Professional Documents
Culture Documents
KPMG 2023 Budget Highlights
KPMG 2023 Budget Highlights
Highlights
Budget Statement and Economic Policy of
the Government of Ghana for the
2023 Fiscal Year
November 2022
Foreword
“Restoring and Sustaining Macroeconomic Stability and Resilience through Inclusive Growth & Value Addition”
Countries around the world indeed are experiencing o Aggressively mobilise domestic revenue through efficiency in government expenditures. Government
challenging times and Ghana is no exception. Global various tax reforms; proposes to integrate public procurement approval
economic activity in 2022 has experienced major o Streamline and rationalise expenditures; processes with GIFMIS to ensure that projects approved
disruption due to four broad-based factors: o Boost local productive capacity; are aligned with budget allocations, review key government
geopolitical tensions, cost-of-living crisis, tightening o Promote and diversify exports; programmes to reflect relevance, promote efficiency, and
financial conditions, and medium-term impacts of o Protect the poor and vulnerable; ensure value for money and review the efficiency of
the COVID-19 pandemic. As a country that is o Expand digital and climate-responsive physical Statutory Funds.
susceptible to external shocks, the spillover effect infrastructure; and
Whilst the above initiatives are laudable, government must
of these factors in addition to our domestic o Implement structural and public sector reforms.
put in place the necessary mechanisms to ensure
problems have exacerbated our economic
disciplined implementation.
challenges. With the current high levels of debt and recent
downgrades in credit ratings, enhancing domestic In addition to the above revenue and expenditure measures,
In the midst of the current challenges, government
Anthony Sarpong is considering a number of policy options to restore
revenue mobilisation remains a top priority for
government. Consequently, government has
government is hoping to close the IMF negotiations as soon
practicable. It has been generally acknowledged that an IMF
Senior Partner confidence in the economy, reduce the rising debt
proposed a number of revenue measures including: programme has the potential of restoring confidence in the
levels and boost economic activity.
introducing an additional PAYE tax band of 35%, economy and resetting the growth potential. This was
On 24 November 2022, the Minister for Finance, increasing VAT by 2.5%, introducing a minimum confirmed in the results of our pre-budget survey
Hon. Ken Ofori-Atta presented the Budget chargeable income tax, broadening the scope of the conducted in October 2022.
Statement and Economic Policy (the budget) under National Fiscal Stabilisation Levy (NSFL) to include
Indeed, a significant number of our respondents are of the
the theme, “Restoring and Sustaining additional industries, increasing the concessionary
view that an IMF programme could help to salvage the
Macroeconomic Stability and Resilience through tax rate of 1% to 5% amongst others. The
economy from the current crisis, although others are calling
Inclusive Growth & Value Addition” to Parliament proposed measures have been summarised in this
for structural changes to eliminate the need for future IMF
on behalf of His Excellency Nana Addo-Dankwa document under the section on tax and revenue
interventions.
Akufo-Addo. measures.
The policies and actions we take in times like this must
The budget seeks to support government’s policy It is important to note that, to achieve the above
inspire confidence in our people, give them hope and
objectives of restoring macroeconomic stability and measures, a consultative approach will ensure that
empower the change that we desire. The agility in
accelerating economic transformation. It is the concerns of individuals, households and
responding to economic shocks is a critical feature of
anchored on a seven-point agenda which is businesses are well addressed before these
resilient economies. We urge government to quickly
documented in government’s Post-COVID-19 measures are implemented.
execute these measures with discipline to restore the
Programme for Economic Growth (PC-PEG) for
economy onto a path of stability, resilience, and inclusive
Ghana’s economic transformation. The Programme Government has also outlined expenditure
growth.
focuses on the following priority areas: management priorities which should help enhance
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 2
Contents
01 Executive Summary 06
02 Global Developments 11
03 The Economy 14
04 ESG 20
06 Expenditure Initiatives 31
07 Sector Initiatives 33
08 Outlook 48
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 3
2023 Budget Theme
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International
© 2022 KPMGLimited, a private English
a partnership company
established underlimited by guarantee.
