raked in a minimum of GH₵200 million if they were properly
managed, but the country was
earning just about a third of the
potential yield.
The way to go is electronic booths.
If on the average, vehicles should pay
about GH₵5, which is about US$0.35 now, and we introduce electronic
devices, we should be able to rake in
a minimum of GH₵1 billion from the road tolls alone. Mr Speaker, we
should go back to that as one of the
prime revenue measures.
At the same time, the Hon
Minister also related to a 12-point
expenditure measure that have been
introduced: first, to reduce the
threshold of the earmarked funds
from 25 per cent of tax revenue to
17.5 per cent of tax revenue; second,
to raise the Livelihood Empower-
ment Against Poverty (LEAP) pay-
ments per beneficiary household
from the current GH₵45 per month, and increase the number of bene-
ficiaries from 344,185 households
which is to protect the very
vulnerable.
Mr Speaker, the third matter that
he raised, is to increase the school
feeding caterer payment rate from the
current GH₵1 per child to GH₵1.20. How I wish that, perhaps, we could
increase it to, at least, GH₵1.40 or
GH₵1.50.
Mr Speaker, the Budget Statement
also promises to eliminate the
subsidy on residual fuel oil, and
increase the price of pre-mix fuel to
reflect market prices. They intend to
continue the 30 per cent cut in the
salaries of the Executive. I know
these are challenging times for us, Mr
Speaker, and, I know that, para-
doxically, the demand on MPs to
effect payments to the vulnerable in
their constituencies has gone up
significantly, perhaps by about 100
per cent.
Government's Financial Policy, 2023
But Mr Speaker, as MPs, just as
the Executive has done, maybe we
could also, even though, there are
difficult periods for all of us, we
could also utilise the opportunity and
also show some example by
sacrificing anything between 10 and
15 per cent of our salaries to
demonstrate to fellow Ghanaians that
we are with them in these difficult
moments. We could utilise the yields
to build, say, a toilet facility in a
designated location every month and
that would be the contribution or the
sacrifices that MPs would be making.
Mr Speaker, the Government is
minded to review the flagship
programmes, in order to achieve
greater value for money and proposes
to place a cap on salary adjustments
by State-owned enterprises and tie it
to the Single Spine Salary Structure
(SSSS). Some Chief Executives and
Managing Directors of some State
enterprises earn very outrageous
emoluments, and I think that we need
to be very practical about these matters.
Mr Speaker, the Hon Minority
Leader related to negotiation of
public sector wages and I think it is
significant. He says that we should be
tying it to the rate of inflation and I
think that is a monumental
consideration. But one would want to
ask him whether at his own time he
succeeded in doing this, even once?
Never! Talk, really, is cheap, but I
think that the issue that the Hon
Minority Leader raised is a
monumental thing that we should be
considering.
In negotiation of salaries for the
workers down and below, I agree
that, maybe, inflation should be a
factor or interest rates or even
depreciation of the Ghanaian cedi.
They are all factors that we should
consider if we really want to maintain
a certain base minimum standard of
living for them.
Therefore, whereas I agree with
the principle that the Hon Minority
Leader is espousing, charity ought to
have begun at home. When he was in
charge, he was not able to do that; not
even on one occasion. And yet today,
he is preaching the gospel which is
good though, but we should all unite
behind it and imbibe it.
Mr Speaker, the Government has
set out to better manage public sector
hiring within the budgetary
constraints and, finally, also to
introduce other expenditure measures
including cutting back on foreign
Government's Financial Policy, 2023
travels, vehicle purchases and the use
of off-site workshops, overseas
training and so on and so forth.
These measures are really intended
to reinvigorate the economy. We must
admit that the economy has come
under severe strain and the cost of
living has ballooned and negatively
affected the development of the
Ghanaian people. The major causes
are financial, but the economy
performed abysmally and hopelessly
as my Hon Colleagues have insisted
on, but Mr Speaker, the facts do not
bare this out at all.
Mr Speaker, if we have to compare,
in this annus horribilis for the New
Patriotic Party (NPP) Government,
with what happened under the
National Democratic Congress
(NDC) Government, this year we
have the satanic developments of
COVID-19 and the Russian invasion
of Ukraine, yet growth in various
sectors vindicate the NPP Admini-
stration as better economic managers.
Provisional data from the Ghana
Statistical Service (GSS) indicates
that the overall Gross Domestic
Product (GDP) for the first half of
2022 was 4.0 per cent as compared to
an average of 3.9 per cent in 2016
when there was no COVID-19 and
when there was no Russia-Ukraine
War.
In the agricultural sector, the
growth for 2014 up to 2022 bears
eloquent testimony and I think it is
instructive to go through: in 2014
when the NDC was in power,
agriculture grew by 0.9 per cent; in
2015, it was 2.1 per cent; in 2016, it
was 2.7 per cent; in 2017, it grew to
6.2 per cent. The Hon Member for
Asunafo South, Mr Eric Opoku,
knows that I am speaking to the truth.
In 2018, it was 4.9 per cent; in 2019,
4.7 per cent; in 2020, it was 7.3 per
cent; in 2021, it was 8.4 per cent and
now, the first half of 2022 is 4.9 per
cent, which is still better than in 2014
when the NDC was in power and
agriculture grew at 0.9 per cent.
