Highlights of 2014 Budget
The Minister of Finance, Mr Seth E. Terkper Tuesday morning presented the 2014 Budget Statement and Economic Policy to Parliament.
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Highlights of the budget
THEME: “Rising to the Challenge: Re-aligning the Budget to meet Key National Priorities”
1. President, Vice President and the Executive takes a 10% salary cut
2. Establishment of Infrastructure Fund
Will change fundamentally the funding and delivery of infrastructure in the country;
Will reduce cost, enhance timely payments, and promote more efficient delivery of capital projects.
Considering that lack of infrastructure remains a major hindrance to the transformation of the country in terms of the road, rail and energy to facilitate trade and expansion of businesses.
3. Support to local industries
Removal of taxes on HIV imported products
Removal of taxes on printing material – providing business, making Ghanaian printers more competitive
Provision of credit support for SME development
4. Setting up of contingency fund for the first time since constitutional rule
5. Agriculture modernization
Setting up of a two modern farmers market to transform the way agriculture produce especially how grain is marketed in Ghana through the use of modern facilities and ICT
6. Use of oil resources for targeted infrastructure development
7. Focus on ongoing and pipeline projects to enhance speedy achievement of related development outcomes
8. Innovative debt management strategy
Refinancing strategies
Use of long term funds to fund capital projects
Adopting escrowing and other innovative methods of debt financing
Undertaking rating of major funds
SOE borrowing on own balance sheet
9. Realignment of major expenditure items towards national priority programmes
Removal of subsidies (Petroleum and Utility Subsidies)
Strategies to sustain the payroll
10. PFM Reforms
Budget Reforms – efficiency value for money, better results
Introduction of Programme Based Budget
More transparent and accountable budget
Introduction of performance Management Information
Focus on results and not just activities