Ghanaian law and a All rights firm
member reserved.
of the Printed in Ghana.
KPMG global organization of independent member firms affiliated with KPMG Highlights 4
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana.
Document Classification: KPMG Public 4
Introduction
This year’s budget is anchored on a seven-point agenda aimed at restoring macro-economic stability and accelerating economic transformation as articulated
in the Post-COVID-19 Programme for Economic Growth (PC-PEG).
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 5
01
Executive
Summary
Executive Summary
2022 Provisional Outturn
24.5%
of Total Revenue of Total Expenditure
GH¢ 109.4bn
Total Expenditure
2.9
Monetary Policy Rate as at Debt to GDP Ratio
October 2022
76.7%
76.0% 75.9%
4.0%
GDP Growth Rate as
months
Import cover as at
Q3 2022
7.4%
Fiscal Deficit as at
at June 2022 September 2022
2020 2021 Sep-22
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 7
Executive Summary
2023 Targets
2.8%
nominal GDP in 2023. Proportion of Tax Proportion of Non-Tax
Revenue to Total Revenue to Total
Revenue – 2023 Revenue – 2023
Fiscal Deficit target
20% Tax Revenue Breakdown (GHS bn)
GDP Growth target for 2023
for 2023
47%
59.8
33%
44.9
Fiscal Targets for 2023
GH¢ 144bn
Agriculture Industry Services 18.9%
Inflation target for 2023
Total Revenue & Grants Proportions of Interest Payments to 14.0
Revenue & Expenditure in 2023
GH¢205.4bn
Total Expenditure 37% 26%
of Total Revenue of Total Expenditure
Income and
Property
Taxes
Taxes on International
Domestic
Goods and
Services
Trade Tax 3.3 months
Import cover target for 2023
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 8
Executive Summary
Direct Taxes
01 02 03
Corporate Income Tax Personal Income Tax Withholding Tax (WHT)
• Increase the existing 1% temporary concessional • Introduce an additional PAYE band of 35%. • Introduce a separate WHT regime for gains
rate for eligible entities to 5%. on realisation of assets and liabilities.
• Review the upper limit of benefit-in-kind for
• Implement a minimum chargeable income vehicle element for PAYE purposes. • Introduce WHT on gaming winnings.
system. • Review the 15% optional rate for individuals
on gains from the realisation of assets and
• Convert the National Fiscal Stabilisation Levy
liabilities.
(NFSL) to Growth and Sustainability Levy (GSL)
to cover all entities. • Provision of tax relief for early withdrawal
from Provident Fund and Personal Pension
• Provide a unified duration for Carry-Over of Tax
04
Schemes for individuals who lose their jobs
Loss for all industries. permanently or their capital due to the
• Limit the deduction of foreign exchange losses current economic crisis.
Vehicle Income Tax & Income Tax Stamp
to realised loss and ensure all realised foreign
exchange losses of capital nature are capitalised. • Review of the Vehicle Income Tax (VIT)
• Introduce a tax on Gross Gaming Revenue to Sticker and Income Tax Stamp rates.
replace Corporate Income Tax and VAT on these
activities.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 9
Executive Summary
Indirect Taxes Non Tax and Other Revenue Measures
01 02 01
Customs & Excise Value Added Tax (VAT) Non-Tax Revenue Measures
• Implement the Customs Tariff with the • Increase the VAT rate by 2.5% from • Full roll-out of the Unified Common Platform for property rate
2022 version of the Harmonised 12.5% to 15%. administration.
Commodity Description and Coding • Review the registration threshold for • Re-introduction of road tolls on selected public roads and
System (HS Code). VAT. highways.
• Introduce a self-clearance system for • Undertake major reforms with respect • Revenue Assurance and Compliance Enforcement (RACE)
imports by individuals without the to VAT exemption. programme to focus on revenue from imported cargo.
services of a Customs House Agent. • Full rollout of Electronic VAT Invoicing
• Revise the taxation of cigarettes and (E-VAT Invoicing) to Large Tax Payers
(including listed companies).
