FULL SPEECH: 2024 MID-YEAR FISCAL POLICY REVIEW

The below has the speech delivered on Tuesday, July 23, 2024 by the Minister of Finance, Dr. Mohammed Amin Adam.

2024 MID-YEAR FISCAL POLICY REVIEW

SPEECH
BY

DR. MOHAMMED AMIN ADAM, MP
MINISTER FOR FINANCE & MP FOR KARAGA

23RD JULY 2024

2024 MID-YEAR FISCAL POLICY REVIEW

The Right Honourable Speaker, Honourable Members of Parliament, on the authority of His Excellency, President Nana Addo Dankwa Akufo-Addo, I present to you the Mid-Year Fiscal Policy Review of the Budget Statement and Economic Policy of the Government of Ghana for the 2024 Financial Year.
This Mid-Year Fiscal Policy Review presentation is in fulfilment of Section 28 of the Public Financial Management Act, 2016 (Act 921).
Mr. Speaker, this Statement is an abridged version of the Mid-Year Fiscal Policy Review of the Budget Statement and Economic Policy for the 2024 Financial Year. I respectfully request that the entire Mid-Year Fiscal Policy be captured in the Hansard.
Mr. Speaker, I want to begin this Mid-Year Policy Review by expressing my gratitude to H.E. the President and Commander-in-Chief of the Ghana Armed Forces, Nana Addo Dankwa Akufo-Addo for appointing me to serve as the Finance Minister, especially at this critical time in our nation’s history. It is such an honour and privilege to serve in this capacity and I am grateful for the opportunity.
As the Member of Parliament for Karaga, and one of your own, I wish to also express my profound appreciation to you, Right Hon. Speaker and Hon. Members for the immense support I have received. I will continue to rely on the full cooperation of the House as we work to serve our country.
Growing up as a young boy in Aboabo-Tamale, it never crossed my mind that I would one day stand before you to address this august House in this capacity. The young people out there should therefore know that – IT IS POSSIBLE – with hard work, dedication, and by the Grace of God all of you have limitless opportunities to serve our country.
Mr. Speaker, the last two years have been extremely challenging globally, and Ghana has not been an exception. The difficult economic environment has truly affected businesses and families, particularly the vulnerable in our society.
These challenges have severely affected households, increased the cost of living and limited the creation of job opportunities. Our young people continue to seek employment opportunities beyond what the State can provide. Mr. Speaker, it has indeed been a difficult time and I deeply empathise with our fellow Ghanaians.
Mr. Speaker, over the last two years, Government has embarked on a number of decisive measures to get us back on the path of fiscal consolidation, economic stability and growth. I am happy to note that these policies we have implemented are yielding the expected results.
• Growth continues to exceed our expectations. The 4.7 percent growth rate reported by the Ghana Statistical Service for first quarter 2024 exceeds the 3.1 percent recorded in the same period in 2023;
• Inflation is declining. End-June inflation rate of 22.8 percent, a reduction of 31 percentage points from the December 2022 which confirms the target of 15 percent by end 2024 is possible;
• Exchange rate has largely stabilised, compared to December, 2022, despite the recent pressures. The 18.6 percent depreciation rate to the US Dollar as of June 2024, represents an improvement over the 22.0 percent recorded for the same period last year; and
• Gross International Reserves reached 3.1 months of import cover as at end June 2024 against 2.5 months of imports cover in the same period last year.
Mr. Speaker, it is evident that we are on the right trajectory. The economy is rebounding stronger than anticipated. The choices we have made and the policies we are implementing are yielding results. We have reversed the negative trends, all the indicators are looking better. I want to assure you that we will stay on this path and continue to make the right choices. Our economic recovery is fast and strong.
Mr. Speaker, over the last six months, we have sought to bring some urgency and speed to the implementation of key government programmes and also swiftly provided the necessary support for growth-enhancing initiatives. I am again happy to inform this august House that with the support of His Excellency the President, Cabinet and other Stakeholders,:
• We have successfully concluded the second review of our Extended Credit Facility with the International Monetary Fund (IMF) which led to the disbursement of the 3rd tranche of US$360 million, bringing total disbursement to about US$1.6 billion;
• We have completed the Debt Restructuring programme with the Official Creditor Committee (OCC), covering US$5.1 billion resulting in approximately US$2.8 billion of debt relief. This means that we will not service our debt to our official creditors from 2023 to 2026;
• We have concluded negotiations with our Eurobond holders, covering US$13.1 billion, which will lead to a cancellation of US$4.7 billion of our debt and provide debt service relief of US$4.4 billion between 2023 and 2026.
• We have concluded our negotiations with five (5) of the seven (7) Independent Power Producers, which will lead to a saving of some of US$6.6 billion over the lifetime of the Power Purchase Agreements (PPAs);
• We have reined in expenditures to ensure we are within 2024 Budget Appropriation and exceeded the midyear non-oil revenue target by 3.7 percent. In effect, Mr. Speaker, we are living within our means. Indeed, consistent with our programme with the IMF, we are on course to achieving a primary surplus of 0.5 percent of GDP by end of the year.
• We have cleared all outstanding Bank Transfer Advice (BTAs) up to 2022, and working hard to pay BTAs from 2023;
