Following the widespread controversy the has surrounded government’s 2022 Budget Statement and Economic Policy, Finance Minister, Ken Ofori-Atta, has announced that he has written parliament with details of some amendments the government is proposing to the budget.
According to Ken Ofori-Atta, the amendments submitted took into consideration concerns raised by various stakeholders and indivduals including the proposals from the minority in parliament.
Speaking at a press briefing on Monday, December 6, 2022, the Finance Minister announced that “on behalf of the President I have written to the Right Honorable Speaker of Parliament with details of amendments in response to emerging concerns by all stakeholders including the Minority caucus.”
He therefore outlined some modifications the government intends to capture in a revised budget statement.
The following are the amendments presented to parliament:
- Agyapa Royalties deal; we shall amend paragraphs 442 and 443 to take out references to mineral royalties collateralization. It is important to note that, any reference to Agyapa was for informational purposes, and as such was not reflected in the fiscal framework
- Tidal Waves disaster; In respect of the unfortunate tidal waves which rendered about 3,000 people homeless in Keta, we shall make the necessary budgetary allocations of at least GHS10 million to complete the Feasibility and Engineering studies for the coastal communities adversely affected. We will broaden the scope of the study to consider a more comprehensive solution to protect Ghana’s 540 Km of coastline, including the 149 Km between Aflao and Prampram. Meanwhile, NADMO has responded to the humanitarian crisis created by the tidal waves on the Keta coastline.
- Aker Energy transaction; we shall amend paragraph 829 of the 2022 Budget on the acquisition of a stake from Aker Energy and AGM Petroleum by GNPC, to reflect the resolution of Parliament dated 6th July, 2021 that “the terms and conditions of the loan for the acquisition of the shares shall be brought to Parliament for consideration pursuant to article 181 of the Constitution; and
- Benchmark values; we shall avert any hardships to importers and consumers while safeguarding the interest of local manufacturing industries to secure and expand jobs for our people. This administrative exercise, which reviewed 43 out of 81 line items, has the objective to promote local manufacturing and the 1D1F policy, including the assembling of vehicles. It is important to note that this adjustment affects only 11.4% of the total CIF value, of which 50% is for vehicles. From our analysis, the potential increase in retail prices should be relatively insignificant and therefore inflation should be muted. The YouStart policy will also support our accomplished Traders with appropriate training and access to capital to become Manufacturers in order to expand the industrial base of our society and our import substitution strategy, in line with our Ghana Beyond Aid agenda.
- E-Levy: On the matter of the E-levy, having regard to its serious fiscal implications, we will continue our consultations with the Minority Caucus in Parliament and other relevant stakeholders, with a view to achieving consensus and reverting to the House in the shortest possible time.
“We will work with the relevant Committees of Parliament to reflect these modifications in the 2022 Budget, as is the usual practice before the Appropriation Bill is passed. Any other concerns which may emerge shall be addressed during the discussions of the estimates by the Committees, as has been the tradition,” the Finance Minister added.