STRUCTURAL REFORMS OF THE MEDIUM TERM AGENDA
Sustainability of Government's Wage Bill
84. Mr. Speaker, as indicated earlier, the huge wage bill has crowded out
the fiscal space for spending on critical social intervention and other
infrastructural programmes. Going forward, the following measures
will be taken to ensure the sustainability of the SSPP and reverse the
worrying trend of the public sector wage bill:
ï‚· Consistent with the White Paper on the SSPP, the SSPP is to be
implemented within a five-year period, therefore, aspects of the
pay policy with huge fiscal implications will be spread over the
five-year period rather than rush their implementation;
ï‚· Government will ensure that the SSPP, which is an all-embracing
Government policy, will apply to all Ministries, Departments and
Agencies that are fully or partially on Government budget except
those which are exempted by the Constitution or an Act of
Parliament. In addition, Government will speed up the migration
of subvented agencies onto the mechanized payroll system as
part of measures to ensure efficient control and management of
the payroll.
ï‚· The FWSC, the MOF, Public Sector Reform Secretariat, the
Public Services Commission, the Office of the Head of Civil
Service and other relevant agencies will carry out
complementary public sector reforms to ensure that pay is
linked to productivity in the public service. Public service
workers are expected to match the increased pay that has
resulted from the implementation of the SSSS with improved
productivity to ensure the sustainability of the pay policy;
ï‚· The wage adjustments in the public service and the current
exercise on the rationalization and standardization of categories
2 and 3 allowances will be undertaken within budgetary
constraints in the implementation period;
ï‚· Government has decided that emphasis will be laid on
determining the National Minimum Daily Wage and negotiating
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23
the public service wage before the annual budget is submitted
to Parliament for approval;
ï‚· Government will, as a matter of urgency, ensure that market
premium guidelines are issued to provide more clarity on the
determination of market premium and prevent its abuse; and
ï‚· The payroll upgrade, auditing, and biometric registration
exercises will be mainstreamed into the Government payroll and
human resource management system and there will be strict
enforcement of existing wage management regulations on
government officials who renege on their responsibilities,
thereby, promoting payroll fraud.
External Sector
http://ghanaian-chronicle.com/wp-content/uploads/2013/03/mps.jpg 85. In the medium term, the thrust of external sector policy will focus on
the accumulation of external reserves to provide support for exchange
rate stability during external shocks. The reserve build up will be
largely supported by favourable world market prices of the major
export commodities and anticipated foreign inflows from portfolio and
foreign direct investments.
Price and Money
86. The objective of monetary policy will be maintained on price stability
which provides an enabling environment for economic growth. In the
medium term, monetary policy stance will focus on risks in the outlook
that may confront the economy from both domestic and external
sources, and at the same time remain complementary to government's
fiscal consolidation efforts in the years ahead. The Bank of Ghana will
continue to enforce prudential regulations to ensure soundness and
stability of the financial system to enhance financial intermediation
efforts in the economy.
Outlook for Debt Management in 2013
87. Mr. Speaker, the end December 2012 debt simulation exercise showed
vulnerability to the exchange rate in a stress test with the debt to GDP
ratio approaching its threshold by the end of 2018. The main
vulnerabilities are related to a high debt service-to-revenue ratio
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24
which may pose a risk to the fiscal outlook. While overall public sector
debt is projected to marginally increase in relation to GDP in the
medium term, the ratio of 49.5 per cent at end December 2012 does
not provide strong buffers against shocks. Government in this regard
will embark on a gradual fiscal consolidation and additional revenue
mobilization measures, supported by a stable economic growth.
Loan Financing and Infrastructure Projects
88. Mr. Speaker, Government is on course with the implementation of key
infrastructure projects under various loan financing arrangements
committed in 2011 and 2012. Works are far advance on the Western
Corridor Gas Infrastructure Project under CDB of China, the Bui Hydro
Dam Project by EXIM China is expected to be completed this year, the
water projects by EXIM Turkey and Korea are to commence this year,
as well as the Tamale Project, the Flyover Project and some portion of
the Eastern Corridor Road Project supported by the Brazilian PROEX
facility. MoF is working diligently with the beneficiary MDAs to finalize
relevant project preparation document to ensure the timely
preparation of these and other projects in the pipeline. The completion
of these projects will significantly reduce the infrastructural deficit in
critical areas of the economy.
