The report that the government anchored its 2023 Budget Statement and Economic Policy on a seven-point agenda in order to restore macroeconomic stability and accelerate economic transformation is one of the leading stories in the Ghanaian press on Friday.
The Graphic reports that the government has anchored its 2023 Budget Statement and Economic Policy on a seven-point agenda it believes will restore macroeconomic stability and accelerate economic transformation.
The seven-point agenda, which are also articulated in the country’s post-COVID-19 Programme for Economic Growth document (PC-PEG) are to aggressively mobilise domestic revenue, streamline and rationalise expenditures, boost local productive capacity, promote and diversify exports, protect the poor and vulnerable, expand digital and climate-responsive physical infrastructure and implement structural and public sector reforms.
In a presentation to Parliament last Thursday, Finance Minister Ken Ofori-Atta said the 2023 budget reflects government’s resolve to reset the economy.
Some actions, initiatives and interventions to be taken by the government under the seven macroeconomic restoration measures include increment in the value added tax (VAT) rate from the current 17.5 per cent to 20 per cent; 0.5 per cent downward review of the E-Levy charge from 1.5 per cent to one per cent.
Mr Ofori-Atta said the government’s goal for 2023 is to significantly enhance revenues, cut down the cost of running government, significantly expand local production, invest more to protect the poor and vulnerable, continue expanding access to good roads, education and healthcare for every Ghanaian everywhere in Ghana and the diaspora.
“To achieve these, there are three critical imperatives: successfully negotiating a strong IMF programme; coordinating an equitable debt operation programme and attracting significant green investments.”
“This will enable us to generate substantial revenue, create the needed fiscal space for the provision of essential public services and facilitate the implementation of the PC-PEG programme to revitalise and transform the economy,” the Minister said.
Under the seven-point agenda for economic restoration, key government programmes will be reviewed to reflect relevance, promote efficiency and ensure value for money and implement the government directives on expenditure measures.
Among other measures, the government will impose a debt limit on non-concessional financing.
The newspaper says that the average rates on loans given to individuals and businesses by banks in the country stand at 31.4 per cent at end-October 2022.
This is on the account of increments in the Bank of Ghana’s policy rate which subsequently leads to an increase in the Ghana Reference Rate (GRR) and risk assessment charges on borrowers.
The rise in the average lending rate marks a 11 per cent (1,100bps) year-on-year (YoY) increment in interest rates when compared to the 20.34 per cent average lending rate at end-October 2021.
The 11,000bps increment in the average lending rate is primarily driven by increments in the benchmark monetary policy rates set by the Bank of Ghana (BoG) and subsequently the Ghana Reference Rate (GRR).
Bank of Ghana’s monetary policy rate currently stands at 27 per cent following a 1,000 bps increment in the prime rate by the apex bank.
On the back of the increment in the prime rate, the GRR also on a YoY basis grew from 13.47 per cent at end-October 2021 to 27.44 per cent at end-October 2022.
The rise in average lending rate means high cost of borrowing by individuals and particularly businesses which translates into high cost of doing business.
The high average lending rate also makes it difficult for businesses and individuals to pay back loans taken from banks thereby potentially increasing gross non-performing loan ratios of banks in the country.
The Ghanaian Times reports that one of the most ferocious games in World Cup history will be waged at the Al Janoub Stadium in Al-Wakrah today when the bourgeoning Black Stars of Ghana cross swords with old foes Uruguay in a Group H cracker that has a lot at stake. It is one game – probably the only game everybody seems to be talking about here in Doha today, conscious of the heart-thumping story between them.
Twelve years ago at the 2010 World Cup in South Africa, Uruguay did the unthinkable to Ghana at the quarter-final stage as they eliminated the Stars in the most excruciating manner after Luis Suarez scooped out a last-minute goal-bound goal from his net.
A penalty – instead of a goal – was awarded for that transgression, but forward Asamoah Gyan would go ahead to blow off the God-sent golden opportunity.
An ensuing penalty shoot-out after extra-time did not favour Ghana as the Stars were denied the glory of becoming the first African team to make it to the last-four berth of the World Cup.
Today, Ghanaians have always look back at that game with lots of pain and anguish.
That agonising moment is still emblazoned on the minds of most Ghanaians.
The game’s experts have always contended the goal-bound effort from Dominic Adiyah would have stood had the Video Assistant Referee (VAR) technology been introduced at the time. Maybe!
Somehow, fate has brought the two combatants to the ‘sword’ again and the ‘demon’ who broke the nation’s heart – Suarez, is still a pivotal part of the Uruguay team – and would surely attract the cynosure of all eyes this afternoon. He rolled off from the bench in their second group game against Portugal; but who knows, he may be on the starting list this time around.
Whilst the Uruguayans are talking tough ahead of the game, their Ghanaian counterparts are keeping a low profile, and say they are focusing on victory.
Indeed, sweat merchant of the team, Otto Addo, has brushed aside thoughts of revenge today.
“That painful memory will not provide extra incentive for the Black Stars; we are just focused on victory.”
The newspaper says that the Agricultural Development Bank (ADB) Plc loan support to agricultural sector continues to record steady growth.
As of September 2020, ADB Plc loan to the agriculture sector had increased to GH¢993.50 million from GH¢453.20 million in December 2016.
A statement issued by the ADB Plc to congratulate farmers, fishers on the 38th Farmers’ Day celebration, said “We believe in agribusiness for wealth creation and the Agricultural Development Bank Plc remains committed to the agribusiness sector of the economy.”
The amount excluded the huge volumes of non-funded facilities such as letters of credits and guarantees granted for the purchase of agricultural inputs, machinery, equipment and raw materials.
“The over 119 per cent increase has come on the back of strategy to refocus the Bank onto its original mandate to provide financial intermediation to the agricultural sector with the aim of using the agriculture sector as a means of wealth and job creation for the ordinary Ghanaian,” the statement said.
The statement said the Bank had been an active partner for the implementation of the novel One District One Factory (1D1F) and so far about 20 companies had received financial support of over GH¢100 million.
They include the Ekumfi Fruits and Juices Limited, Kumasi Jute Factory, Weedi Africa Tomato Processing Factory and Kaad Integrated Limited.
The statement said the bank had over the years imported outboard motors for sale to fishers at a cost either under lease financing or through direct sales.
The bank in supporting the Fisheries sector imported 1,300 outboard motors made up of 1200 (40HP) and 100 (15HP) Yamaha products at a cost of GH¢19.8million for the Ministry of Fisheries and Aquaculture Development and the Coastal Development Authority.
The bank absorbed all incidental and related costs amounting to about GH¢7.0 million which will have been a cost to our fishers.
To further contribute to government’s effort at reducing the importation of poultry into the country, the statement said the bank this year announced the implementation of the Broiler Revitalisation Programme with poultry farmers in the Bono Region being the first beneficiaries.
GIK/APA