Finance Minister seeks GH¢6.37b in supplementary budget
Mr Ken Ofori-Atta, the Finance Minister has requested Parliament to consider and approve an amount of GH¢6.37 billion as supplementary estimates to carry out government’s socio-economic agenda.
The amount is in addition to the original appropriation of GH¢78.7 billion, bringing total appropriation for the 2019 fiscal year to GH¢85.1 billion.
He said the request for additional money is necessary because of the revisions to the 2019 fiscal framework, which rendered the 2019 appropriation of GH¢78.7 billion approved in November 2018 inadequate, to cater for the additional programmed needs.
Mr Ofori-Atta, who made the request in his presentation of the 2019 supplementary budget statement to Parliament, said the revised total revenue and grants is GH¢58.9 billion, 0.01 percentage point lower than the original 2019 Budget estimate of GH¢58,904.9 million.
He said of this amount, non-oil tax revenue is projected at GH¢43.1 billion, and is expected to be boosted by stronger performance from higher corporate income taxes, petroleum excise taxes and domestic VAT in the second half of the year.
“The effect of the reduction in the benchmark import values, which became effective from April 2019, will be mitigated by enhanced trade tax compliance, following the introduction of additional efficiency measures at the ports, including operations by Meridian Port Services Ltd,” he said.
“Non-tax revenues are expected to be enhanced by the proceeds from the sale of electromagnetic spectrum, as well as fees from the renewal of telco’s licenses,” he added.
He said total expenditure (including arrears clearance) for the year, is now estimated to be GH¢74.6 billion, about 1.6 per cent higher than the 2019 Budget estimate of GH¢73.4 billion.
He noted that upward adjustments to interest payments reflect partly the effect of a higher exchange rate than programmed, as well as higher net domestic borrowing to meet some regional emergency security and energy expenses in the first half of the year.
He noted that additionally, upward adjustment in projected expenditures for Goods and Services were to meet critical expenses on security.
Mr Ofori-Atta said the revised overall budget deficit was, therefore, programmed at 4.5 per cent of gross domestic products (GDP). He said this deficit target was consistent with the national debt sustainability analysis for 2019 and the medium-term.
He said the estimated World Bank facility of $500 million and the proceeds from the monetisation of mineral royalties are expected to moderate domestic borrowing in the second half of the year.
Mr Ofori-Atta said the crystallisation of energy sector contingent liabilities in respect of take-or-pay contract obligations with Independent Power Producers (IPPs) estimated at GH¢5.1 billion for 2019 is being amortised, thus increasing the requirements for external amortisation above the amount originally provisioned for in the 2019 Budget.
Source: GNA