AS PART of measures to ensure fiscal consolidation and effective use of resources, government has planned to fully roll out policy initiatives aimed at removing more agencies from its subvention to help ensure prudent use of resources for other critical sectors.
From next year, the Driver and Vehicle Licensing Authority, Environmental Protection Agency, Energy Commission, Securities and Exchange Commission, and the Game Commission would not have government subvention.
Director of budget at the Ministry of Finance, Patrick Numo, at a post-budget workshop in Accra for journalists yesterday explained that a comprehensive strategy is being drafted to ensure that other agencies are weaned off government subvention completely.
Mr. Numo further added that, for the first time, they are implementing a budget under International Monetary Fund (IMF) and in an election year, hence, there will be no “frivolous expenditure in 2016.”
The Director of Budget said the 2016 budget is the most transparent because every item to be spent on has been clearly spelt out adding that “the budget has been done with a lot of analysis, policy and technical hearings.”
According to him, as part of fiscal consolidation measures, government will only have five percent of Central Bank financing and gradually move to zero per cent to help stay on reform targets.
Policy Advisor at the finance ministry, Dr. John Kofi Baffoe, on his part, stated that the focus of the 20016 budget is to improve tax compliance, revenue mobilization and not to increase taxes.
Dr. Baffoe further explained that government would also monitor and direct the use of Internally Generated Funds.
The Policy Advisor said teaching hospitals, the Ghana Broadcasting Corporation, Food and Drugs Authority and other agencies would also be reviewed and weaned off government subvention or given guidelines on how to use it.
According to him, government is going to limit partial risk guarantees with multilateral organizations and use the little resources to woo in more private investors.
Presenting the 2016 budget statement and economic policy of government last Friday, the Finance Minister, Seth Terkper said government is also cutting waste to help ensure prudent use of resources.
According to him, government has created thousands of jobs for the youth of Ghana through the various projects that are being undertaken.
“The fixed and mobile telephony and internet subscriptions as at August 2015 stood at over 33 million and 17 million, respectively; … About 18,000 housing units are at different stages of completion; and … We are bringing on stream 845 MW of power to add to the generation capacity by the close of the year and providing the necessary investments and guarantees to permanently address our perennial power generation shortfall.”
“These investments have not only provided critical social services to improve the lives of our people, they have resulted in the creation of tens of thousands of jobs for the youth,” he said.
Mr. Terkper added that “notwithstanding these successes, we are mindful of the fact that some risks to the budget and medium term macroeconomic projections persist and new ones could emerge.”
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