02
tobacco products to align with ECOWAS
protocols.
• Introduce excise tax on electronic
Other Revenue and Administrative Measures
03
smoking devices and liquids.
• Provide guidelines and procedures for full implementation of the
• Increase excise tax rate for spirits above
Exemptions Act, 2022 (Act 1083).
that for beer.
Electronic Transfer Levy (E-Levy)
• Institute a freeze on tax waivers for foreign companies.
• Full withdrawal of the existing
• Review the E-Levy rate from 1.5% to • Review tax exemptions for companies in the free zone, mining, oil and
benchmark discount policy on imported
1%. gas sectors.
goods.
• Removal of daily exemption threshold. • Pursue Additional Oil Entitlement in relation to the Jubilee Field.
• Full implementation of Excise Tax Stamp
on Textiles by end of first quarter 2023. • Enhance administrative mechanisms to improve rent tax compliance.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 10
02
Global
Developments
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
• The Federal Reserve has increased the fed rate 6 times this year to
tackle inflationary pressures. • Inflation in SSA is forecasted to be 14.4% and 11.9% in 2022 and
2023 respectively.
• The dollar has appreciated against major currencies due to the
tightening of the monetary policy in the US. • Growth is expected to slow sharply due to tighter global financial
conditions, and a dramatic pickup in global inflation.
• Growth in the United States is projected to be 1.6% and 1.0% in 2022
and 2023 respectively. • Growth in SSA has been revised downwards to 3.6% and 3.7% in
2022 and 2023 respectively. The region is experiencing a negative
• The contraction of the economy is due to declining disposable income shift in commodity terms of trade, lower trading partner growth and
and higher interest rates. tighter monetary conditions.
• The European Central Bank has ended net asset purchases and • Growth in the Middle East and Central Asia is projected to be 5.0% in
continues to raise interest rates. 2022 and moderate to 3.6% in 2023. The upward revision is due to the
favourable outlook for the region’s oil exporters and an unexpectedly
• Growth in the Euro area is projected to be 3.1% in 2022 and 0.5% in
mild impact of the war in Ukraine.
2023. The upward revision of growth (0.5%) in the third quarter of
2022 resulted from recovery of tourism-related services and • Growth in Emerging Asia has been revised downwards to 4.4% and
industrial production in economies like Italy and Spain. 4.9% in 2022 and 2023 respectively. Frequent lockdowns in China and
the rapid weakening of its property sector has led to growth
• The downward revision of growth in 2023 reflects spill over effects
contraction.
from the Russia-Ukraine war and impact of the Russian gas supply
cuts on economies. • This would impact global trade and activity due to supply chain
disruptions.
Gold
$ 1,775
▪ Average inflation
Gold is projected to average $1,700 per ounce is expected to decline due to
monetary policy tightening. Policy rate adjustments
per ounce in 2023 and $1,650 in 2024. ▪ 1
by the Central Bank is expected
to tackle the persistent inflation.
Cocoa
6.8% Cocoa is forecasted to average $2,350 per
tonne in 2022. The outlook is for cocoa to
▪ Pharmaceutical sector
boost
is expected from the local
Global cocoa average $2,300 per tonne in 2023 and vaccine production. Agriculture sector
production ▪ 1
$2,340 per tonne in 2024. growth would be affected by
the contraction of the cocoa
subsector.
Official Development Assistance An agreement was finally FDI inflows to Africa hit a Ghana was the second
$161bn (ODA) from official donors rose to reached to establish and $4.5bn
COP 27 record $ 81 billion in 2021. highest recipient of
Net ODA operationalise a new loss FDI Inflows Remittances
an all-time high of USD 178.9 remittances in Sub-
billion in 2021. and damage fund. Saharan Africa in 2021.
