.

Updates of 2012 budget statement being read in parliament

Share this post

A fiscal decentralization unit has been set up at the Ministry of Finance. Deficit dropped to 2% GDP.

Government will continue the implementation of the new pay structure. Government will link public sector pay with productivity.

Resourcing of Electoral Commission to ensure free and fair elections.

US$112m has been transferred into the Consolidated Fund while US$54. 8m transferred into the Stabilisation Fund.

2,980,720 barrels of oil was lifted at the end of October. Proceeds from the first three liftings amounted to US$337. 3m and that of the fourth will be recorded at the end of November.

Single digit inflation target of 9 per cent by close of the year will be achieved

Government to expand tax base and improve efficiency

Tax proposals: taxation of professionals and informal sector

Tax amnesty to individuals who have evaded taxes to start in January 2012 to September 2012

The Ghana Stock Exchange is to enjoy five more years of tax holidays as corporate tax rate in the hospitality sector sees a reduction. 

Taxation measures for 2012: Taxation of professional and informal sectors especially the self-employed will take effect next year. Government is targetting 8 per cent of that sector from the present 4 per cent. 

Government will hedge interest rates to mitigate risks. 

Government will raise the VAT registration threshold from an annual
turnover of 90,000 to 120,000. Businesses with a turnover of less than GH¢120,000.00 over a twelve month period will pay a presumptive tax of 6 per cent of turnover. However, increase in VAT treshhold does not constitute an increase in VAT rates.

Beginning in the fiscal year 2012, the following changes to the
taxation of mining activities will apply:
a)the corporate tax rate for mining companies will be increased
from the current 25 per cent to 35 per cent;
b)A windfall profit tax of 10 per cent will be collected from all mining companies; and
c)A uniform regime for capital allowance of 20 per cent for five years for mining, as is the case in the oil and gas sector is also established.

Natural resource taxation

Mining is contributing little to the development of the country. Therefore, the following changes will apply for taxation in the mining industry 
A profit tax of 10 per cent will be collected from all mining companies

Environmental tax of 20 per cent of plastic management was introduced.
Following discussions with stakeholders government will reduce the rate to 15 per cent with exemption to pharmaceutical industries

Tax holidays to the hospitality industries has also been reduced from 22 to 20 per cent

Government has revised the income tax thresholds and brackets as
follows:
Proposed Income Tax Brackets for 2012 Income

First 1,440 Free
Next 720 5%
Next 1,008 10%
Next 25,632 17.5%
Exceeding 28,800 25%

Government is to set up a committee to look into the expansion of the Kotoka International Airport as well as look for funding as the number of airlines increase. At the moment about 33 airlines operate from the KIA.

Awoshie Pokuase road project has been awarded and there is a progress in current road constructions

Education

15.3 million was released as payment of capitation grant for the 2^nd and 3^rd year of 2010/2011 academic year

1258350 uniforms were distributed to pupils in deprived communities in the country

1226 school projects on various stages of completion

4,000 new boreholes to be constructed nationwide in fulfillment of its promise in 2010 of providing 20,000 boreholes over the next 5 years; 

Hydrocol Ghana Limited and Befesa Agua of Spain will start the installation of the 60,000m3 sea water desalination plant at Teshie to improve water supply to the area.

Government will source funding for the construction and delivery of safe, decent and low income affordable housing units.

The Takoradi Port Expansion Project and the Multi-Modal Transport Project that links the Tema Port by rail to the Volta Lake will be undertaken under the CDB Facility. Coastal fishing harbours and landing stages will be provided under the CDB.

Four new Ghanaian airlines have been licensed to commence operations on both the domestic and regional routes to improve connectivity on the continent.

657,132,393 million cedis will be allocated to the energy commission and 283.2million Ghana cedis to the Water and Housing Ministry

99.5 million cedis to be allocated to the Ministry of Roads and Highways for implementation of programmes for 2012

Government will continue to collaborate with private sector on the Public Private Partnership (PPP) arrangement for the financing, construction and management of road infrastructure. Projects to be considered include: Motorway Overpass at Teshie Link Junction, concrete overlay of Accra-Tema Motorway and expansion, dualization of Accra-Kumasi and the Accra-Cape Coast- Takoradi Roads. 

Government has secured donor funding amounting to US$1. 5 billion for the construction of the Eastern Corridor Roads, mnamely the Tema roundabout– Kpong – Atimpoku – Asikuma junction, Asikuma Junction – Hohoe – Jasikan – Poase Cement, Poase Cement – Dodo – Pepesu – Nkwanta, Nkwanta – Oti Damanko, Tuwuo – Gushiegu – Nakpanduri, Nakpanduri – Bawku – Kulunguru (100 km); and Atebubu – Kwame Danso

Government has made a budgetary provision of GH¢100. 0 million to begin the construction and development of the project in 2012. 

The Ministry of Roads and Highways, has been allocated GH¢907,794,236. 00 for the implementation of their programmes and activities in 2012. In addition, GH¢250,000,000 will be spent on the “gang of six” projects. 

The Ministry of Transport will receive and amount of GH¢99,463,777. 00 for the implementation of their programmes and activities in 2012. 

Government will provide 4,000 new boreholes countrywide in fulfillment of its promise of providing 20,000 boreholes over the next 5 years. 

Government, in addition, will provide 670 new boreholes in collaboration with development partners, rehabilitate 400 existing boreholes, construct 20 new hand dug wells, 4 small community pipe systems and 18 small town pipe systems, as well as rehabilitate 13 existing small town pipe systems. 

Government will continue with the Esakyire, Konongo-Kumawu-Kwahu Ridge Water project and Kumasi water expansion project. It will also start the rehabilitation/construction of water treatment plants, reservoirs and pipelines at Nsawam, Sunyani, Damango and Kpong. 

For the implementation of these programmes and activities, the Water Resources, Works and Housing Ministry has been allocated an amount of GH¢283,176,014. 00

Government will provide an amount of GH¢25.37m, GH¢28.80m, GH¢28.97m and GH¢54.92m as intervention packages for capitation grant, free school uniforms, free exercise books and subsidies to basic and senior high schools respectively.

The sector will commence the construction of infrastructure facilities and installation of equipment in the University of Energy and Natural Resources in Sunyani and The University of Health and Allied Sciences in Ho with a campus at Hohoe.

Government with bridge gap in access to healthcare and nutrition services to ensure sustainable financing arrangements that protect the poor.

Strengthen governance and improve efficiency and effectiveness of the health system

Improve access to quality maternal, neonatal, child and adolescent services

Intensify prevention and control of communicable and noncommunicable
diseases

Strengthen institutional care including mental health service
delivery

POVERTY REDUCTION

Government has allocated an amount of GH¢3,433.5 million, representing 23.7 per cent of total Government Expenditure, to support the provision of basic education, primary health care, poverty-focused agriculture, rural water, feeder roads and rural electrification

Government has allocated GH¢1,088.69 million to fund a number of Priority Intervention Programmes

Government is undertaking a biometric registration and verification of all pensioners and active employees on government payroll. It is estimated that on the average, about 30,000 employees would be eliminated from the National pension’s payroll at the end of this exercise. This would translate to a significant savings of over GH¢3 million per month on the pension’s payroll

Share this post

• < Prev
• Next >