Ghana 2019 Budget Commentary And Tax Highlights
Ghana 2019 budgetcommentary and tax highlightsNovember 2018
Ghana’s Minister of Finance, Hon. Ken Ofori-Atta, presented the 2019 budgetstatement and economic policy to Parliament on Thursday 15 November, 2018.The 2019 budget statement and economic policy is under the theme “A StrongerEconomy for Jobs and Prosperity”. Accordingly, the budget is centered on acceleratinggovernment’s programme of growing the economy, protecting the vulnerable, andcreating jobs and prosperity for the Ghanaian people over the next financial year.The budget statement also includes a number of tax policy proposals focusedon enhancing domestic revenue mobilization. Where legislative enactments arerequired, the proposals are expected to be submitted to Parliament for approvaland subsequent amendment/enactment of legislations to make them effective.In this publication, we provide commentary on the key policy initiatives for 2019 andhighlights of the main tax proposals in the budget statement and economic policy.
Contents040614The 2019 budget focuses on postIMF government interventions with highlights onkey macro economic variables.Key highlights of government’s efforts andproposals across the various sectors of theeconomy.With growth in government revenue andpropelled productivity for local industries beingkey considerations for the 2019 budget, government has proposed a number of tax policies.Budget at a GlanceEconomy and Sectoral Outlook for 2019Tax Policy Proposals
Budget at a GlanceRevenueTrendsEconomicGrowthGDP growth Revenue outlook for 2019IMF’s forecast for global GDP growth in 2019 isexpected to remain at 3.7%.Overall GDP for Ghana is projected to grow by 7.6% in2019, up from 5.6% in 2018.Non oil GDP growth is estimated at 6.2% in 2019.Projected domestic revenue for 2019 (GHS billions)OtherRevenueGrantsSept. 2018Source: 2019 Budget Statement and Economic policy0.19.8%2030408.0%Inflation expected to remain in single digit and declinefurther to 8.0% in 2019.50Full year domestic revenue collection is projected GHS57.79 billion, representing an annual growth of 25.5% overthe projected outturn for 2018 driven mainly by taxrevenue.Budget deficit Exchange rateThe current account deficit of GHS 9 billion is expectedto remain low on the back of continued fiscalconsolidation and improved revenue prospects fromincreased oil and gas production.The current deficit is projected to end 2018 at 3.2% ofGDP and further decline to 3.1% of GDP in 2019 beforedecreasing further to 2.9% of GDP by 2020 Exchange rate development - end of OctoberDescription20182017Cedi/dollar depreciation7.6%4.4%Cedi/pound depreciation4.0%11.9%Cedi/euro .2% 3.1% 2.9%BudgetMedium-Term46,81315.7%58,90517.1%67,818 74,74617.1% 16.6%79,40515.2%Total expenditure% of rebased GDP57,82819.4%73,44121.3%82,365 89,26320.8% 19.8%95,36818.3%Non-interest expenditure% of rebased GDP42,91014.4%66,34716.8%67,818 71,26417.1% 15.8%76,55014.7%Budget Balance% of rebased GDP(11,015)(3.7%)(14,536)(4.2%)(14,547) (14,522) (15,963)(3.7%) (3.2%)(3.1%)The largest components of the projected expenditureare compensation of employees, interest paymentsand grants to other government agencies(subventions)Interest payments are projected to inch up to GHS 18.6billion or 25% of total revenue projected for 2019.Interest payments exceeds capital expenditure andgoods and services.Government has outlined four initiatives which couldpotentially drive expenditure towards a wider budgetdeficit. These are summarized belowTop 4 initiatives with likelysignificant impact on expenditureGHS MillionFree SHS1,683Infrastructure for Poverty Eradication Programme1,320Planting for Foods and JobsTotalSource: 2019 Budget Statement and Economic 50%40%68,86059,91360%30%20%10%20162017Sep-18-Gross Public debt/GDPSource: 2019 Budget Statement and Economic policyDebt to GDP (2013-2018)ProjectedOutturnTotal revenue and grants& of rebased GDPNational Builders Corp57%56%43%80,000-57%2022Source: 2019 Budget Statement and Economic policyExchange rate development - end of octoberSource: 2019 Budget Statement and Economic policyGHS’ Million56%51%100,00020,000Summary of Central GovernmentFiscal Operations (2018 - 2022)Source: 2019 Budget Statement and Economic policy2019 Target120,00040,0003.070%160,0009.610End ofperiodinflation180,000140,000Overall GDP (excl. oil)Inflation targetsTrends in public debt and debtaccumulation45.3Non-TaxRevenueSource: 2019 Budget Statement and Economic policySummary of government’s expenditure 2018 and 2019 budgetTrends in public debt and debt accumulationTotalTax RevenueGDP growth forecast (2019 - 2022)Overall GDP (incl. oil)Expenditure projectionsGHS million PublicDebtExpenditureTrends8503804,233New GDP 6.8%39.3%30.9%70.2%43.8% 41.2% 36.8% 35.9%29.4% 31.9% 32.4% 34.8%73.2% 73.1% 69.3% 70.7%20.9%22.0%42.9%28.7%22.5%51.2%33.2% 32.0% 29.6% 29.0%22.4% 24.8% 26.0% 28.2%55.6% 56.9% 55.6% 57.2%Old GDP SeriesGross external debt/GDPGross Domestic debt/GDPGross Public/GDPNew GDP SeriesGross external debt/GDPGross Domestic debt/GDPGross Public/GDPSource: 2019 Budget Statement and Economic policyPublic Debt201819.8%Overall public debt grew by19.8% in 2018 mainly as a resultof the government’s bailout of theseven local banks (at about GHS9.9billion).
Ghana 2019 Budget Commentary Highlights of key tax policy proposalsHighlightsof key taxpolicyproposals1Review of personal income taxband to reduce top marginal taxfrom 35% on monthly taxableincome above GHS10,000 to 30%on monthly taxable incomeexceeding GHS20,000.4Supply of locally made textiles to besubject to VAT at a rate of zeropercent for a period of three years.7Enhance valuation of real properties and collection of propertytaxes.2Extension of tax stamp policy toinclude the textile industry to curbsmuggling and counterfeitingwithin the industry.5Creation of special dispensationfor companies who commit additional funds to support government initiatives – corporate taxdeductions can be made for suchcontributions to reduce taxableincome of the companies.3Shift point of withholding tax onincome from small scale mining topoint of export of minerals.6Strict enforcement of the use TaxIdentification Numbers (TIN) andapplication of sanctions againstinstitutions and individuals thatflout implementation.8Intensify tax compliance measuressuch as audits and prosecution oftax defaulters.05
Ghana 2019 Budget Commentary Economy and Sectoral Outlook for 2019Economy and Sectoral Outlook for 201906Banking, capitalmarkets andinsuranceEducationEnergyHealth
Ghana 2019 Budget Commentary Economy and Sectoral Outlook for 2019BankingThe Government announced additional policies toimprove and sanitise the banking sector. Banking, capitalmarkets andinsuranceThe completion of the implementation of theBasel II/III supervisory framework.The revision of the risk-based supervisoryframework for bank examination on riskissues.Constituting the Ghana Deposit ProtectionScheme in 2019.Capital markets The Government of Ghana intends todevelop a 10-year Capital Market MasterPlan.SEC has finalised works on the Real EstateInvestment Trust (REIT) guidelines to beimplemented in 2019.The implementation of the supervisoryframework for Basel II/III (Capital Requirement Directive), will strengthen banks’ riskmanagement practices by ensuring thatbanks only assume risks that are proportionate to their capital.The Ghana Deposit Protection Schemewould ensure that depositors’ funds are safeby providing an additional layer of protectionin addition to the Central Bank's oversight.The profile of Ghana’s capital market hasimproved significantly over the last fewyears. In the debt capital markets, secondarymarket activity have picked up, with strongparticipation of off-shore fixed incomefunds. Government issuances and a strongemerging appetite for corporate bonds willcontinue to drive market activity. The fastgrowing pensions sector provides a strongcaptive demand for fixed income securities,and also provides liquidity for secondarymarket activity.In the equities market, the listing of MTN hasimproved overall market outlook. However,challenges over liquidity of the stock marketremains unchanged. The proposed CapitalMarket Master Plan must endeavor toprovide incentives for companies especiallymultinationals and players in specific industries such as banking and insurance to liston the market.07