Mr Speaker, in 2014, the cocoa
sector grew at 4.3 per cent and there
was no COVID-19. In 2015, under
the NDC, the cocoa sector grew at
negative eight (-8) per cent; in 2016,
negative seven (-7) per cent. The
NDC was in charge, there was no
COVID-19 nor the Russia-Ukraine
War. Mr Speaker, now let me fast-
track it — In 2021, the cocoa sector grew at 10.4 per cent and even now,
when times are so hard, the first half
Government's Financial Policy, 2023
of the year, it grew at 1.6 per cent,
which is still significantly better than
their negative eight (-8) per cent in
2015, and negative seven (-7) per
cent in 2016.
So, when they talk courageously
that they are better performers and
better managers of the economy, one
wonders where they are coming
from. It is as if they have descended
all of a sudden from Mars, yet they
are here on earth. Their track record
is humongously appalling.
Mr Speaker, regarding forestry
and logging, the NDC in 2014
recorded negative 1.5 per cent; in
2015, they recorded negative 3.9 per
cent. In 2021, it was 4.7 per cent; in
2022, which has been a horrible year
for us, it is 0.4 per cent, which is still
better than their negative growth
rates.
Regarding fishing, in 2014, they
grew fishing at negative 23.3 per
cent; in 2015, they did slightly better
and climbed up to 8.5 per cent and; in
2016, 3.1 per cent. Now in 2020, it
was 14.1 per cent; in 2021, it was
13.4 per cent and; in 2022, the annus
horribilis, it is 15.9 per cent. [Hear!
Hear!] — So where are they coming from?
Mr Speaker, Industry, under the
watch of the NDC, it grew at 1.1 per
cent in 2014; 2015 -- 1.2 per cent; 2016 -- 4.3 per cent. Today, our most horrible year, first half is 1.8 per cent
-- still much better than their 2014 and 2015 when there was no COVID-
19 nor Russian-Ukraine war.
Mr Speaker, Mining and quarrying - the year 2015, -8.3 per cent; the year
2016 -- -0.2 per cent. Today, our most horrible year, 0.6 per cent -- positive. So, where are these our Hon
Colleagues coming from? They are
here on earth with us. One could go
on and on; their track record is so
horrible that sometimes, I wonder
whether they have now been born
into a country called Ghana or they
have been here all this while. Their
track record is most appalling and
most horrible.
Mr Speaker, Education services -- in the year 2014, they grew education
at -0.3 per cent; that is their track
record. In the year 2015, it was -0.5
per cent; in the year 2016, they
managed their head up the water a bit
and it was 2.3 per cent but in the year
2022 -- in the first half of our most horrible year, education has grown by
Government's Financial Policy, 2023
9.0 per cent -- that is the track record of the NPP. Health and social work - 2.7 per cent in the year 2014; -4.4 per
cent in the year 2015; and 4 per cent
in the year 2016. Today, it is 9.3 per
cent; that is health and social work.
And finally, Other Services.
Their track record when they were
leaving in the year 2016 -- the growth in other service activities was
minus -0.1 per cent. Today, our annus
horribilis, worst year, it is positive
2.0 per cent. In virtually every facet
of the economy, the figures churned
out under the NPP are far better than
under the NDC -- so, where from this contrivance and the shrieking
voices?
Mr Speaker, article 36(3) of the
1992 Constitution provides and I quote:
“The State shall take appro- priate measures to promote the
development of agriculture and
industry”.
The service sector exists to
lubricate agriculture and industry.
Unfortunately for us, the service
sector is outstripping and indeed,
outpacing agriculture and industry
and that cannot be good because in
Ghana, we do not have a specialised
service delivery system. So, if we
have the service industry growing as
of this year -- in the year 2022, the contribution of agriculture to GDP is
21.6 per cent; industry is 30.4 per
cent; and services is 48.0 per cent. In
such situations, growth may happen
without the commensurate develop-
ment and that should worry us. As I
said, Ghana's economy is not a specialised service activity propelled
one — under the circumstances, we need special emphasis to be placed on
agriculture and industrial develop-
ment to add value to our agriculture
and forest products.
Mr Speaker, clearly, the Ghanaian
situation today is not one of epileptic,
and I am quoting the Hon Minority
Leader who borrowed my own words
without paying the relevant pittance
to me. Ghana's economy is not one of epileptic growth since even under the
hugely negative impact of COVID-
19 and the Russian-Ukrainian
imbroglio, the NPP administration
has done better than the rather
shambolic regime offered by the
NDC.
Mr Speaker, in conclusion, let me
remind my Hon Colleagues that until
the COVID-19 pandemic, Ghana's economic development was about
Government's Financial Policy, 2023
plateauing and it is the reason we saw
consistent GDP growth rates. That is
why the theme for this year's Budget Statement is — “Restoring and Sustaining Macro-Economic
Stability and Resilience through
Inclusive Growth and Value
Addition”.
This is the essence of the Nkabom
Budget -- complementing one another at this crucial time to ensure
the unity and stability of our dear
nation, Ghana.
This Nkabom Budget is not of the
same order as the Nkabom Aban or
Union Government which was
roundly rejected by Ghanaians. So
Mr Speaker, let us all rise to rebuild
the nation together as the prophet
Nehemiah urged his people in those
days of extreme want.
Mr Speaker, I entreat all of us to
join ranks with the administration to
join hands and come together to
rebuild, knowing that we are one
people in one country with a common
destiny. Let me wish for all of us
God's blessings. God bless our homeland Ghana and make her great
and strong.
Mr Speaker, I thank you very
much for the opportunity provided
me.
