Finance Minister, Ken Ofori-Atta, has presented the 2022 Budget Statement and Economic Policy to Parliament today, Wednesday, November 17, 2021, which his Ministry has hinted will be heavy on job creation and entrepreneurship.
Analysts say Mr Ofori-Atta will look to allay investor concerns about Ghana’s debt sustainability and sluggish economic growth.
Close watchers of Ghana’s economy say both foreign and local investors are concerned about the country’s ability to service dangerously high loans as the average extra premium sought on dollar securities sold by the government now close to distressed levels.
The general government interest expense is projected by Fitch Ratings to increase to almost 47% of revenue next year, well above the median of 11% for nations with a similar investment grade.
Mr Ofori-Atta will also introduce measures to shore up dwindling revenue mobilisation without introducing what some call ‘nuisance taxes’, according to sources close to the Finance Ministry.
One of the two Deputy Finance Ministers, John Kumah, has said the upcoming budget statement will tap into progressive measures to raise revenue.
“Obviously, if people are expecting the government to spend on their needs, they should be expecting the government to raise revenue for that expenditure, so obviously there will be some progressive measures to ensure that, that revenue is raised”, he said.
Watch the Minister's 2022 budget presentation via the live feed below.