2020 BUDGET STATEMENT AND ECONOMIC POLICY

The finance minister stated, the first budget of President Akufo-Addo he presented to Parliament showed the economy was in a very bad shape, suffocating under a mixed weight of debts, arrears, very high cost of living, high youth unemployment and the worst growth rate since 1994.

• “Growth in Agriculture was declining, industry growth was in the negative, the interest rate was high, the banking system was comatose, unemployment was rising and businesses and households were working mainly to pay off their utility bills”.

“There were cuts to a number of arrears of spending most notably were cut to research advances for lecturers and nursing and teacher training allowances; yet, the government then was awarding billions of Cedis worth of contracts without knowing about how to pay for them. It was a case of living for today and leaving tomorrow for itself,”


Finance Minister, Hon. Ken Ofori Atta in the 2020 budget statement and economic policy indicated the country in the 2019 year, chalked a very significant financial success.

According to him, despite the challenges which subdued the economy, the country has come alive again due to the competent management of the economy under the leadership of President Nana Addo Dankwa Akufo-Addo.

Addressing Parliament on the budget statement and economic policy, Hon. Ken Ofori-Atta recounted that 

  • We have won some painful but necessary battles for God and country;

  • We have quietly but incontestably achieved significant structural changes for the economy;

  • We  have  stabilized  greatly  the  macro-economic  turbulence  that  was  all  too regular a feature in the management of the national economy;

  • We have delivered on our flagship programmes;

  • Mr Speaker, the gains made so far are significant.   

THE FINANCE MINISTER REITERATED.“THE POOR STATE OF THE PUBLIC FINANCES, WEAK POLICY IMPLEMENTATION AND LACK OF POLICY CREDIBILITY, CLARITY AND CONSISTENCY RESULTED IN GHANA REQUESTING IMF BAILOUT IN AUGUST 2014. THE ECONOMIC MODULE BEING PRACTICED AT THAT TIME WAS A SIMPLE AND EXAMINED FORMULA OF TAX AND SPEND WITHOUT A FOCUS ON PRODUCTION.”

The finance minister stated, the first budget of President Akufo-Addo he presented to Parliament showed the economy was in a very bad shape, suffocating under a mixed weight of debts, arrears, very high cost of living, high youth unemployment and the worst growth rate since 1994.


"Growth in agriculture was declining;Industry growth was in the negative; Interest rates were high;The banking system was weak; Unemployment was rising; and Businesses and households were working mainly to pay off their utility bills," the finance minister said.


Hon. Ken Ofori-Atta, stated that the  previous government resorted to some draconian fiscal measures; notably the increase in the tax burden on many items and activities, including condoms, cutlasses as well as ‘kayayie’.

Read also: FINANCE MINISTER TO PRESENT 2020 ANNUAL BUDGET TO PARLIAMENT TODAY


Find attached speech by Finance Minister, Hon. Ken Ofori-Atta to Parliament on the budget and Financial Statement


Right Honourable Speaker, Honourable Members of Parliament, on the authority of His Excellency the President Nana Addo Dankwa Akufo-Addo, I beg to move that this august House approves the Financial Policy of the Government of Ghana for the year ending 31st December, 2020.


Mr. Speaker, on the authority of His Excellency the President, and in keeping with the requirement of Article 179 of the 1992 Constitution of the Republic of Ghana, and Section 21(3) of the PFM Act 2016 (ACT 921), may I respectfully present the Budget  Statement  and  Economic  Policies  of  Government  for  2020  to  this Honourable House.

I also submit before this august House, the 2019 Annual Report on the Petroleum Funds, in accordance with Section 48 of the Petroleum Revenue Management Act, 2011 (Act 815), as amended, and a Report on the African Union 0.2 percent Import Levy.


Mr. Speaker, in substance, 2019 has been a very good year for Ghana. This is the year that one can confidently say that God’s blessing of the hard work is beginning to manifest, putting us on a positive trajectory for a proper lift. I say so because:

  • We have won some painful but necessary battles for God and country;

  • We have quietly but incontestably achieved significant structural changes for the economy;

  • We  have  stabilized  greatly  the  macro-economic  turbulence  that  was  all  too regular a feature in the management of the national economy;

  • We have delivered on our flagship programmes;

  • Mr Speaker, the gains made so far are significant.   

It is proper to put this budget into perspective to understand how far we have come. On Thursday, 2nd March 2017, I had the honour and privilege to present the first budget of President Akufo-Addo to this House. At that time, as you may recall, the economy  was  in  a  very  bad  shape,  suffocating  under  a  mixed  weight  of  debts, arrears, very high cost of living, high youth unemployment and the worst growth rate since 1994. Moreover:   


  • Growth in agriculture was declining;Industry growth was in the negative;

  • Interest rates were high;The banking system was weak;

  • Unemployment was rising; and

  • Businesses and households were working mainly to pay off their utility bills.


Mr. Speaker, this poor state of public finances,  weak policy implementation and lack  of  policy  credibility  resulted  in  Ghana  requesting  an  IMF  bailout  in  August 2014.


The economic model being practiced at the time was a simple, unexamined formula  of  tax,  borrow  and  spend  without  a  focus  on  production. 


The  previous government resorted to some draconian fiscal measures; notably the increase in the tax burden on many items and activities, including condoms, cutlasses as well as ‘kayayie’.


Find attached the budget and Financial Statement read to Parliament by the Finance Minister, Hon. Ken Ofori-Atta. 2020 Budget Statement


Watch Hon. Ken Ofori-Atta addressing Parliament on the budget statement and economic policy.




HIGHLIGHTS OF2020 BUDGET STATEMENT AND ECONOMIC POLICY





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