Highlights from the Mid-Year Budget 2019.
1. Macroeconomic state.
GDP growth figures remain respectable despite the downward revision of targeted end of year GDP growth.
Inflation rates remains far from the target of 8%.
Public debt remains a chronic problem.
2. Revenue measures.
Communications Tax has been increased, despite the $178million agreement with Kelni-GVG signed in 2018. An initiative designed to prevent fraud and maximise tax revenue from the communication sector.
The controversial and much criticised luxury vehicle levy has been axed.
3. Additional Funds request.
The government has put in a request for additional funds to the tune of GHS 6.37 Billion. This will take expected government spending to GHS 85.14 Billion for the year.
4. Achievements and Projects.
Some key achievements from the the beginning of the year include; The banking sector clean up, the rehabilitation of the Tema-Accra railway and the expansion of the National Entrepreneurship Innovation Programme (NEIP).
5. Government Promises.
As per usual The Government have stated a few projects and programmes they wish to start or complete before the years end.
Such projects include; The cancellation of take-or-pay energy contracts in favour of take-and-pay style agreements. How exactly the government plans to re-negotiate such deals with relevant stakeholders remains unclear.
Other infrastructural based pledges such as commitments to the Poverty Eradication Programme (IPEP) and continued road constructions were made.