Ghana 2019 Budget Commentary Economy and Sectoral Outlook for 2019Pension The National Pensions Regulatory Authority(NPRA) projected total pension assets willincrease to GHS25 billion by end of 2018 andGHS 34 billion in 2019.To reach these targets, NPRA intends to buildinternal capacity in the industry throughtraining, automation of their operations andthe adoption of a risk-based supervisionframework.Insurance The National Insurance Commission (NIC) willimplement the Electronic Motor InsuranceDatabase (EMID).NIC will also introduce new minimum capitalrequirements for the industry.Total pension assets are projected toexceed GHS 25 billion by the end of 2018.Pension funds are increasingly becoming amajor source of funded liquidity to thebanking sector and the fast growing fixedincome market. As the total assets grow,there is the need for improved regulatoryoversight in order to guard against potentialrisk taking by fund managers.The new minimum capital requirements willstrengthen the insurance industry andposition insurance companies to assume‘big-ticket’ risks. There is the need to giveconsideration to the timing of the announcement and the time-frame within whichinsurance companies will be required tomeet the new capital requirement.EMID will enable the Police have access andconfirm the authenticity of motor insurancepolicies. It will also ensure that all vehiclesplying the roads are appropriately insured.These policies could have positive impactson the industry.08
Ghana 2019 Budget Commentary Economy and Sectoral Outlook for 20191.EducationThe Governmentannounced plans to continue the Free SHS Policy andthe double track educational system in 2019. Total ofGHS 1.68 billion has beenbudgeted for theprogramme.Successful implementationof the Free SHS programme willbe heavily dependent on availabilityof infrastructure. The doubletrack-system will most likely onlyaddress the challenges of infrastructure in the short-term. The cost ofthe programme could also doubleby 2020 when the next stream ofstudents enroll.3.The budget emphasised theMinistry of Education’s intentionto provide continuous professional training to all licensedteachers in 2019.2.The Governmentannounced its commitment to establish theUniversity of Environmentand Sustainable Development as a centre ofexcellence in Agricultureand Engineering.Infrastructural capacity of theexisting universities should also bepursued alongside the desire tobuild new universities. Governmentshould consider resourcing Agriculture and Engineering faculties in theexisting universities that lack basicinfrastructure.This initiative is should be designed to cure gapsidentified from the licensure examination forteachers across the country.09
Ghana 2019 Budget Commentary Economy and Sectoral Outlook for 20194.In 2019, the Governmentintends to put togetherthe necessary regulatorybill with stakeholderconsultations, for theNational Institute ofCommunication andMedia Arts.Processes have alsocommenced to merge GhanaInstitute of Languages, National Filmand Television Institute (NAFTI) and theGhana Institute of Journalism (GIJ) intoNational Institute of Communication andMedia Arts. There is the need for continuous engagement with relevant stakeholdersand for the incorporation of technologiessuch as artificial intelligence and bluescreen technology which areenhancing creativity and helpingto drive down costs.105.Government commencedthe construction of 20state-of-the-art Technical,Vocational Education andTraining (TVET) as well asupgrading of 34 Vocational Training Institutes.This initiative is essential inrepositioning technical and vocational training as an equal alternative to secondary education. Ifsuccessfully implemented, government could reduce the placementchallenges that have characterizedthe commencement of the Free SHSprogramme.6.Roll out of theBasic Science,Technology,Engineering andMathematics(STEM) CentresThis programme should be implemented together with strengtheningexisting initiatives such as theretooling of existing scienceresources centres. STEM educationwill help our students to becomeinnovative adults with criticalthinking and problem solving skillswhich are needed in an increasinglytechnological driven world.