Macroeconomic snapshot
Macroeconomic 2021 2022 Revised 2022 End Sept. 2023
Performance Outturn Targets Outturn Targets
Import Cover
(Number of months cover)
4.3 3.5 2.9 3.3
* As at October 2022
** As at Q2-2022
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 15
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
Tax Revenue (Net of refunds) – GH¢ 49.1 billion Compensation of Employees – GH¢ 27.1 billion
▪ Taxes on Income and Property: GH¢ 24.8 billion ▪ Wages & Salaries constitutes ~ 91%
▪ Taxes on Domestic Goods and Services: GH¢ 20.9 billion ▪ Social Contributions ~ 9%
▪ International Trade Taxes: GH¢ 6.2 billion
▪ Tax refunds: (GH¢ 2.8 billion)
Use of Goods and Services – GH¢ 4.2 billion
▪ Representing 0.7%of GDP
Social Contributions – GH¢ 280 million
▪ 45% below 2022 target of GH¢ 511 million
Interest Payments – GH¢ 32.1 billion
▪ Domestic: GH¢ 25.1 billion ~ 78%
▪ External: GH¢ 7 billion ~ 22%
Non tax revenue – GH¢ 11 billion
▪ Representing 1.2% of GDP
Revenue Expenditure
Subsidies, Social Benefits etc. – GH¢ 25.2 billion
▪ GH¢ 167 million for Subsidies
Other Revenue – GH¢ 4.2 billion ▪ GH¢ 374 million for Social Benefits
▪ This is made up of SSNIT contribution to NHIL and proceeds ▪ GH¢ 7.1 billion for Other Expenditure
from the Energy Sector Levies, representing 0.7% of GDP ▪ GH¢ 17.6 billion for Grants to Other Government Units
✓ Total government revenue and grants of GH¢ 65.4 billion represents 11% of GDP for January to September 2022. This is driven mainly by taxes on income and property (~37.9% of total
revenue and grants) as well as taxes on domestic goods and services (~32% of total revenue).
✓ Total expenditure (incl. arrears) of GH¢ 109.4 billion for the same period represents 18.5% of GDP.
✓ There was an overall budget deficit of GH¢ 44 billion (7.4% of GDP) against a programmed deficit of GH¢ 36.7 billion (6.2% of GDP) for January to September 2022. This is as a result of
shortfalls in revenue and faster execution of expenditures.
Sources: 2023 Budget Statement
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 16
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
Public Debt
Public Debt Trajectory Growth Trends in Public Debt
• The provisional gross value of Ghana’s public debt stock as at end- 75%
77%
Credit Ratings in 2022 74% 76%
61%
56%
44%
36% 38% 37% 40%
28% 28% 32% 30% 32%
Caa2 CC CCC+/C
2018 2019 2020 2021 Sept. 2022
Moody’s Rating Fitch Rating S&P Rating Total Debt to GDP External Debt to GDP Domestic Debt to GDP
Oct. 2022 Sep. 2022 Aug. 2022 NB: Percentages may not add up due to rounding
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 17
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
Monetary Sector
Historical Foreign Exchange Rate Trend
• In October 2022, inflation increased to 40.4%, up from 37.2% in 15.91
September and 33.9% in August 2022. The rise in prices was 13.64
fuelled by rising global crude oil prices and the cedi's depreciation.
As a result, transportation costs rose, putting a strain on the 13.11
consumer basket of food and non-food items.
8.09
6.75
• In order to reduce pressures on aggregate demand, the Bank of
Ghana's Monetary Policy Committee (MPC) increased the 6.02
Monetary Policy Rate (MPR) from 14.5% as at the beginning of the Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
year to 24.5% in October 2022. The 1,000 basis point increase NB: Data collected on 24 November 2022 GHS/USD GHS/GBP GHS/EUR
was intended to tighten liquidity conditions in the banking industry,
resulting in an increase in the weighted average interbank rate to Depreciation Rates (October 2022)
23.98% in October 2022, up from 12.66% in October 2021.