• We have embarked on major reforms of State Owned Enterprises (SOEs), especially those in the Energy and Cocoa sectors, to be fiscally prudent and reduce their risk on the budget.
• We have launched the SME GO programme to provide financial and technical support to SMEs.
• We have disbursed GH¢5.4 billion to support LEAP, School Feeding programme, Capitation Grant and NHIS since January, 2024 to reduce the burden on the vulnerable in our country.
• We have spent about GH¢1.5 billion to support 1,488,575 students under the Free SHS programme between January and June this year;
• We have paid about GH¢12 billion to bondholders under our Domestic Debt Exchange programme, since February, to demonstrate our commitment to the programme.
Mr. Speaker, we have invested almost GH¢10 billion in the Road Sector since January, 2024 to enhance transportation and spur growth. I can also confirm that Government has secured equipment to complement the efforts of our local authorities in improving community roads nationwide.
Mr. Speaker, in line with our commitment to infrastructure development, we continue to make progress on projects such as the Komfo Anokye Teaching Hospital, Ofankor-Nsawam Road, Keta Water Supply, Obetsebi Lamptey and Flowerpot Interchanges, the three (3) by-passes on the Kumasi-Accra Highway, and the Tema-Mpakadan Railway Line.
We have completed the Prempeh the First International Airport in Kumasi and the Yakubu Tali International Airport in Tamale. Agenda 111 Hospitals are at various stages of completion. We have completed the Afari Military Hospital in Kumasi and many other hospitals across the country.
To advance our digitalisation drive and expand our unique identification system, we have invested about GH¢135 million in the National Identification Programme since January 2024.
Mr. Speaker, this significant progress has been underpinned by an environment of enhanced and inclusive engagements with key stakeholders. These engagements have provided useful feedback, improved understanding and bolstered cooperation.
Mr. Speaker, the stabilisation is real. We are determined to stay the course on our fiscal consolidation programme. Increased attention will continue to be given to prudent management of approved expenditures and improved revenue mobilisation.
We will also continue with our programme of delivering critical physical and digital infrastructure. To generate economic activity and increase growth, we will focus on increasing our investments in the roads sector under the Economic Roads Improvement Programme (ERIP). This programme will ensure that roads are built to connect producing areas to market centres and to key tourist sites. Accordingly, certain critical economic roads have been prioritised. We are structuring a financial arrangement that will ensure the timely completion of these strategic roads:
• Accra-Kumasi highway, which has been ongoing for 15 years;
• Accra-Takoradi highway;
• Takoradi-Agona Nkwanta Junction; and
• Tema-Afienya.
We will work with the private sector to close the national housing deficit and optimise land use in urban areas. We will use Public Private Partnership (PPP) to deliver public infrastructure projects.
Mr. Speaker, Cabinet has also granted approval for:
• the disbursement of an additional GH¢1.5 billion to provide relief and bailout for those whose funds have been locked up in the fund management companies;
• the establishment of a framework for the re-introduction of Road and Bridge Tolls in 2025;
• the operationalisation of the integrated property tax system; and
• a review of the Fiscal Responsibility rules to include a debt rule to support debt sustainability as well as the establishment of independent Fiscal Council.
Mr. Speaker, our outlook for the rest of the year also takes cognisance of key risks. The IMF, this month, has already noted that “the Global Economy is in a sticky spot.” Upside risks to inflation and their impact on interest rates remain. These co-exist in an environment of escalating trade tensions and increased policy uncertainty.
On the domestic front, we recognise the need to meet large debt service payments relating to our just-ended debt operations. We will continue to review the performance of key SOEs and engage stakeholders to decisively mitigate their risks.
Despite these significant risks, this Mid-Year Fiscal Policy Review reasserts Government’s commitment to pursue growth in a context of fiscal consolidation and debt sustainability.
Mr. Speaker, the developments in key operations of the economy as at mid-year have prompted shifts in some of the assumptions that underpinned the 2024 Budget presented in November, 2023. There have been changes in amortisation, interest cost due to the external debt operations and disbursement forecast for externally funded projects. In this regard, we will remain within the appropriation for 2024.
Accordingly, we are not seeking supplementary funds in this Mid-Year Review. We are determined to be more efficient, strategic and intentional to entrench fiscal consolidation and strongly promote growth.
Mr. Speaker, in today’s presentation of the Mid-Year Policy Review of Government, I will provide updates on the following key areas:
• An update on the macro and fiscal performance for the year 2023;
• A review of the implementation of the 2024 Budget for the first half of the year;
• the current economic developments and outlook, progress made on the implementation of the IMF-supported PC-PEG;
• the status of Ghana’s debt restructuring programme;
• efforts at pursuing growth and development within a stable macroeconomic environment;
• the status of implementation of Government programmes, among others.

