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Government projects GH¢137.5 billion expenditure, Revenue GH¢100.5 billion for 2022

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Government is projecting a total Expenditure, including the clearance of Arrears, of GH¢137.5 billion, equivalent to 27.

4 per cent of Gross Domestic Product (GDP) for the 2022 fiscal year.

The estimate for 2022 represents a growth of 23.2 per cent over the projected outturn of GH¢111.6 billion, equivalent to 25.3 per cent of GDP for 2021.

Also, the government pegs projected revenues at GH¢100.5 billion in 2022.

Mr Ken Ofori-Atta, Minister of Finance, made this known when he presented the Budget Statement and Economic policy of Government for the 2022 fiscal year to Parliament on Wednesday.

The theme for the 2022 financial plan is: “Building a Sustainable Entrepreneurial Nation: Fiscal Consolidation and Job Creation.”

The key drivers of expenditure growth include Capital Expenditure, funding of key Government flagship programmes, wages and interest payments.

The Minister said based on the estimates for total revenue and grants and total expenditure, the 2022 fiscal operations would result in an overall fiscal deficit of GH¢37.0 billion, equivalent to 7.4 per cent of GDP.

These include the financial sector and energy sector IPPs payments and represented a nominal year-on-year reduction of about 30.7 per cent over the projected outturn of 12.1 per cent of GDP in 2021.

Mr Ofori-Atta, who described the financial plan as the “Agyenkwa” budget, said the corresponding primary surplus of GH¢435 million, equivalent to 0.1 per cent of GDP, was also projected for the year.

“The signalling is clear. We are going to judiciously work our way out of our debt situation,” he added.

He said the total foreign financing of the deficit as well as exceptional financing, namely the IMF’s Special Drawing Rights (SDRs) would amount to GH¢9.1 billion, equivalent to 1.8 per cent of GDP and will include a planned international financing programme, which would not exceed USD One billion, to raise up to US$750 million for liability management and budget support, particularly, capital expenditure.

However, financing of the deficit from domestic sources, including net issuances from debt, the minister stated, would amount to GH¢27.9 billion, equivalent to 5.6 per cent of GDP.

The additional exceptional financing from the utilization of the newly allocated SDRs by the IMF will augment and reduce domestic borrowing needs.

The Finance Minister said as a country “we still rely heavily on debt financing to meet a significant portion of our expenditures compared to our peers.”

He noted that, on the expenditure side, for instance, interest payments and compensation payments alone amounted to GH¢48.7 billion, which was 103.3 per cent of total revenue and grants for January to September 2021.

“In fact, these two expenditure items absorb all the revenue collected for the period and this trend must be reversed.”

Mr Ofori-Atta said a key focus of the budget was to enhance debt and fiscal sustainability as the government implemented its post-Covid 19 economic revitalisation and transformation programme “to save more lives from the pandemic and better the lives of Ghanaians.”

“It is for this reason that Government is proposing for the consideration and approval of Parliament the revenue-enhancing and expenditure rationalization measures in this budget,” he added.

The approval and implementation of those measures, the Minister noted, would lead to significant fiscal adjustment from a projected fiscal deficit of 12.1 per cent of GDP in 2021 to 7.4 per cent in 2022.

He said not only was the government significantly bringing the fiscal deficit down but was posting a primary surplus of 0.1 per cent of GDP in 2022 from a negative primary balance of 4.7 per cent in 2021.

“These measures will no doubt slow down debt accumulation and will put the debt to GDP ratio on a declining path… We expect this new paradigm shift to create the needed fiscal space to continue to support broad-based inclusive growth,” he said.

Source: GNA

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National: 2023 Budget: TUC to reject government’s salary projection of ₵44.9m

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Deputy-General-Secretary-of-the-Trades-Union-Congress-TUC-Joshua-Ansah

After several attempts to reach an agreement with government over an increment in their base pay, the Trades Union Congress (TUC) is expected to meet government on Wednesday to finalise a deal.

But before that meeting gets underway, the Trades Union Congress is warning that it will not accept government’s projections in the 2023 Budget.

The Finance Minister, Ken Ofori-Atta, reading the 2023 Budget in Parliament projected compensation of employees at GH¢44,990 million (5.6% of GDP).

Earlier, government also proposed a 12% salary increment during the last negotiation with Organised Labour but it was turned down.

 

Speaking on JoyNews’ PM Express on Tuesday, Deputy General Secretary of TUC, Joshua Ansah stated that they would not agree to the projected figure.

According to Mr Ansah, government must expect a fight if they turn up at the meeting with the same proposal.

JoyNews/AdomNews · TUC to reject government’s salary projection in 2023 Budget
“There is no way Organised Labour is also going to accept what has been put in the budget. Well, if the government has made up its mind that it is the way it thinks that he can actually force down the throat of workers, then we are in for a big fight, because there is no way government can pay anything below what we are expecting,” he said.

He noted that Organised Labour will not compromise on their demand for 60% increment in their base pay.

