Keynotes from the 2024 budget reading in Parliament – Update two (2)

2024 NKUNIM budget

The following are some key highlights from the 2024 Nkunim budget presentation on the floor of parliament by Finance Minister Ken Ofri Atta

Based on the estimates for Total Revenue & Grants and Total Expenditure (including arrears clearance), the overall Budget balance to be financed is a fiscal deficit of GH¢ 61.9 billion, equivalent to 5.9 percent of GDP.

The potential interest rate saving from the ongoing external debt operation will further bolster public finance sustainability.

Acting through the Ghana Revenue Authority (GRA) as per Section 4 of the Ghana Revenue Authority Act, 2009
(Act 791), introduced the property rate reform project.

This large decrease comes from the combination of fiscal consolidation efforts of 4.9 percentage points of GDP, reflecting an adjustment in revenue by 1.0 percentage point and primary expenditure by 4.0 percentage point of GDP.

Total Expenditure (commitment) is projected at GH¢226.7 billion (21.6 percent of GDP). This projection reflects a reduction of 6.1 percentage points of GDP in total expenditures (commitment basis) relative to the outturn in 2022.

Total Revenue and Grants is projected at GH¢176.4 billion (16.8 percent of GDP) and is underpinned by permanent revenue measures largely Tax revenue measures amounting to 0.9 percent of GDP.

The disruptions in energy and food prices, and efforts to combat record-high inflation through tightening global monetary policies, have considerably slowed down economic activity globally.

Global economic recovery remains sluggish primarily due to a confluence of setbacks, including the lingering effects of supply-chain disruptions and geopolitical events, and the increasing cost of living across many economic blocs.

That is the promise of this Budget. And we will keep our eyes firmly fixed on the future and build lasting prosperity for this and the next generation.

As the agreed host of the Climate Vulnerable Forum (CVF) Secretariat, we are galvanising the coalition of 68 nations and 1.7 billion people to shape the climate discourse and secure resources for a just energy transition.

Today, our country hosts the headquarters of the AfCFTA. We also have a privileged position in leading the climate change charge.

We are also positioning a generation of Ghanaians to secure our leadership in the global arena.

Ultimately, our ambition remains to build an entrepreneurial nation and create an additional minimum of 1 million jobs for the Ghanaian youth over the near-term. We have done this before with 2 million jobs in years, but we must move faster.

Office space has already been secured. Our goal is to realise Ghana’s potential to become a global BPO powerhouse,

Employing over 250,000 Ghanaians over the next few years.

YEA is about concluding negotiation with CCI, the business process outsource (BPO) operator in sub-Saharan Africa for the establishment of a call centre that can see the direct creation of 20,000 local jobs for our young graduates.

In this view the Ministry has teamed up with MIDA and in committing GH¢1 billion to ensure that our Enclave project for import substitution is successful.

Indeed, given the potential to upscale and the multiplier effects that our small and medium-sized businesses possess, Government intends to scale up support to young entrepreneurs and fledgling businesses, with a singular aim to create sustainable jobs across all communities.

We will, through the Ghana Mutual Prosperity Dialogue, be intentional about collaborating with the private sector and our development partners to support local businesses attract FDI and enhance the economic prospects of our people.

We will continue to invest in on-going projects, and on the external front, we will conclude negotiations with the Official Creditor Committee to ensure that work on eligible externally funded projects resume.

Ghana has paid its dues, has turned the corner, and getting back on track. Despite these successes, we have to do more to reinforce our stability and guarantee decent jobs with good pay for the young people.

As such, through the 2024 Budget, we will deliver even more investment across the real sector to place our economy on a firm growth trajectory that will create more jobs, safeguards our climate prospects and deeply entrench Ghana as the seed country for Africa’s development renaissance.

THe government has also invested GH¢1.7 billion in the National Identification Scheme to ensure that 17.5 million eligible Ghanaians acquire security-sensitive ID Cards. This has laid the foundation for a prosperous future where digitalisation provides more convenience, introduces an added layer of efficiency in delivering public services, and enhances our ability to safeguard Ghana’s national interests.

The 2024 Budget will set out the broad medium-term policy framework underpinning our approach towards recovery and stability with growth.

We will cross the GH¢1 trillion Gross Domestic Product (GDP) mark for the first time in our economic history.

Ghana’s economy under President Akufo-Addo’s final year in office is projected to be valued over GH¢1
trillion in 2024 from the GH¢219.5 billion in 2016.

With such a milestone ahead of us, Government is protecting, at all cost, the foundation for sustained economic expansion. A foundation that has been achieved through the sweat and patience of the Ghanaian people.

We pledge to protect this for all our people and especially for private sector growth. And we shall do so by ensuring that the enabling factors are in place and accessible to all.

These will include reliable energy supply, stable Cedi, lower inflation and lower interest rate regimes, access to private sector credit, infrastructure provision, food security, national security, and inter-continental market linkages through increasing active platforms such as the AfCFTA.

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