• On the foreign exchange market, the cedi fell by 53.8% against GHS/USD GHS/GBP GHS/EUR
the US Dollar, 45.7% against the Pound Sterling, and 46.9%
against the Euro. The weakening of the local currency’s value was
due to tremendous pressures from both internal and external
forces. These factors include tightening global financing
conditions, the sovereign downgrades and restricted access to Monetary Policy Rate 14.50% 19.00% 24.50%
markets as well as heightened demand pressures for foreign Dec-21
Average Bank Lending
currency amid supply shortages. Rate 20.04% 22.53% 31.40% May-22
Oct-22
Inflation 12.60% 27.60% 40.40%
Source: Ministry of Finance 2023 Budget Statement, Bank of Ghana
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 18
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
46.2%
share of GDP as at
32.1%
share of GDP as at
21.7%
share of GDP as at
2022 H1* 2022 H1 2022 H1
5.4% 1.8% 4.9%
The industry sector showed significant Although the agriculture sector recorded the
The services sector remained the sector with the largest share second highest growth rate of 4.9% in the
of GDP. Although the sector recorded a significant decline of recovery in 2022 H1 compared to its
negative growth rate of 3.1% in 2021 first half of 2022, its growth rate dropped
about 2.6% compared to the first half of 2021, it recorded the significantly in the second quarter of 2022
highest growth rate of 5.4% in the first half of 2022. The H1. The manufacturing subsector
recorded the highest growth rate of to 4.6% from 11.9% in 2021. Forestry and
information and communication sub-sector leads the services logging was the only subsector to record an
sub-sector, recording the highest growth rate of 20.3%. Other 4.8%. The mining and quarrying
subsector recovered after recording a average contraction of about 0.4% over the
key subsectors such as hotels and restaurants, financial services period. The fishing subsector exhibited
and insurance activities and education also experienced contraction of 17.9% in 2021 H1
compared to a growth rate of 0.6% in significant improvement from its negative
significant growth in 2022 H1 compared to 2021 H1. The real growth rate of 0.1% in 2021 H1 to recording
estate subsector, however, contracted by -5% in H1 2022 2022 H1. The recovery was fuelled by
increased oil and mineral production, the highest growth rate of 15.9% in 2022
compared to its 13.3% growth rate in H1 2021 primarily due to H1.
spikes in the cost of building materials. Administrative and predominantly gold.
support service activities also contracted by -11.5% in the same
period.
Growth rate
* H1 – First Half
Source: Ministry of Finance Statement 2023
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 19
04
ESG
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
Notable Global
ESG Trends In September 2022
01 Environmental 02 Social
Addressing Climate Change
❑ Ghana lost US$15.20 billion (2000 – 2019) due
to climate change.
Social Welfare Gains
❑ National Health Insurance claims management
enhanced by the electronic system.
03 Governance Responsible Business
❑ The National Carbon Credit Framework has ❑ The GSE has established a sustainability-
been developed with a carbon registry system ❑ LEAP beneficiaries increased to 1,827,035 themed bonds market with the Ghana Fixed
to support managing carbon credits. individuals with 76% enrolled onto the (NHIS). Income Market (GFIM) rules.
❑ Over 82,371 permanent and casual rural jobs ❑ GSE has launched its ESG reporting guidelines
❑ Minerals Commission launched 65 created under NAELP. for listed entities.
community mining schemes in 8 districts.
❑ 15,025 farmers benefited from land restoration
❑ The NAELP programme achieved the technologies and practices.
following:
➢ 645ha of degraded lands reforested In 2023:
➢ 20 million economic seedlings nursed for the ❑ Rural agricultural investments to be
plantation development programme supported by the Green Finance Initiative
(IGREENFIN).
In 2023:
❑ Forestry Commission to develop 25,000ha of ❑ NHIA enrolment expected to increase to
forest plantations. 20.3m by end December 2023.
