Finance Minister, Seth Terkper
The 2016 budget will be presented to Parliament by the Finance Minister Seth Terkper on November 17.
Parliament proposed the date to the Finance Minister, Seth Terkper, Thursday.
For some economic analysts, one of the key areas to look forward to in the 2016 budget is government’s spending plan for next year’.
That is whether there would be an expenditure increase to take care of election-related issues or there would be some significant cuts in line with the IMF programme aimed at fast-tracking measures already implemented to reduce the country’s rising public debt.
As at July this year, the public debt stood at 83 billion Ghana cedis, hence a sharp increase in the expenditure envelope might cause overruns again by the end of the year.
The development might lead to a potential tax hike to make up for the election-year overrun.
However with the declining earnings from commodity exports like gold, cocoa and crude oil government might not have any option, than to cut its expenditure or look at other revenue measures like improving collections, or reviewing laws to widen the tax net.
According to the 2015 revised budget, government is hoping to spend about 40 billion Ghana cedis by the end of this year.
Government’s own fiscal report indicates that it has spent 24 billion Ghana cedis as at August this year, while revenue stood at 20 billion Ghana cedis.