Petroleum Hedging Programme
89. Government plans to continue the petroleum hedging programme in
2013 with plans to hedge about 2 million barrels of crude oil per
month, aimed at stabling crude oil prices. To this end, MOF will
embark on an education campaign with the aim of managing public
expectations about the programme and underline the fact that the
programme is first and foremost a price protection strategy, rather
than a profit-making venture.
Resource Mobilisation Initiatives
Tax Revenue
90. Mr. Speaker, Domestic Tax Effort as measured by the Tax/GDP (nonoil)
ratio improved from 15.1 percent in 2011 to 16.0 percent in 2012.
However, the Tax/GDP ratio including oil (excluding exemptions)
increased from 15.4 percent in 2011 to 16.3 percent in 2012. The
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following reasons accounted for the performance of Tax revenue in
2012:
ï‚· higher than anticipated payments for corporate tax from some
mining companies on account of high gold prices;
ï‚· higher than anticipated payments for mineral royalties on
account of high gold prices;
ï‚· efficiency gain from the ongoing revenue administration reform;
and
ï‚· shift from specific to ad valorem basis in excise taxation.
91. Mr. Speaker, while recognizing the strong revenue performance in
2012, the country needs to sustain revenue mobilization efforts in
view of the huge funding requirements needed to close the country's
infrastructure gap and domestic payment of arrears. The focus on
revenue generation in the 2013 fiscal year therefore, is to expand the
tax base and improve the efficiency of tax administration.
Tax Bills
92. Mr. Speaker, the Customs, Excise and Preventive Service, the Internal
Revenue Service and the VAT Service were organized into one
business unit, the Ghana Revenue Authority. The GRA reform was
established in 2010 and the reforms have brought Customs, Internal
Revenue Service and the VAT Service under one Commissioner
General. The specific functions of Customs and Domestic tax divisions
are being headed by various Commissioners. The reforms will
ultimately lead to efficiency gain and remove duplication of functions.
However, the various Commissioners will have to maintain flexibility in
carrying out their function under the overall control of the
Commissioner General. The Ministry of Finance will assist to smoothen
out this reorganization so that the intended synergy in operations will
be achieved with positive results.
93. Mr. Speaker, there is the need to consolidate and harmonize all the
various tax laws. During the year, the following laws will be tabled
before Parliament.
ï‚· The Revenue Administration Bill;
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ï‚· The Value Added Tax Bill;
ï‚· The Income Tax Bill;
ï‚· The Customs Bill; and
ï‚· The Excise Bill.
94. Mr. Speaker, the following are the tax proposals for 2013.
Domestic Taxes
Personal Income Tax Bands
95. Mr. Speaker, in line with our social democratic principles, personal
income taxation will continue to be used as a measure for equitable
distribution of income and also for protecting low income earners.
Taking cognizance of the current inflation trends in the country, the
impact of real increases in GDP on personal incomes, and to
compensate for the loss in purchasing power of income earners, the
income tax thresholds and brackets are being revised as follows:
Table 1: Tax Bands
Revision of Personal Reliefs
96. Mr. Speaker, personal reliefs are a means of reducing the burden on
tax payers in certain categories. It is noted that not many tax payers
take advantage of personal reliefs which are granted when tax returns
are filed. I would wish to encourage tax payers to file their annual
returns to take advantage of reliefs since subsidies are not the right
way for compensating low income earners. The following personal
reliefs are proposed:
Income Band
(GH¢)
Rate
(%)
First 1,584 Free
Next 792 5
Next 1,104 10
Next 28,200 17.5
Exceeding 31,680 25
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Table 2: Personal Reliefs
Item 2011 Rate 2013 Rate
Marriage/Dependent
Responsibility
100 currency points 200 currency points
Old Age 100 currency points 200 currency points
Child Education 100 currency points up
to 3 Children
200 currency points up to
3 Children
Aged Dependent 50 currency points 100 currency points
Training Cost 200 currency points 400 currency points
97. Mr. Speaker, the Ghana Revenue Authority (GRA) is to set up a
dedicated office to assist tax payers in filing their tax returns.