Ghana 2019 Budget Commentary Economy and Sectoral Outlook for 2019EnergyPower generationand distributionPower sectordevelopments Installation works of the 340MW CenPowerProject have been completed while theinstallation works on the 147MW Early PowerProject is at 40% of completion. The Ministry of Energy is also facilitating therelocation of the 450MW Karpowership fromTema to Sekondi to utilise the gas producedfrom the Sankofa Fields.122 out of the targeted 1,796 communitieswere connected to the national grid,increasing the national electricity access rateto 84.3%. 1,250 communities are expected tobe connected in 2019. Works on transmission lines by Ghana GridCompany are far advanced.Aboadze-Prestea 330kV Transmission Line(which is 98% complete)The Prestea-Kumasi 330kV Transmission LineThe Kumasi-Bolgatanga 330kV TransmissionLine.The 225kV Bolgatanga-Ouagadougou Interconnection project, which is a component ofthe West African Power Pool (WAPP)Inter-zonal Transmission Hub Project, wascompleted and inaugurated by thePresidents of Ghana and Burkina Faso. Thisis currently allowing the export of 70MWpower from Ghana to Burkina Faso.- -In 2019, GRIDCo will initiate the implementation of the following projects:161kV Aboadze-Takoradi line upgradeproject;161kV Takoradi-Tarkwa-New Tarkwa-Preatealine upgrade project; and330kV A4BSP (Pokuase) - Nkawkaw-Anwomaso line project.The CenPower project which has been indevelopment since 2012 is a significantaddition to the generation capacity. Therelocation of the Karpower barge is highlystrategic, and could create a demand for upto 90 million standard cubic feet per day(mmscfd) from the West African Gas PipelineCompany for the plant.11
Ghana 2019 Budget Commentary Economy and Sectoral Outlook for 2019Renewable andalternative energydevelopmentprogramme.As part of the Government’s strategy to increaserenewable energy technologies, 24,770 solar lanternswere sold at subsidized rates to rural households. Anadditional 100,000 lanterns are expected to bedistributed in 2019, promoted by the general reduction in demand for kerosene as a source of light inrural areas.The Solar Rooftop Programme was also initiated andextended this year to most public institutions toreduce utility expenses. Contracts for the installationof the 65kW solar rooftop systems were awarded bythe Ministry of Energy.In pursuit of the green initiatives in 2019, the Ministryof Energy will introduce tax free solutions for FullElectrical Vehicles in order to promote a technologyshift from fossil fuel-based vehicles. Fossil fuel is themain source of local air pollution, which posessignificant health challenges to our people.The largest housing estate project in West Africa iscurrently being constructed at the Dawhenya irrigation site. This greenhouse project currently includes75 green houses; however, an additional 100 greenhouses will be added in 2019.12The tax-free and alternative energy development program will serve as a strategic toolto encourage more Ghanaians to usesustainable and renewable energy. Renewable energy will provide access to modern,reliable and affordable energy services. It willalso reduce energy related externalitiessuch as greenhouse gas emissions and localpollution. However, the use of Electricvehicles will only be feasible if infrastructurechallenges such as the availability of electriccharging stations are adequately addressed.
Ghana 2019 Budget Commentary Economy and Sectoral Outlook for 2019Ghana’s health sector has seen significantinvestments in the last couple of years.Several new hospitals have been builtover the last five years – including the 650bed University of Ghana Medical Centre.Health13Ministry of Health’s strategy to achievehigh-quality care at a lower cost in 2019includes completing four district hospitals atTwifo Praso, Tepa, Konongo and Salaga aswell as one regional hospital at Sewua. In2019, the construction of seven districthospitals and provision of an integrated ITsystem will kick-off at Dodowa, Sekondi,Formena, Garu Tempani, Kumawu, Abetifiand Takoradi European Hospital.The conversion of Ho Regional Hospital toTeaching Hospital is in progress whereasthe process of upgrading the HohoeMunicipal Hospital to a Regional Hospitalwill commence in 2019.Regardless, hospital bed to populationratio remains very low at 0.9 bed perevery 1,000 people as a result of historical under investment in healthcareinfrastructure in the last three decades.24The proposed new hospital projects areessential to improving overall access tohealthcare and healthcare delivery.In 2019, the following projects will continue: completion and equipping of Bekwaidistrict hospital; four district hospitalprojects at Sawla, Tolon, Somanya, Buipeand a polyclinic at Bamboi; constructionof Axim hospital; and rehabilitation ofEffia-Nkwanta emergency. The Parliamenthas also granted a USD50m loan for thecompletion of University of GhanaMedical Center Phase II.The construction of 15 Community-basedHealth Planning and Services (CHPS):Greater Accra Region – two CHPS;Brong-Ahafo Region – five; Ashanti Region– two; Eastern Region – three; andWestern Region - three.However, there is the need for government policy to also focus on retooling andrehabilitating existing healthcare infrastructure, as well as enhancing the humanresource capacity for healthcare deliveryin the country.5The construction of one district hospitaland five Polyclinics will continue in Akontombra, Bogoso, Wassa Dunkwa, Mpoho,Elubo and Nsuaem in the Western Region.There will also be an expansion andequipping of facilities at Aburi, Kyebi,Atibie and Mampong.13
