According to the Finance Minister, Hon Ken Ofori-Atta, the performance of the economy in 2016 was far from the budgeted growth and outturn under the previous administration. Inflation increased from 17.7 percent at the end of 2015 to 19.2 percent in March 2016 and later declined to 15.4 percent in December. Inflation for 2017 is targeted at 11.2 percent at year-end. This, if achieved, will stabilise price levels to some extent. To stimulate growth and development under the current government, the year will see several social and economic interventions and a number of tax cuts. Government will streamline Energy Sector Levies to accommodate existing legacy debt to improve liquidity in the banking sector and the private sector. An increase in banks’ liquidity has the potential of stimulating growth in the private sector as the banks will have enough money to grant loans to customers and also allow the banks to take on more projects than before. Companies operating in the oil and gas, financial services, telecommunications and mining sectors are to list a minimum percentage of their shares on the Ghana Stock Exchange (GSE) within five years of commencement of operations and help to increase the activities on the capital market. This will make the GSE attractive in the sub-region, draw investment and help develop the Ghanaian capital markets.
Why this matters
To stimulate growth and development under the current government, the year will see several social and economic interventions and a number of tax cuts. Government will streamline Energy Sector Levies to accommodate existing legacy debt to improve liquidity in the banking sector and the private sector. An increase in banks’ liquidity has the potential of stimulating growth in the private sector as the banks will have enough money to grant loans to customers and also allow the banks to take on more projects than before. Companies operating in the oil and gas, financial services, telecommunications and mining sectors are to list a minimum percentage of their shares on the Ghana Stock Exchange (GSE) within five years of commencement of operations and help to increase the activities on the capital market. This will make the GSE attractive in the sub-region, draw investment and help develop the Ghanaian capital markets.
To curb the issues of “Ghost” names on Government payroll, Government intends paying salaries using the Ghana Inter-Bank Payment and Settlement Systems’ (GhIPSS) e-zwich platform as a pass-through filter. If this is done, the meagre government resources that otherwise would have ended up in wrong hands will be put to proper use to benefit the citizenry.
Government will ensure that entrepreneurs receive the maximum benefit by introducing programmes such as business development services, financing, among others, to support these businesses.