Global Economic Developments
Economic Growth

Mr. Speaker, global growth projections indicate a moderation from 3.5 percent in 2022 to 3.3 percent in 2023. This trend is expected to vary slightly into 2024 with a growth of 3.2 percent and 3.3 percent in 2025 according to the July 2024 update to the World Economic Outlook (WEO).
The forecasts for Sub-Saharan Africa point to an uptick from 3.4 percent in 2023 to 3.7 percent and 4.1 percent in 2024 and 2025 respectively. This growth trajectory is supported by the reversal of earlier anticipated weather-related shocks and ongoing improvements in supply conditions.

Inflation

Mr. Speaker, global headline inflation is expected to decline from 6.7 percent in 2023 to 5.9 percent in 2024 and further to 4.4 percent in 2025, according to the WEO update for July 2024.
In the Sub-Saharan Africa region, headline inflation is projected to decrease to 6 percent in 2024 from 10 percent in 2023. However, about one-third of the region’s countries continue to experience double-digit headline inflation, largely influenced by the pass-through impacts of significant currency depreciations.

Commodity Prices

Mr. Speaker, gold prices have reached record highs, rising by 8 percent annually due to safe haven flows and robust central bank buying. Prices are expected to increase moderately to $2,100/oz throughout 2024.

Update on Domestic Economic Developments in 2023 and First Half of 2024

Mr. Speaker, when we presented the 2024 Budget to this august House last November, we shared our progress in terms of macroeconomic performance for the first three quarters of 2023. Today, with the full-year data at our disposal, I present a more comprehensive update on the performance of the domestic economy in 2023 and the first half of 2024.
Mr. Speaker, the year 2023 was characterized by improved macroeconomic stability, resilience, and gradual recovery. Despite the persistent global headwinds stemming from the aftermath of the COVID-19 pandemic and the Russia-Ukraine conflict, we observed some encouraging developments. We witnessed a gradual shift towards economic stabilization, with most key macroeconomic indicators showing signs of improvement including growth proving to be more resilient and robust than initially programmed.
Real Sector Developments
Overall GDP
Mr. Speaker, provisional 2023 GDP statistics published by the Ghana Statistical Service (GSS) in April 2024, indicate that growth of the economy in 2023 was more resilient than projected. The economy expanded by 2.9 percent against a target of 1.5 percent, whilst non-oil GDP grew by 3.3 percent. In the first quarter of 2024, growth was 4.7 percent, the highest growth recorded since second quarter of 2022. This growth largely reflected an expansion in the Industry Sector which recorded a growth of 6.8 percent

Price Developments

Mr. Speaker, headline inflation decelerated significantly to 23.2 percent as at end-December 2023, representing 31.4 percentage points reduction from the peak of 54.6 percent recorded in December 2022. In June 2024, headline inflation declined to 22.8 percent. The decline in price pressures was broadly driven by tight monetary policy stance, ongoing fiscal consolidation of government, and low volatility of transport fares due to stable crude oil prices.

