The Finance Minister, Dr. Mohammed Amin Adam, on Tuesday, July 23, 2024, presented the 2024 Mid-Year Budget Review in Parliament.
The highly anticipated budget presentation is crucial as the nation prepares for the 2024 general elections.
According to the sector minister, the country is rebounding stronger than anticipated.
He attributed the economic growth to the stabilisation of the exchange rate, decline in inflation, and boost in gross international reserves.
Dr Amin Adam stressed that the deliberate policies implemented by the government were yielding results, hence the declining inflation rate.
The minister also stated that growth continues to exceed expectations.
He highlighted that the 4.7 per cent growth rate reported by the Ghana Statistical Service for the first quarter of 2024 surpasses the revised target of 3.1 per cent.
Here are 15 key highlights from the budget as presented by the Finance Minister.
- Govt to reintroduce road tolls in 2025
The government will develop a framework for the re-introduction of road and bridge tolls in 2025.
This is to facilitate the process for the implementation of a modernised and efficient road and bridge tolling system commencing in 2025.
- Gov’t disburses GH₵5.4bn to support LEAP, school feeding, NHIS programmes
Disbursement of GH¢5.4 to support LEAP, school feeding programme, capitation grant and the National Health Insurance Scheme (NHIS) since January 2024.
Dr. Adam emphasized the government’s unwavering commitment to enhancing the quality of life for all Ghanaians, particularly the nation’s most vulnerable populations.
He stated that the substantial disbursement reflects the government’s determination to provide essential social services and support.
- GH¢10bn invested in road projects since January 2024
The government has invested almost GH¢10 billion in the road sector since January 2024, to enhance transportation and spur growth.
Additionally, equipment has been secured to complement the efforts of local authorities in improving community roads nationwide.
- Completion of the Domestic Debt Exchange Programme (DDEP)
Substantial progress has been made since the completion of the DDEP in September 2023.
Two coupon payments have since been honoured, with the second payment of about GH¢5.9 billion in February 2024 and the third coupon payment of GH¢6.1 to be made in August 2024.
The timely payments of these coupons are expected to improve investor confidence in the domestic market and bolster the overall economy.
- Govt pays GH₵12bn to bondholders and settles outstanding claims
The government has paid about GH¢12 billion to bondholders under the Domestic Debt Exchange programme, since February, to demonstrate its commitment to the programme.
Additionally, the government has disbursed GH¢1.5 billion to settle outstanding claims relating to the financial management companies.
- Gov’t invests GH¢135 million in the National Identification Programme
The government has invested about GH¢135 million in the National Identification Programme since January 2024.
This is to advance the digitalisation drive and expand the unique identification system.
- Gov’t deploys Ghana.Gov platform to over 1,500 public institutions
In line with its commitment to ensuring full disclosure of retained internally generated funds by public institutions, the government has deployed the Ghana.Gov Platform to over 1,500 public institutions.
It has also rolled out the Ghana Integrated Financial Management Information System (GIFMIS) to 287 IGF-reliant public institutions.
As of the end of June, 140 public institutions including GRA, had gone live and received payments through the Platform, totalling 56.4 billion Ghana Cedis, an increase of 34.6% compared to the same period last year.
- 10 fishing ports constructed
The government has constructed 10 fishing ports to improve the livelihood of fishing communities.
The Jamestown Fishing Port, which is the last project, is expected to be completed and commissioned by the end of 2024.
- Ghana’s public debt hits GH¢742bn.
The government’s provisional total debt stood at GH¢742 billion (US$50.9 billion) as of June this year.
This figure represents 70.6 per cent of the Gross Domestic Product (GDP).
- Reduction in irregularities
There has been a consistent reduction in irregularities reported by the Auditor-General since 2020.
Between 2022 and 2023 irregularities were reduced by 32% amounting to savings of about GH¢5.2 billion.
- SME Growth and Opportunity Programme launched
The Small and Medium-sized Enterprises (SME) Growth and Opportunity Programme (SME GO) has been launched to connect SMEs with resources, expertise, and opportunities.
In all, the government has mobilised about GH¢8.2 billion through DBG, GhanaExim Bank, GEA and other partners for SMEs to grow and increase competitiveness in regional markets.
The government will also continue the collaboration with key institutions such as the Ministries of Finance, Trade and Industry, the Ghana Commodity Exchange (GCX), Venture Capital Trust Fund, GIRSAL, NEIP, and YEA to support the SME ecosystem in this new era of SME development.
- Nursing and Teacher Trainee Allowances
The government continues to honour the payment of trainee allowances, a total amount of GH¢219 million was paid as an allowance to 104,000 nursing trainees from January to June 2024.
Similarly, a total amount of GH¢216 million has been released as an allowance to 67,000 teacher trainees for the 2023/2024 academic year.
- Gov’t invests GH¢1.5 billion to support free SHS students
The government spent about GH¢1.5 billion to support 1,488,575 students under the Free Senior High School (SHS) programme between January and June this year.
To date, a total of over GH¢ 9.9 billion has been spent on the programme and a cumulative total of 5.7 million young people have benefitted from this initiative.
- Ghana is positioned as an internationally competitive tourism destination
Ghana is being positioned as an internationally competitive tourism destination.
Tourist arrivals have increased from about 500,000 in 2023 to almost 600,000 in the first half of 2024, increasing receipts to about US$1.8 billion compared to US$1.5 billion over the same period last year.
- More public libraries constructed
The government has constructed more public libraries and has increased the total number of public libraries from 61 in 2017 to 115 by 2023.