Additionally, the GRA will simplify the present tax returns form which
will make it a lot more convenient for tax payers who have no other
income apart from their salaries to file returns.
98. Mr. Speaker, in order to set the pace, all staff of the GRA must file
their 2012 tax returns and assist other public and civil servants to do
the same.
Vehicle Income Tax
99. Mr. Speaker, in the last revision of vehicle income tax, existing
quarterly rates were increased for vehicles of all categories except
trotros and taxis. It is only fair that we adjust these rates that have
not changed since 2005. For example an owner of a 33-seater
commercial vehicle is paying only GH¢15 per quarter (GH¢ 5 per
month) as compared to rates paid by public servants and other
workers in the formal sector. It is to be noted that the incidence of
this tax is not on the drivers of these vehicles but on the owners.
There is an alternative for the owners to opt to file their tax returns if
they believe this presumptive tax is too high. Owners who will opt to
file their tax returns will take advantage of the additional deductions
allowed for business (e.g. capital allowances and personal reliefs).
Environmental Taxes
100. Mr. Speaker, the growing concern about climate change in many
advanced and developing countries have brought environmental issues
to the forefront of the policy agenda in most of the advanced and
developing countries of which Ghana should not be left out. The
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argument has always been pointing at the need to introduce a more
comprehensive environmental tax system. Ghana is currently facing
several environmental challenges and in the area of environmental
sanitation, solid waste management presents a challenge to many
District Administrations across the country.
101. Mr. Speaker, the annual rate of generation of solid waste is high and
over the past decade this has increased from about 7,000 metric
tons/day in 1996 to about 13,800 metric tons/day in 2011 (Ministry of
Local Government and Rural Development, 2012). The waste problem
is most deplorable in urban communities, which struggle with everincreasing
populations due to rural-urban migration.
102. Mr. Speaker, one of the major constraints militating against waste
collection and disposal is lack of funding. Currently, the main sources
of funding for environmental sanitation services are from the national
budgetary allocation and donor support while the Municipal and
District Assemblies are expected to use significant portions of their
locally generated revenue to handle their waste collection and
disposal. These sources of funding have been inadequate and in the
case of donor support, unsustainable. Other competing demands in
the national budget tend to make funding for environmental sanitation
a low priority.
103. Mr. Speaker, in view of this an Environmental Fiscal Reform working
group has been formed to look at the various fiscal instruments
around the world that can be used to raise revenue for addressing
environmental problems in Ghana. The group will also look at how the
funds raised can be appropriately applied to addressing the
environmental concerns in waste management, transport and mining
sectors to mention a few. The group will present some proposals in
the 2014 budget.
Environmental tax on Plastic
104. Mr. Speaker, Environmental taxes have been introduced on plastics at
a rate of 15 percent with exemptions for pharmaceuticals and
agricultural sectors. Also, plastic for water sachets were exempted. Mr.
Speaker, it is time as a nation for us to find a solution to the
environmental hazards of water sachets. In this respect, the Ministry
of Finance (MoF) and the GRA will later in the year submit proposals
for the review of the tax regime.
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Penalty on over-aged vehicles
105. Mr. Speaker, previously cars beyond a certain age were completely
banned in the country. However, it was later decided to impose
penalties instead of the outright ban on old aged cars. Considering the
environmental implications of over age cars and the risk associated
with its usage on our roads, the MoF and the GRA will conduct a
comprehensive review of the tax regime on overaged cars and submit
proposals to Parliament in the course of the year.
Tax Amnesty
106. Mr. Speaker, in the 2012 Budget we offered a tax amnesty to all
companies and individuals who have defaulted in the payment of their
taxes. This amnesty is still in effect. It appears from returns so far
received that the response from the real estate sector is not
encouraging. I wish to call on real estate owners who receive rental
charges to take advantage of the ongoing exercise on tax amnesty
and get registered.
107. Mr. Speaker, businesses in the oil and gas sector who supply final
products and do not report their incomes for taxation are also being
advised to take advantage of the tax amnesty and register for tax
purposes. The GRA will embark on a rigorous exercise after the grace
period ends to bring all defaulters to book.
