By Morkporkpor Anku, GNA
Accra, Nov. 13, GNA – The 2027 Budget has allocated GHS389.2 billion for total expenditure, representing 21.6 per cent of Gross Domestic Product (GDP), with GHS100.4 billion earmarked for capital expenditure.
The expenditure allocation includes GHS104.1 billion for compensation of employees, comprising GHS92.6 billion for wages and salaries and GHS11.5 billion for social contributions, including pensions, gratuities and social security contributions.
The Budget, presented by Dr Cassiel Ato Forson, Minister for Finance, is themed: “New Economy, New Ghana, Jobs and Prosperity.”
An amount of GHS61 billion has been allocated for interest payments, comprising GHS51.5 billion for domestic obligations and GHS9.5 billion for external obligations.
The Budget also provides GHS13.7 billion for goods and services, while transfers to statutory and earmarked funds are estimated at GHS76.5 billion.
It further allocates GHS2.3 billion for social benefits and GHS17.2 billion for other expenditure, including energy sector payment shortfalls and transfers to GoldBod.
The GHS100.4 billion capital expenditure allocation represents 5.6 per cent of GDP and comprises GHS88.4 billion for domestically financed projects and GHS12 billion for externally financed projects.
The Government has also earmarked GHS13.9 billion for arrears clearance, including GHS4.3 billion to settle legacy arrears owed to independent power producers.
The overall fiscal deficit on a cash basis is projected at GHS65.8 billion, equivalent to 3.6 per cent of GDP, to be financed through domestic and external sources.
Net domestic financing is projected at GHS84.9 billion, while external financing is expected to record a net repayment of GHS17.7 billion.
On a commitment basis, the overall budget deficit is projected at GHS51.9 billion, representing 2.9 per cent of GDP.
The primary balance on a commitment basis is expected to record a surplus of GHS9 billion, equivalent to 0.5 per cent of GDP.
On revenue mobilisation, Dr Forson said the 2027 Budget would introduce no new taxes, with the Government focusing instead on improving revenue collection, closing leakages and enhancing the efficiency of the tax system.
He said the Government would review and modernise the Income Tax Act, Revenue Administration Act, stamp duty administration and Communications Service Tax framework, as well as customs tariff concessions on selected raw materials, machinery and industrial inputs.
Dr Forson said the Government would also review Ghana’s Double Taxation Agreements in line with the United Nations Framework Convention on International Tax Cooperation to address tax evasion and treaty abuse while protecting legitimate investments.
Measures would also be taken to strengthen tax dispute resolution and introduce regulations to ensure the consistent application of the reformed tax laws, he said.
Additionally, imported solar panels and batteries would be exempted from import duties and Value Added Tax (VAT) to reduce the cost of adopting clean energy among households and businesses.
The exemptions would form part of incentives under the 24-Hour Economy Programme, with the Government encouraging households, farmers, businesses and electric vehicle operators to invest in solar energy systems.
GNA
Edited by Kenneth Sackey
Reporter: Morkporkpor Anku
[email protected]