Ghana’s Finance Minister, Ken Ofori-Atta, will in accordance with Article 179 of the 1992 Constitution and Section 21 (3) of the Public Financial Management Act, 2016, (Act 921), and on behalf of the President of the Republic of Ghana, lay before Parliament the 2022 Budget Statement and Economic Policy of Government today, Wednesday, November 17, 2021.
The budget is expected to provide a roadmap for the government next year, especially as it will set out the policy direction, spending patterns as well as expected revenues and will also bring to the fore key priority areas of the government.
An official statement issued by the public relations unit of the Ministry of Finance, disclosed that the 2022 budget will focus on consolidating the recovery process of the Ghanaian economy whilst suggesting specific plans for creating jobs.
“The budget will primarily focus on expanding on the economy’s recovery from the COVID-19 pandemic, as well as creating a climate-friendly entrepreneurial state to address unemployment and import substitution.
“Digitalization of the economy, skills development and entrepreneurship will also feature prominently in the presentation”.
Ministry of Finance
Call for inputs into the budget
The Ministry of Finance announced in September that it had earnestly begun the process of developing the 2022-2025 Budget Statement and Economic Policy to be presented to Parliament by November, 15, 2021. This initial date was however, postponed to today, Wednesday, November 17, 2021.
The Ministry of Finance, in its earlier announcement, requested inputs from the general public for consideration into the 2022-2025 National Budget. This call, according to the Ministry of Finance, was a demonstration of Government’s responsiveness to the needs of the Ghanaian citizenry to deepen citizens’ participation in the budget process as well as implement inclusive policies.
The Ministry of Finance (MoF) expressed its appreciation to the Business Associations, Recognized Professional Bodies, Financial Institutions, Civil Society Organizations, Faith Based Organizations and the general public for “your invaluable contributions to the development of the National Budget over the years”.
Since then, several individuals, institutions, associations, and experts have brought forward their inputs and concerns to be embedded into the 2022 budget statement, even though some of these came after the October 8, 2021 deadline given by the Ministry of Finance.
Key concerns raised by the general public
Key among the inputs was a letter from the Ghana Revenue Authority (GRA) urging the Ministry of Finance to consider the reversal of the 50% Benchmark value policy on some 32 categories of imported commodities.
Even though this received the support of the Ghana Association of Industries (AGI), the Ghana Union of Traders’ Association (GUTA) warned that any attempt to reverse the policy will be “suicidal for the state” as it will result in price hikes. The AGI also argued that the policy runs counter to the government’s industrialization agenda as it is crippling domestic manufactures leading to job losses.
However, the hint from the MoF that the 2022 budget will focus on job creation and import substitution, leaves room for one to think that the government may consider the revision of the policy to support local manufacturers.
In terms of individual inputs, some experts urged the government to replace inefficient taxes with efficient ones to improve revenue mobilization. There were also calls for the government to continue its fiscal consolidation efforts to reduce the country’s ballooning debt stock. The need to continue vaccinating the citizens by procuring more vaccines next year also featured predominantly in the 2022 budget expectations. Finance Minister Finance Minister Finance Minister
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