Airport Tax
108. Mr. Speaker, the Kotoka International Airport is not only serving as a
hub for the West Africa region but, in addition, the number of
passengers and airlines are increasing putting the facilities in use at
the airport under pressure. It is the intention of the government to
upgrade the facilities to higher standards.
109. Mr. Speaker, currently, revenue raised from the Airport tax is shared
between the GRA and the Ghana Airport Company. I am proposing
that the Ghana Airport Company be allowed to retain all Airport tax
collections so that the entire revenue raised can be used to develop
both the international and local airports. The Ministry of Finance and
the Ministry of Transport will in due course present a sustainable plan
for infrastructure development and expansion of all airports in Ghana.
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Communication Service Tax (CST)
110. Mr. Speaker, when the CST was introduced in 2008, it was fixed at an
ad valorem rate of 6 percent on a minute call charge. In addition, an
interconnectivity charge was added to raise revenue for services
rendered by mobile operators to each other when they are dealing
with calls from customers. The 6 percent was arrived at in order to
remove the cascading nature of the interconnectivity charge.
However, Communication Service Companies have raised an issue of
double taxation in the interconnectivity charge.
111. Mr. Speaker, in consultation with the industry a bill will be presented
to Parliament later this year to take care of these issues which will not
lead to any revenue loss to the State. However, the communication
companies are being urged to pay all accrued arrears.
Customs Assurance/Destination Inspection
112. Mr. Speaker, for more than fifty years, all imports into the country
have been under pre-shipment destination inspection. This system has
not resolved the issue of corruption at the ports. This system cannot
be allowed to continue forever. Therefore, after the existing contracts
expire, the Customs Division of the GRA will assume the full
responsibility for valuation, quality and quantity of imports, in line with
the new thinking of the World Trade Organization (WTO). The GRA
will develop a module that will enhance the existing risk management
module and assist in carrying out this assignment. Currently, the GRA
has eight commodities under their valuation assurance program.
During the course of the year, the coverage will be increased to cover
all the high value commodities.
Tax Technical Assistance
113. Mr. Speaker, Ghana was subjected to a Phase one Peer Review by the
Global Forum of the Organisation of Economic Cooperation and
Development (OECD) in October 2010 and the associated report
published in May 2011. Ghana subsequently joined the Global Forum
in May 2011. The report made seven recommendations which must be
implemented before Ghana undergoes the Phase II Review in the
second half of 2013. To implement the Phase 1 recommendations,
some amendments to the legal and regulatory framework are
required. The amendments relate to the Anti-Money Laundering Act
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31
2008, (Act 794), the Companies Code 1963, (Act 179) and the Internal
Revenue Act, 2000 (Act 592). Government will in the next few weeks
introduce the relevant Bills to effect these amendments.
114. Mr. Speaker the phase one review also recommended that Ghana
increases its Tax Information Exchange Agreements (TIEA). These
TIEAs allow jurisdictions to exchange information among themselves
for tax and other purposes. This tool is used by tax authorities around
the world to mitigate tax risk and tax evasion across borders. In 2013,
Ghana will initiate steps to enter into more TIEAs with our relevant
trade and investment partners.
115. Mr. Speaker our relationship with some Development Partners led to
the promulgation of a Transfer Pricing Regulation in 2012. Even
though Act 592 made provision for transfer pricing abuses, it could not
be implemented because of lack of a transfer pricing regulations.
Staffs of GRA and other stakeholders like the Judiciary, the Police and
the business community have been trained with the support of the
Development Partners. In 2013, a special unit will be set up to
conduct special audit to detect transfer pricing abuses. It is believed
that these special audits will lead to a reduction in transfer pricing
abuses and, ultimately, result in bigger profits declaration for tax
purposes.
Increase in Value Added Tax threshold
116. Mr. Speaker, Government will continue to improve efficiency in tax
administration. The VAT registration threshold which is currently GH₵
90,000 will be increased to GH₵120,000 in fiscal year 2013. This
proposal which was announced in the 2012 Budget Statement was not
implemented for technical reasons. Businesses with turnover of less
than GH₵ 120,000 over a twelve month period will pay a presumptive
tax of 6 percent of turnover. Other businesses that do not deal in
goods on which VAT can be applied will pay a flat rate of 3 percent.