❑ NAELP to stabilise 1000ha of degraded lands ❑ LEAP coverage to be expanded to all 2.5m
and nurse 1 million trees. extreme poor individuals by 2024.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 22
05
Tax & Non Tax
Revenue Initiatives
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
INITIATIVES
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 24
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
INITIATIVES
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 25
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
INITIATIVES
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 26
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
INITIATIVES
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 27
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
INITIATIVES
❑ Full implementation of Excise Tax Stamp on Textiles by end of first quarter 2023.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 28
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
INITIATIVES
❑ Full roll-out of the Unified Common Platform for property rate administration
The proposed implementation of the common platform
• Government plans to begin the implementation of the Unified Common Platform for property rate administration in January 2023 will
for property rate in January 2023. help streamline the collection of property rates. This
will assist government to meet its’ medium term non-
❑ Re-introduce road tolls tax revenue target. However, it is worth noting that, for
the unified common platform to work effectively, there
• Government has proposed the reintroduction of road tolls on selected highways in should be an improvement in the current process of
the country. Government intends to adopt technology in the administration of road property registration for ease of identification and
tolls to reduce revenue leakages and inefficiencies. valuation of properties.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 29
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
INITIATIVES
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 30
06
Expenditure Initiatives
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 32
07
Sector Initiatives
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
• The Ghana Accreditation Service Bill will also be finalised for approval and implementation.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 35
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
Transportation
Budget Proposal Our Point of View
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 36
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 37
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
• The Ministry to supply additional cookstoves 137,253 as part of the Improved Charcoal
Cookstove programme.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 38
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
• Government promoted five offshore blocks for direct negotiation including the Offshore
Cape Three Points South, Shallow Water Cape Three Points, South West Saltpond, Goil
Offshore’s DeepWater Cape Three Points Block, and Base Energy’s Expanded Shallow
Water Tano Block.
• The Ministry to complete the appraisal of the Akoma and Eban discoveries.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 39
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
Agriculture
Budget Proposal Our Point of View
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 40
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
Agriculture
Budget Proposal Our Point of View
❑ Promotion of Organic Fertilizer
• As a result of the disruption in inorganic fertilizer supply chains, the Ministry of Food and Ghana largely imports agricultural products such as rice,
Agriculture is initiating a capacity building programme in Integrated Soil Fertility Management wheat, soybean meal, and poultry, which the country has
(ISFM) for farmers. capacity to produce locally. With Government indicating its
• Further to this, an extensive awareness creation campaign on the use of local organic fertilisers intention to withdraw foreign exchange support for those
will be embarked on. commodities, it is important to accelerate the scaling up of
local production. It is also essential that, supply chain
❑ Regulation of Grain Exports infrastructure is enhanced.
• The Ministry of Food and Agriculture together with the Ministry of Trade and Industry, in their
quest to regulate the export of major staples, especially grain, in other to avoid shortages in the
local markets, will require of grain exporters to acquire Export Permits.
❑ Coffee Production
• To facilitate the free distribution of coffee seedlings and facilitate the growth of young plants and
improve the productivity of mature coffee plants, an amount of GHC1.82 million has been
earmarked to support coffee activities in 2022/2023.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 41
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
Agriculture
Budget Proposal Our Point of View
❑ Export Promotion
• Selected priority products such as cocoa derivatives, cassava value chain products, fruits and
vegetables will be developed for enhanced market access.
Access to financing is a challenge for the agriculture
• The Ghana Exports Promotion Authority (GEPA) will continue with its supply base expansion sector due to the sector’s perceived high risk status.
initiative for products such as coconut, pineapples, cashew and shea derivatives. The implementation of the financing and risk mitigation
• GEPA will leverage on the opportunities the African Continental Free Trade Area (AfCFTA) initiatives will help to de-risk the sector for financing.
provides to pursue aggressive market entry programmes in selected African markets.