Interest Rates Developments

Mr. Speaker, in 2023, interest rates broadly showed downward trends at the shorter end of the yield curve whiles rates at the longer-dated segment of the market, remained stable. The 91-day and 182-day Treasury bill rates decreased to 29.4 percent and 31.7 percent in December 2023 and further down to 24.9 percent and 24.6 percent in June 2024 from 35.5 percent and 36.2 percent recorded, in December 2022.

Banking Sector

Mr. Speaker, the banking sector rebounded in 2023 with an improved balance sheet performance in December 2023 on the back of increased liquidity flows from deposits and shareholders’ funds. Total assets increased by 29.7 percent to GH¢274.9 billion as at end-December 2023. Total investments increased by 47.5 percent to GH¢100.2 billion, driven by the banks reallocated portfolios towards short-term investments in response to the increase in short term money market rates.

External Sector Developments

Mr. Speaker, developments in Ghana’s external sector in 2023 was marked by a general reduction in external payments, resulting in a Current account surplus and reduced Capital & Financial account outflow. Consequently, the overall Balance of Payments recorded a surplus of US$461.6 million.
The current account improved to a surplus of US$1.41 billion, driven by a strong growth in remittances as the reforms in the Fintech ecosystem started to yield positive results.
Mr. Speaker, for the first half of 2024, the trade balance recorded a provisional surplus of US$1.81 billion, higher than the outturn of US$1.60 billion recorded in the corresponding period of 2023. This was the result of a larger increase in exports which outweighed the increase in imports.
The improved trade surplus, together with an even stronger growth in remittances and the lingering reduction in income payments due to the debt standstill, resulted in larger Current account surplus of US$1.28 billion (1.5 percent of GDP) in the first half of 2024. This compares with a Current account surplus of US$863.0 million (1.1 percent of GDP), registered in the same period a year ago.

International Reserves

Mr. Speaker, Gross International Reserves (GIR) stood at US$5.9 billion, equivalent to 2.7 months of import cover for goods and services, at the end of December 2023. Our reserves further increased to US$6.9 billion, equivalent to 3.1 months of import cover at the end of June 2024.

Exchange Rate

Mr. Speaker, the Ghana Cedi experienced a relatively moderate depreciation against major international currencies in 2023 compared to the previous year. Cumulatively, the Ghana Cedi depreciated by 27.8 percent, 31.9 percent and 30.3 percent against the US dollar, the Pound Sterling and the Euro, respectively in 2023. In the first half of 2024, the Cedi depreciated by 18.6 percent, 17.9 percent and 16.0 percent against the US dollar, the Pound Sterling and the Euro, respectively. This compares to a depreciation of 22.0 percent. 26.3 percent and 23.8 percent against the US dollar, the Pound Sterling and the Euro, respectively in the first half of 2023.

Fiscal Sector Performance in 2023 and the first half of 2024
Summary of 2023 Fiscal Performance