Meanwhile, the President of the Ghana Medical Association, Dr. Justice Yankson says government has created a problem by not reaching an agreement with the labour unions earlier.

JoyNews/AdomNews · Dr Yankson on organised labour and government’s negotiations
He believes the current mess could have been prevented.

“These are some of the problems that sometimes we create for ourselves. We had a whole period in which we could have sorted these things, we waited to the last end. Now we can see that we are on a collition course, it is clear,” he said.

Source: Myjoyonline

 

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Politics: Wenchi High Court throws out petition against NPP MP’s 2020 election victory

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A Wenchi High Court has thrown out a petition against New Patriotic Party (NPP) legislator in the Techiman South 2020 election.

The petitioner was seeking the nullification of the poll which saw the NPP candidate, Martin Agyei Mensah Korsah, emerge victorious.

But at the hearing Wednesday, the court explained that the NDC 2020 Parliamentary candidate, Christopher Bayere, who was pursuing the matter, failed to prove the burden of petitioning.

The court was attended by some leaders of the NDC including General Secretary, Johnson Asiedu Nketia.

Wenchi High Court throws out petition against NPP MP’s 2020 election victory
He was sighted leaving the court premises a few minutes before the judgement.

The NDC Parliamentary candidate had contested the EC’s verdict which gave the NPP’s candidate victory with 49,682 votes representing 50.2 percent of the total valid votes cast, whilst the NDC’s candidate had 49,205 votes representing 49.8 percent of the total valid votes cast.

The NDC Parliamentary candidate insisted that the figures were not a true reflection of the election.

According to him, per the pink sheets of the NDC agents at each of the 267 polling stations, he garnered 50,306 votes in the Parliamentary election whilst the 1st Respondent polled 50,013 votes.

Wenchi High Court throws out petition against NPP MP’s 2020 election victory
Electoral Commission fined in 2021

In August 2021, the Electoral Commission of Ghana was fined GH¢4,000 by the court after the Court refused to grant the EC’s request for a stay of proceedings in the dispute on July 30, 2021.

Wenchi High Court throws out petition against NPP MP’s 2020 election victory
The EC’s application for a stay of proceedings was to enable it to file a motion to challenge the ruling of the Court at its previous sitting, when it granted the petitioner a motion to amend the title of the writ.

TCounsel for the EC, Emmanuel Addae said the stay of proceedings was to enable him to file supplementary statements in support of the application filed by the National Democratic Congress (NDC) candidate, Mr Christopher Beyere Baasongti.

However, reacting to the EC’s stay of proceedings, the Counsel for the petitioner, Justin Teriwajah argued that the motion was frivolous and unnecessarily geared towards delaying the adjudication of the case.

Source: Myjoyonline

 

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Football: Asamoah Gyan’s run, Bagbin’s dance and Black Stars fans’ clean-up as fans celebrate S. Korea win in style

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It was the much-needed win for Ghanaians who were largely sitting on tenterhooks for the final quarter of the game.

And from the reactions, after the South Koreans netted a quickfire double between the 58th and 61st minutes, something had to definitely happen.

Kudus rose to the occasion, found himself at the end of a Gideon Mensah cross and curled the ball past the goalkeeper to restore Ghana’s lead and eventually sealed the game for Black Stars.

Asamoah Gyan’s run, Bagbin’s dance and Black Stars fans’ clean-up as fans celebrate S. Korea win in style
The 68th-minute winner triggered a thunderous celebration across the country and on social media.

Despite late attempts from the Koreans, the game ended 3-2 with Ghana earning a vital win in Group H.

Asamoah Gyan’s run, Bagbin’s dance and Black Stars fans’ clean-up as fans celebrate S. Korea win in style
Alban Bagbin

The jubilation started right from Ghana’s legislative arm where the Speaker, Alban Bagbin was caught on camera dancing to one of the goals on the day from his office.

The ecstatic Speaker punched the air while clad in his Black Star jersey in the company of other officials of the House.

Asamoah Gyan runs

Former Black Stars captain, Asamoah Gyan was on punditry duty at SuperSports TV.

However, the ethics of being on a live set could not suppress his excitement when the deciding goal was scored.

Filled with elation, the former skipper run out of the set in jubilation shouting atop his voice.

His iconic goal celebration was his response when asked about his reaction to some moments of the game.

Fans in clean-up mode

Now, supporters of Japan’s national team have been earning praise in Qatar for their zeal toward cleanliness after each game.

This win seems to have presented Ghanaian fans with the opportunity to emulate this off-pitch tradition.

While many celebrated the win at full-time, other fans were seen moving boxes around to collect the waste left by their colleagues.

South Korea’s Son not in selfie mood

Another interesting sight came from an official from the Ghana dressing room posing for a selfie.

The subject Son Heung-min was almost in tears after his team lost at full-time.

Otto Addo’s side will now face Uruguay in their last game looking to secure qualification to the next stage of the competition.

Source: Myjoyonline

 

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