❑ Development Bank Ghana and Ghana Incentive-based Risk Sharing for Agricultural
Lending
• The Board of Development Bank of Ghana (DBG) has approved the establishment of a GH¢ 500
million special credit programme – the DBG Emergency Economic Programme (DEEP) to
support businesses in the agribusiness value chain at preferential rates over the next five years
to build economic resilience and lay the foundation for accelerated growth. The priority sectors
include poultry, rice and cereals.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 42
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
Health
Budget Proposal Our Point of View
❑ Human Resource for Health Development Programme
• The West African College of Physicians and Surgeons (WACPS) will commence post
graduate training at the Tamale Teaching Hospital in line with the government’s quest to
improve quality of care. To drive good quality health care delivery, it is
imperative that the Government builds adequate human
• The government through the Ministry of Health will finalize the Memorandum of resource capacity to achieve this. Consequently, it is
understanding between itself and the United Kingdom which seeks to regularize the important for Government to continue to expand access
exportation of health professionals. to quality education and in-service training for
healthcare professionals.
❑ Health Sector Regulation Programme
To support the government’s effort to improve the quality of health care in the country, the
government will implement the following strategies:
• The Ghana Psychology Council and Health Facilities Regulatory Agency will complete and
implement the Legislative Instruments for their various Acts (i.e. Part V of the Health
Professions Regulatory Bodies Act, 2013 (Act 857) and the Health Facility Regulatory Agency
for Health Institutions and Facilities Act, 2011 (Act 829)).
• In the area of pharmacy practice regulation, the National Electronic Pharmacy Platform will be
rolled out in 2023 to improve access to medicines and quality pharmaceutical care.
• The traditional Medicine Practice Council will in 2023, launch and implement the advertisement
guidelines on traditional medicine services.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 43
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
Health
Budget Proposal Our Point of View
❑ Health Service Delivery Programme
• The Ministry will implement the Health Financing Strategy to support financing of the universal
Health Coverage Roadmap. The new reforms in the health sector will enhance
• The Government will continue with the establishment of the National Vaccine Institute and the the quality of health workers and health
Ghana Centre for Disease Control, with a clear cut goal of introducing malaria vaccines in 2023. infrastructure, translating into the improvement of
• Komfo Anokye Teaching Hospital will expand its Nuclear and Radiotherapy Centre, retool the good quality health care delivery in the country. It also
Accident and Emergency Centre, complete the construction of a Fertility Centre as well as set looks at regulating the export of health professionals
up a CathLab and a Cardiothoracic Centre. to other countries, which could be a source of foreign
• Similarly, the Ghana Health Service will implement the Network of Practice concept to ensure
exchange for the country.
that quality health services are provided at the lower levels to promote primary health care.
The government intends to access concessional funding to undertake the following projects,
subject to the conclusion of feasibility studies:
• Phase II of the Accra Regional Hospital Project
• Retooling of Selected Public Health Facilities Project
• Rehabilitation of the Cape Coast Teaching Hospital and
• Accident and Emergency Centre Project
❑ Covid – 19 Update
In 2023, the government will not relent in its efforts to place vaccination as the major Covid-19
prevention strategy while implementing the proven interventions adopted since the outbreak of
the pandemic i.e. surveillance, risk communication, containment and case management as well as
testing and laboratory services.
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 44
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 45
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 46
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 47
08
Outlook
GLOBAL DEVELOPMENTS THE ECONOMY ESG TAX & NON-TAX REVENUE INITIATIVES EXPENDITURE INITIATIVES SECTOR INITIATIVES OUTLOOK
2.8% Non-Oil
GDP growth
7.7% End-
December
3.3
months
Primary
Surplus
rate Inflation
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG Budget
International Limited, a private English company limited by guarantee. All rights reserved. Printed in Ghana. Highlights 50
Contact Us:
Anthony Sarpong Andrew Akoto
Senior Partner, Partner, Head of
KPMG in Ghana Markets
Email: asarpong@kpmg.com Email: aakoto@kpmg.com
Mobile: +233 204306718 Mobile: +233 208174629
kpmg.com/socialmedia
© 2022 KPMG a partnership established under Ghanaian law and a member firm of the KPMG global organization of independent member firms affiliated with
KPMG International Limited, a private English company limited by guarantee. All rights reserved.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we
endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will
continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the
particular situation.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.