kpmg 2017 Post Budget Highlights | KPMG | GH

2017 Budget Highlights

2017 Budget Highlights

According to the Finance Minister, Hon Ken Ofori-Atta, the performance of the economy in 2016 was far from the budgeted growth and outturn under the previous administration. Inflation increased from 17.7 percent at the end of 2015 to 19.2 percent in March 2016 and later declined to 15.4 percent in December. Inflation for 2017 is targeted at 11.2 percent at year-end. This, if achieved, will stabilise price levels to some extent. To stimulate growth and development under the current government, the year will see several social and economic interventions and a number of tax cuts. Government will streamline Energy Sector Levies to accommodate existing legacy debt to improve liquidity in the banking sector and the private sector. An increase in banks’ liquidity has the potential of stimulating growth in the private sector as the banks will have enough money to grant loans to customers and also allow the banks to take on more projects than before. Companies operating in the oil and gas, financial services, telecommunications and mining sectors are to list a minimum percentage of their shares on the Ghana Stock Exchange (GSE) within five years of commencement of operations and help to increase the activities on the capital market.

1000

Related content

2017 Budget Highlights

WHY THIS MATTERS

  • To stimulate growth and development under the current government, the year will see several social and economic interventions and a number of tax cuts. Government will streamline Energy Sector Levies to accommodate existing legacy debt to improve liquidity in the banking sector and the private sector. An increase in banks’ liquidity has the potential of stimulating growth in the private sector as the banks will have enough money  to grant loans to customers and also allow the banks to take on more projects than before. Companies operating in the oil and gas, financial services, telecommunications and mining sectors are to list a minimum percentage of their shares on the Ghana Stock Exchange (GSE) within five years of commencement of operations and help to increase the activities on the capital market. This will make the GSE attractive in the sub-region, draw investment and help develop the Ghanaian capital markets.
  • To curb the issues of “Ghost” names on Government payroll, Government intends paying salaries using the Ghana Inter-Bank Payment and Settlement Systems’ (GhIPSS) e-zwich platform as a pass-through filter. If this is done, the meagre government resources that otherwise would have ended up in wrong hands will be put to proper use to benefit the citizenry.
  • Government will ensure that entrepreneurs receive the maximum benefit by introducing programmes such as business development services, financing, among others, to support these businesses.

CONTACTS

For additional information or assistance, please contact 

KPMG

Marlin House

13 Yiyiwa Drive

AblenkpeTel   +233 302 770454

Fax +230 207 8899

info@kpmg.com.gh

© 2017 KPMG, a Ghanaian registered partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Connect with us

 

Request for proposal

 

Submit