Mr. Speaker, Government’s fiscal operations for 2023 shows significant improvement in the fiscal balances, demonstrating an effective fiscal consolidation with the primary balance on commitment basis reducing by over 4 percentage points of GDP in 2023 relative to 2022.
The fiscal performance for 2023 is presented within the context of the revised 2023 overall deficit (on commitment basis) target of 5.7 percent of GDP, with a corresponding primary deficit of 0.5 percent of GDP. On cash basis, the revised 2023 overall deficit target was 6.4 percent of GDP.
• Overall budget deficit (on commitment basis) was GH¢31.5 billion (3.7% of GDP), compared to the MYB target of GH¢49.0 billion (5.7% of GDP);
• Primary balance (on commitment basis), was a deficit of GH¢2.2 billion (0.3% of GDP), which was an improvement over the deficit target of GH¢4.1 billion (0.5% of GDP), and a significant improvement from the deficit 4.3 percent of GDP recorded in 2022;
• The overall budget balance (on cash basis) was a deficit of GH¢28.0 billion (3.3% of GDP), which is much lower than the target of GH¢55.0 billion (6.4% of GDP), and down from the deficit of 10.6 percent of GDP recorded in 2022;
• Primary balance (on cash basis) was a surplus of GH¢1.4 billion (0.2% of GDP), which is an improvement compared to the deficit target of GH¢10.1 billion (1.2% of GDP) and the deficit 3.2 percent of GDP recorded in 2022.
Mr. Speaker, provisional data on Government fiscal operations for the first half of 2024 indicates that revenue mobilization and expenditure execution were broadly in line with the target, resulting in an overall budget deficit on commitment basis of GH¢21.3 billion. The corresponding Primary balance (on commitment basis) was a deficit of GH¢2.3 billion (0.2% of GDP), compared to the deficit target of GH¢2.4 billion (0.2% of GDP).
Mr. Speaker, the overall cash budget deficit was GH¢36.1 billion (3.4% of GDP), compared with the deficit target of GH¢35.2 billion (3.3% of GDP). The corresponding primary balance (on cash basis) was a deficit of GH¢17.1 billion (1.6% of GDP), compared with the period target of GH¢8.8 billion (0.8% of GDP).
Mr. Speaker, Total Revenue and Grants for the first half of 2024 amounted to GH¢74.7 billion,1.9 percent below the target of GH¢76.1 billion. Despite the shortfalls, the outturn shows a nominal year-on-year growth of 24.6 percent and constitutes 42.3 percent of the Budget’s Total Revenue for the year. The revenue performance was mainly driven by the strong performance in Non-oil Tax Revenue and Non-oil Non-Tax Revenue which partly offset the shortfalls in oil receipts for the period.
Mr. Speaker, Total Expenditures (commitment) amounted to GH¢95.9 billion, below the budget target of GH¢104.8 billion.
Public Debt Developments in 2023 and Half-Year (H1) of 2024
Mr. Speaker, as at end-December 2023, the provisional central government and guaranteed debt in nominal terms was GH¢608.4,4 billion This was made up of GH¢351.1billion and GH¢257.2billion for external and domestic debt respectively.
Mr. Speaker, the provisional total central government debt as at end-June 2024 stood at GH¢742.0 billion, equivalent to 70.6 percent of GDP. This indicates an increase of 22.0 percent due to the effect of the Cedi depreciation and disbursements from creditors. The stock consists of external debt of GH¢452.0 billion and domestic debt of GH¢290.0 billion, representing 60.9 percent and 39.1 percent of the total debt stock, respectively. As a percentage of GDP, external and domestic debt represented 43.0 percent and 27.6 percent, respectively.

REVISED MACRO ECONOMIC FRAMEWORK

Mr. Speaker, Ghana’s medium-term macroeconomic and financial outlook and prospects remain positive and favourable despite the challenging global environment. The ongoing implementation of the IMF-supported Post-COVID-19 Programme for Economic Growth (PC-PEG) reinforces our commitment to navigate through global uncertainties and address domestic challenges. Government’s unwavering dedication to maintaining macroeconomic stability, promoting investment, and enhancing social protection programs continues re-echo our objective of building back better.
Mr Speaker, it is has become necessary to revise the 2024 macroeconomic framework due to recent domestic and global economic developments, including the impact of the debt restructuring.
Mr Speaker, key revisions to the macro-fiscal targets for 2024 include:
• Overall Real GDP Growth rate revised upwards from 2.8 percent to 3.1 percent;
• Non-Oil Real GDP Growth rate of revised upwards from 2.1 percent to 2.8 percent;
• Growth in GDP deflator scaled down from 20.2 percent to 17.5 percent;
• Nominal overall GDP has been revised from GH¢1,050 billion to GH¢1,020 billion;
• Non-Oil GDP has been revised from GH¢979 billion to GH¢977 billion;
• End-period headline inflation remains unchanged at 15 percent;
• Primary Balance on Commitment basis is maintained at a surplus of 0.5 percent; and
• Gross International Reserves (including oil funds and encumbered/pledged assets) to cover not less than 3.0 months of imports.

