Government expects a real GDP growth of 6.5 per cent and overall fiscal deficit equivalent to 7.5 per cent of GDP in 2010, the Minister of Finance and Economic Planning, Dr Kwabena Duffuor said on Wednesday.
Presenting the government's fiscal and economic policy to Parliament, he said the macroeconomic targets were consistent with the macroeconomic framework.
Government expects an average inflation rate of 10.5 per cent, end of period inflation of 9.2 per cent and gross international reserves of not less than 2.5 months of import cover.
Dr Duffuor said the Government would put in measures to reduce importation of rice into the country by 20% in 2010 and a further reduction of 35% by 2012.
He said import duties on textiles and poultry products will be rationalised to check dumping of such goods on the Ghanaian market.
The following are the highlights:
- There will be an electronic application or system for Ministries, Department and Agencies to enable them process and issue permits electronically.
- The Ghana Customs Management System will be strengthened to improve reconciliation of stocks in the warehouses. An Electronic Tracking System will also be introduced to monitor the movement of goods to and from bonded warehouses.
- The Government proposes a royalty payment of six per cent as an initial step in re-engaging all mining companies to review the fiscal regime within the mining industry.
- Studies are underway to assess the impact of re-imposition of taxes on petroleum products on household activities and economic growth.
- In 2010, the DVLA will introduce the re-registration of vehicles every two years as a means of validating all registered and genuine vehicles.
- The SSPP which has been on the drawing board since 2007 will be implemented effective January 2010 whilst steps would be taken to tidy up any pre and post implementation challenges.
- A five year implementation plan has been adopted by government. The first six months of the implementation process will be used to address some technical flaws to ensure that the SSPP does not re-introduce inequities, which it was designed to address.
- Government has taken note of the high expectation of public sector workers on how the implementation of the SSPP will affect their disposable incomes. Government has, therefore, taken steps to widen the consultation and dialogue with unionised labour and all other relevant stakeholders to ensure that the implementation of the new pay policy is well understood and
- a programme to remove schools under trees;
- the elimination of the school shift system;
- the Provision of free education for disabled children of school going age;
- revamping of science resource centres;
- provision of infrastructural facilities in Senior High Schools;
- Modalities for rewarding teachers who accept to work in deprived areas are being worked on for implementation in the medium term.
- The Government is providing GH¢25.0 million for the establishment and the implementation of Savannah Accelerated Development Authority for 2010.
- Kumasi Jute Factory to be rehabilitated
- Government will in consultation with the Ghana Institute of Management and Public Administration and other allied management training institutions, for a systematic training programme to help create a new dynamic corps of personnel to manage our public and private institutions.
- Government will rehabilitate, modernize and extend the rail network in the country, beginning with intra-urban network in Accra-Tema and Accra-Nsawam, Kumasi-Ejisu, and Takoradi-Kojokrom links.
- The Government expects a real GDP growth of 4.7 per cent in 2009
- The Agricultural sector grew by 6.2 percent, against a target of 5.7 percent
- The Industrial sector grew by 3.8 per cent down from an annual growth target of 5.9 percent.
- The Services Sector grew by 4.6 per cent against a target growth rate of 6.6 percent.
- Total revenue and grants amounted to GH¢4,518.6 million
- Total payments comprising statutory and discretionary payments amounted to GH¢6,266.4 million, equivalent to 29.6 per cent of GDP, against a budget target of GH¢7,189.9 million equivalent to 33.2 per cent of GDP.
- The overall budget deficit of GH¢1,376.7 million, equivalent to 6.4 per cent of GDP that was attained during the first three quarters of the year was financed from both domestic and foreign sources.
- Net domestic financing of the budget amounted to GH¢826.3 million, equivalent to 3.8 per cent of GDP, compared to a budget target of GH¢828.3 million.
- Financing from foreign sources totalled GH¢550.4 million, equivalent to 2.6 per cent of GDP.
- end period inflation target of 12.5 per cent;
- an overall budget deficit equivalent to 9.4 per cent of GDP;
- Gross public debt rose by about US$458.7 million to US$8,517.7 million at the end of September 2009.
- Total public debt amounted to 59.7 per cent of GDP as at end September.
- Ghana's balance of payments improved significantly over the first three quarters of 2009, recording an overall deficit of US$29.5 million, compared to a deficit of US$716.8 million in the first three quarters of 2008.
- Gross international reserves rose from a stock US$2,036.2 million at the end of 2008 to US$2,317.1 million at the end of September 2009. This translates into a cover for 2.4 months of imports of goods and services.
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