Ghana 2019 Budget Commentary Tax Policy ProposalsTax PolicyProposalsReview of personal income tax bandExtension of tax stamp to textilesVAT zero-rating of locally made textilesWithholding tax on small scale minersat point of exportTax exemptions policy reviewIntensified tax compliance measures14
Ghana 2019 Budget Commentary Tax Policy ProposalsReview of personal income tax bandGovernment in 2018 reviewed the top personalincome tax rate and band from 25% on monthlytaxable income exceeding GHS3,241 to 35% onmonthly taxable income exceeding GHS10,000.The Minister has proposed that government willreview the band to make the top marginal tax rate of30% on monthly taxable income exceedingGHS20,000. The Minister further proposed that thetax-free income tax band will be reviewed upward topeg it to the new monthly minimum wage.The proposed review of the personalincome tax band is expected to providerelief to employees and all taxable individuals who had additional personal tax liabilitysince the introduction of the35% tax on income exceeding theGHS10,000.Also, the current tax-free tax band ofGHS261 per month is expected to bereviewed upward to GHS288using the new dailyminimum wage of GHS 10.65to take effect from January 2019. The effectof these reviews will, all other things beingequal, be an increase in the net income ofemployees and other taxable individualsparticularly those with taxable incomeexceeding GHS10,000 per month.15
Ghana 2019 Budget Commentary Tax Policy ProposalsExtension of tax stamp to textilesThe Minister announce
Ghana’s Minister of Finance, Hon. Ken Ofori-Atta, presented the 2019 budget statement and economic policy to Parliament on Thursday 15 November, 2018. The 2019 budget statement and economic policy is under the theme “A Stronger Economy for Jobs and Prosperity”. Accordingly, the budget is centered on accelerating
81. Ghana Library oard 82. Ghana National Fire Service 83. Ghana National Gas ompany 84. Ghana National Petroleum orporation 85. Ghana National Sec. Sch. 86. Ghana News Agency 87. Ghana Police Service 88. Ghana Ports And Harbours Authority 89. Ghana Post ompany 90. Ghana Post ompany Limited 91. Ghana Prisons Service 92.
Ghana Library Board Ghana Maritime Authority Ghana Metrological Agency Ghana National Gas Company Limited Ghana National Petroleum Corporation Ghana News Agency Ghana Railway Development Authority Ghana Reinsurance Company Ltd Ghana Revenue Authority Ghana Shippers Authority Online Procurement Planning Submissions As At 14th July, 2021
Ghana Library Board 53. Ghana National Fire Service 54. Ghana National Gas Company 55. Ghana News Agency 56. Ghana Police Service 57. Ghana Post Company 58. Ghana Prisons Service . Sekondi-Takoradi Metropolitan Assembly 125. Shama Sec. Sch 126. SIC Life Company Limited 127. Social Security and National Insurance Trust (SSNIT) 128. Sogakope .
Bible Commentary Acts of the Apostles, The Barclay, William 1 B Bible Commentary AMOS - Window To God Kirkpatrick, Dow 1 K Bible Commentary Amos - Window to God Kirkpatrick, Dow 1 K Bible Commentary Basic Bible Commentary, Acts Sargent James E. 1 S Bible Commentary Basic Bible Commentary, Exodus & Leviticus Schoville, Keith N. 1 S
Budget (Annual Budget) Revenues Expenses Multi-year (Actual; Budget; Budget) Project (program) Budget A project budget is the estimated financial plan for a project, for which funding is required. The total program budget is not just the grant r
High School, Ghana, bCollege of Distance Education, University of Cape Coast, Ghana, cIndependent Researcher, Ghana, dE-learning and Technology Unit, College of Distance Education, University of Cape Coast, Cape Coast, Ghana. eDeputy Director, Directorate of ICT's, University of Cape Coast, Cape Coast, Ghana.
Doing Business and Investing in Ghana – 2018 is published by PricewaterhouseCoopers (PwC) Ghana. This publication is intended to provide a quick overview of the business environment in Ghana. We have endeavoured to take reasonable care in compiling this publication, which presents the position of Ghana in respect of the geographic facts,
ARO37: Wilkhouse: An Archaeological Innvestigation . noted that this 75-year term was a breach of the 1705 entail which limited wadsets on the . Sutherland lands to 19 years and was deemed to be “a mark of exceptional favour” towards Hugh Gordon. Hugh Gordon was succeeded by his son John Gordon of Carrol who in turn died in 1807. He was then succeeded by his son, Joseph Gordon of Carrol .
