PwC holds post-budget forum Monday
PwC Ghana will on Monday, November 18, hold a forum on the 2020 Budget and Economic Policy Statement of the government at the Kempinski Hotel in Accra.
The forum will bring together captains of industry, members of the business community, investors as well as policy makers to discuss and understand issues highlighted in the government’s 2020 budget.
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The Minister of Finance, Mr Ken Ofori-Atta, is expected to lead discussions at the event which will be moderated by the Country Senior Partner of PwC Ghana, Mr Vish Ashiagbor.
Other members of the panel are the President of the Association of Ghana Industries (AGI), Dr Yaw Adu- Gyamfi, a Partner at PwC Ghana, Ms Ayesha Bedwei and the Group CEO, Hollard Ghana Holdings, Mrs Patience Akyianu.
Mr Ofori- Atta presented the 2020 budget on November 13 on the theme: “Consolidating the Gains for Growth, Jobs and Prosperity for all.”
The budget focuses on building a more dynamic and stronger economy by accelerating economic growth, modernising agriculture, industrialising society and prosperity for Ghanaians.
Budget highlights
The government, through the budget, announced that it intended to spend GH¢85.9 billion in the 2020 fiscal year.
The projected expenditure would primarily be on wage bill, interest payments, goods and services for government operation and capital expenditure. Other areas are the one-off financing of the 2020 presidential and parliamentary elections, funding of government flagship programmes and security.
Total revenue and grants for 2020 were also projected to rise to GH¢67.1 billion, up from the projected out turn of GH¢54.6 billion for this year.
Domestic revenue was estimated at GH¢65.8 billion, representing an annual growth of 22.5 per cent over what was expected at the end of this year. Non-oil tax revenue would constitute about GH¢45 billion, reflecting the impact of expected improvement in tax compliance and reforms in revenue administration and the full-year revenue yield from the 2019 mid-year revenue measures. Non-tax revenue (excluding oil) was expected to reach GH¢8.5 billion.
On the energy sector, one key highlight was the fact that the government had placed a complete moratorium on signing of new contracts in the sector, restricting key institutions operating in the sector from entering into any new agreements until further notice.
Election year spending
Presenting the budget, Mr Ofori- Atta said in spite of the year being an election year, President Akufo-Addo and his government would ensure that the perennial excessive spending during such periods would not happen in 2020.
“We shall work within the 2020 appropriated resource envelop and adhere to the Fiscal Responsibility Act to maintain fiscal discipline. We will do so, not because we are complacent of our chances. No. We will do so because the nation needs it and we are not prepared to throw away all the sacrifices and gains the people and their government have made in the last three years,” he said.
He added that the government would continue to consolidate the macroeconomic gains and offer individuals and businesses, the predictability and stability that they needed to manage their lives.