These taxpayers will fall within the category of small taxpayers and
the GRA will put in place the necessary measures to operationalize the
small tax payer offices that are being set up as part of the tax
administration segmentation programme. This will be in line with an
enhancement of the presumptive tax system. The increase in VAT
threshold does not constitute an increase in VAT rate.
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Tax Exemptions
117. Mr. Speaker, it is estimated that tax expenditure is about 3.28 percent
of GDP. Compared to the actual tax revenue/GDP ratio of 17.1
percent, it can be concluded that this is on the high side. In the past,
attempts to reduce exemptions have been marginally successful. We
intend to introduce new control measures to be incorporated in the
new Bills to be tabled before this House later this year to reduce the
overall impact of tax exemptions. A recent OECD study showed that
direct tax accounted for most of the exemptions, followed by VAT and
customs exemptions. Prior to this study most of the control measures
that were put in place affected mainly customs exemptions. Once we
are aware of the entire impact we will go ahead and review the overall
tax exemptions regime will be reviewed in order to drastically reduce
the granting of tax exemptions.
118. Mr. Speaker, against this backdrop MOF and GRA will undertake a
comprehensive review of the following:
ï‚· tax Incentive for agro-processing business;
ï‚· tax incentive for location of businesses;
ï‚· withholding tax rate on management and technical fees; and
ï‚· VAT on imported services.
119. Mr. Speaker, in order to reduce the abuses of tax incentives, a special
monitoring team will be formed in the Ministry of Finance and the GRA
to monitor the administration and use of tax incentives granted to
NGO's, charitable organizations and all other institutions under the
various incentive regimes. The team will also conduct periodic costbenefit
analysis of the various tax incentives currently in place.
120. Mr. Speaker, over the past years, government has given tax incentives
to some professionals in the public institution under a special vehicle
waiver scheme. In order to create a level playing field for all
professionals in the country and also to prevent a situation of
extending the incentive to all professionals (which will eventually
erode the tax base), the GRA and the TPU will conduct a
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33
comprehensive review of the special vehicle waiver scheme and later
present some proposals to Parliament in the course of the year.
Corporate Tax
121. Mr. Speaker, over the years corporate tax rates have been reduced to
a level of 25 percent for most of the corporate entities in the country
except the natural resources sector which has a rate of 35 percent.
For tax certainty, we do not intend to vary these rates. However,
recent observations are giving cause for alarm. Transfer pricing
abuses, inflated cost, and unallowable expenses are reducing the
amount of profits for taxation. The GRA will conduct in depth audit to
stem these abuses.
Tax Refunds
122. Mr. Speaker, delayed payment has been a common feature of our VAT
refund and duty drawback system. The Ministry of Finance and
Economic Planning will ensure that there are enough resources
available for refunds and duty drawbacks. Initially, two percent of
GRA's collection will be dedicated to this Fund. At the end of each
financial year, any excess amount standing in the refund account will
be transferred into the Consolidated Fund. Ultimately, the GRA in its
administrative improvement, will adopt an accounting system that will
allow taxpayers to offset such refunds against other tax liabilities.
Capital Allowances
123. Mr. Speaker, the maximum cost base of road vehicle other than
commercial vehicle is currently pegged at GH₵25,000 for capital
allowance purposes. The amount was last reviewed in 2004 from
GH₵15,000 per Act 669. It is proposed that a new amount not
exceeding GH₵70,000 will apply in 2013 due to the rising cost of
vehicles. This will be restricted to brand new vehicles with capacity not
exceeding 1.8 cc acquired by a business.
Windfall Profit Tax
124. Mr. Speaker, in 2012 the windfall profit tax Bill was tabled in
Parliament. The Bill sought to impose a Windfall Profit tax of 10
percent on mining companies. Unfortunately, the Bill could not be
considered by Parliament. A committee is reviewing all stability
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34
agreements and incentives in the mining sector, and civil society
interest groups have also submitted recommendations on how to
adequately tax the mining industry. In the coming weeks, Government
will seek to re-introduce the Bill in Parliament after due consultation
with all stakeholders.
Withholding Tax on Rents
125. Mr. Speaker, in 2002 a final withholding tax was imposed on the rents
received as investment income at a rate of 10 percent. This was
further reduced to 8 percent in 2006. Though we still have a deficit in
residential accommodation, more landlords are converting residential
accommodation into commercial ones. The GRA will improve the
administration of rent tax, including withholding elements, in
conjunction with the street/premises numbering programme as well as
property taxation by the MMDAs, particularly, with the Ministry of
Local Government and Rural Development.
Policy Initiatives
126. Mr. Speaker, in 2013 the following policy initiatives will be undertaken:
Development of a Fiscal Risk Management Plan
127. Mr. Speaker, developments over the years has exposed the need to
carefully identify and manage all sources of fiscal risk to the budget.
Governments have, over the years, endeavoured to ensure
macroeconomic stability through the implementation of prudent fiscal
and monetary policy measures. However, there remains a huge
challenge in bringing unplanned and unanticipated expenditures under
control.
128. These expenditures include contingent liabilities from State
Enterprises, subnational governments and unexpected legal claims. In
the absence of an institutional framework, and effective management
system, government's ability for effective fiscal management is
reduced thereby, undermining the credibility of the budget.
129. Mr. Speaker, in recognition of this, the Ministry of Finance in the
coming year, will develop and implement a Fiscal Risk Management
Strategy (FRiMs). The strategy will identify all sources of fiscal risk,
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35
categorize them, undertake a comprehensive analysis of the risk and
put in place a plan to manage them, ensuring that they are minimized
as much as possible.
130. An institutional framework and monitoring systems and other risk
mitigation measures will be developed to manage all contingent
liabilities.
131. It is expected that over the medium term, this initiative will lead to an
improved and sustained government fiscal outcomes.
Water for Schools
132. Mr. Speaker, most schools in Ghana do not have access to clean water
and sanitation facilities. For a lot of the boarding schools, access to
water remain a major challenge and affect learning and other critical
activities of the schools.
133. As part of efforts to address the deficit in water provision, Government
has decided, as a priority over the medium term, to ensure that all
primary, junior and senior high schools in the country have access to
clean and potable water.
134. The Ministry of Works and Housing will collaborate with the Ministry of
Education to undertake a needs assessment of water and sanitation
facilities in all existing schools and draw up a programme to meet the
existing gaps. With regards to new schools, conscious effort will be
made to provide adequate water and sanitation facilities as part of the
essential requirements for the schools.
Infrastructure Development through Public Private Partnership
(PPP)
135. The country faces an infrastructure funding gap of US1.5 billion a
year. In the coming year, government will increase its effort to involve
the private Sector in public infrastructure development. In connection
with that a PPP Law is being developed to provide the framework for
the increased involvement of the private to meet the current
infrastructure deficit.
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136. It is the expectation of Government that Ghanaian development
professionals and institutions will appropriately position themselves to
participate actively in the opportunity open to the Private Sector and
thereby pride themselves as having provided adequate local content in
this new business initiative.
Millennium Challenge Account
137. Mr. Speaker, with the successful completion of the Compact I, Ghana
was selected as one of the four countries to submit proposals for
Compact II. Taking cognisance of the critical energy requirement of
the country, the Compact II has been entirely earmarked for the
energy sector. It is expected that the implementation in the Compact
will make Ghana self-sufficient in Energy generation
DACF Management Reforms
138. Mr. Speaker, aligning, MMDA's budget with the national budget will
provide a medium term outlook in all sources of funding to the
MMDAs. In connection with that, measures will be put in place to
ensure that DACF, DDF and UDG ceilings are determined at the
budget preparation stage. It is expected that the timely provision of
such information will improve the efficiency and effectiveness of
budget management at the local level.
'Girls in ICT' Programme nascent
139. To increase the interest of girls in ICT knowledge, the Ministry of
Communication will collaborate with the Ministry of Gender Children
and Social Protection to initiate the celebration of girls in ICT
Programme as part of the activities marking the annual
commemoration of the World Communication and Information Society
Day.
Securities Depository
140. Mr. Speaker, the country has two depositories for the management of
stocks and other securities. These depositories are databases that
store electronic information of individuals and group investments
made for treasury bills, bonds, shares etc.
141. Mr. Speaker, in 2013 the two Depositories will be merged to create
one National depository for all securities. This will provide easy access
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37
to information on securities, enhance efficiency in the securities
market and lower transaction cost.
142. Mr. Speaker, government will also implement the following measures
to improve efficiency in the delivery of services in 2013. They include:
ï‚· A temporary freeze on the creation of new GYEEDA modules
and the recruitment of additional new beneficiaries in pursuance
of government policy of reviewing and re-aligning GYEEDA
activities;
ï‚· A review of the allowances of Chiefs to include judicial
allowances in response to their adjudication role;
 The provision of GH₵10,000,000.00 to furnish the Parliamentary
Tower Block and GH₵10,000,000.00 for the construction of MPs
Constituency Offices;
ï‚· The registration of all government Vehicles with GV Number
Plates.
ï‚· The introduction of a hire purchase plan for the acquisition of
Vehicles by government officials;
ï‚· Taking of inventory of all government Vehicles in all MDAs and
MMDAs will be undertaken;
ï‚· The standardisation of allocation of fuel coupon for official use
across Ministries;
ï‚· The piloting of electronic toll collection on the Tema Motor-way
and other road networks;
ï‚· The Media Development Facility will be resourced with additional
GH₵2,000,000.00;
ï‚· The promotion of the use of Solar Energy and portable Gas
stoves;
ï‚· The restructuring of the National Board for Small Scale
Industries (NBSSI) into an umbrella supervisory body for SMEs;
and
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ï‚· The consolidation of the role of National Identification Authority
(NIA) to be responsible for the compilation and management of
all primary Biometric data for official use.
SECTORAL PERFORMANCE AND OUTLOOK
ECONOMIC SECTOR
Performance for 2012
Agriculture
143. Mr. Speaker, the use of technology to improve agricultural production
has been the main objective of Government policy in agriculture. The
key interventions are: the adoption of livestock production
technologies, agricultural mechanization, irrigation development,
fertilizer subsidy, seed improvement, quality standardization, and the
implementation of modern buffer stock management techniques.
144. In this regard, Mechanization Service Centres were established in 62
districts. The Agricultural Machinery Subsidy Programme also provided
150 units of 50HP Cabrio compact tractors imported in semi knockdown
forms. The first lot of 50 units of these tractors were distributed
to smallholder farmers across the country.
145. Mr. Speaker, under the Fertilizer and Seed Subsidy Programme
300,000 farmers benefitted from 170,000mt of fertilizer and 20,000kg
of improved seeds of maize, rice and soybean.
Fisheries and Aqua Culture
146. Construction works have begun in earnest on the Anomabo Fisheries
College to improve then knowledge and skills of the players in the
sector. A curriculum for the college has also been developed.
Lands and Natural Resources
147. The core objectives in natural resource management is to ensure
efficient and sustainable management and utilization of the nation's
lands, forests, wildlife and mineral resources for the socio-economic
growth and development of the country. To accomplish these
objectives the following programmes were undertaken:
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39
ï‚· 9,426 hectares of land were demarcated for afforestation, out of
which 3,698 hectares were planted with trees. This created not
only over10,000 full time jobs but also restored restored
degraded forest landscape and addressed the deficit in wood
supply for both industrial and domestic purposes.
ï‚· the establishment of the Regional Task Forces to collaborate
with National Security to address issue of illegal mining and
resultant land degradation. So far, five regional task forces are
operational in the Eastern, Greater Accra, Ashanti, Western and
Central Regions;
ï‚· the completion of a blueprint to establish District Lands
Commission Offices to decentralize land administration services;
and
ï‚· the completion of a policy document on granting large tracts of
agricultural land to improve the management of land acquisition
in the country.
Trade and Industry
148. Mr. Speaker, the Governance structure for Private Sector Development
Strategy (PSDS) II and the trustees to manage the accompanying
fund has been set up.
149. Mr. Speaker, it is gratifying to note that the Ayensu Starch factory at
To be Continued