Revision to the 2024 Fiscal Framework

Mr. Speaker, accounting for these developments, the revision of the 2024 fiscal framework indicates that the primary balance on a commitment basis remains unchanged at the targeted surplus of 0.5% of GDP, in line with the IMF-supported PC-PEG objectives.
Mr. Speaker, Total Revenue and Grants have been revised upward by 0.5 percent to GH¢177.2 billion (17.4% of GDP) in 2024, from the 2024 Budget target of GH¢176.4 billion (16.8% of GDP), largely reflecting increase in Non-Oil Non-Tax Revenue which has been increased from GH¢14.8 billion (1.4% of GDP) to GH¢15.6 billion (1.5% of GDP) to reflect dividends from interest accrued in the ESLA accounts.
Mr. Speaker, Total Expenditure (commitment) has been revised downward by 2.1 percent, to GH¢219.7 billion (21.5% of GDP) from the original budget projection of GH¢226.7 billion (21.6% of GDP). This revision is largely on the back of Interest Payments which has been revised downwards by GHs7.9 billion to reflect the impact of the external debt restructuring on external interest payment.
Mr. Speaker, the overall balance on commitment basis has been revised from a deficit of GH¢50.3 billion (4.8% of GDP) to a deficit of GH¢42.5 billion (4.2% of GDP). The primary balance on commitment basis is maintained at surplus of 0.5% of GDP.
Mr. Speaker, the cash deficit of GH¢54.1 billion (5.3% of GDP) is expected to be financed from both foreign and domestic sources. The Net Foreign financing will amount to GH¢15.2billion (1.5% of GDP) representing 28.1 percent of the total financing for 2024. Foreign financing will include disbursements from the second and third tranche of the IMF ECF programme and World Bank Development Policy Operation (DPO) funding.
Mr. Speaker, the Domestic Financing will amount to GH¢38.9 billion (3.8% of revised GDP), representing 71.9 percent of the total financing for 2024. This is expected to be sourced from the issuances of debt at the short end of the domestic market and inflows from Ghana Petroleum Funds.

Medium-Term Debt Management Strategy (MTDS)

Mr. Speaker, the 2024 Medium Term Debt Strategy (MTDS) will continue to build on the strategy implemented in the first half of the year. The strategy will focus on an appropriate financing mix aimed at supporting fiscal consolidation without compromising macroeconomic stability and debt sustainability.

UPDATE ON GHANA’S DEBT RESTRUCTURING PROGRAMME AND RELATED MATTERS
Update on Domestic Debt Exchange Programme

Mr. Speaker, I am pleased to report that Government has made substantial progress since the completion of the Domestic Debt Exchange Programme (DDEP) in September 2023. We have successfully honoured two coupon payments, with the second payment of about GH¢5.9 billion in February 2024. Furthermore, we are on track to make the third coupon payment of GH¢6.1 billion in August 2024. The timely payments of these coupons will undoubtedly improve investor confidence in the domestic market and bolster the overall economy.

Progress on restructuring of official bilateral debt

After an eight (8) month period of negotiations, Government and the Official Creditor Committee (OCC) reached an agreement in principle on 12th January, 2024 outlining the broad parameters for the restructuring of official bilateral debt.
Subsequently, on 11th June, 2024, Government and the OCC reached agreement on an MoU covering the restructuring of about US$5.1 billion of the official bilateral debt.
Mr. Speaker, I am pleased to report that this agreement resulted in debt service relief amounting to US$2.8 billion over the course of the IMF programme period (2023-2026), providing critical liquidity support.
Mr. Speaker, the MoU will serve as the guiding document for amending individual country claims. The next critical step is the direct engagement with the bilateral creditors to implement the mutually agreed restructuring terms.
Update on Eurobond Holders
Mr. Speaker, Government is committed to securing debt treatment from all other external creditors consistent with the comparability of treatment principle enshrined in the G20 Common Framework.
We are pleased to announce that on 24th June, 2024, Government reached an agreement in principle with the Eurobond holders committees to restructure approximately US$13.1 billion of outstanding Eurobonds. Additionally, it reduces the nominal value of the outstanding Eurobonds by US$4.7 billion and provides debt service relief of about US$4.4 billion during the programme period.
Mr. Speaker, the debt restructuring will result in reducing the present value of our public debt to 55 percent by 2028, as embedded in the IMF-supported PC-PEG programme.
Progress on restructuring of other commercial loans
Mr. Speaker, the Government of Ghana remains committed to engaging in good faith negotiations with other commercial external creditors, comprising primarily private banks and suppliers or contractors that have provided commercial loan facilities.
Our objective is to finalise restructuring agreements with these creditors that uphold the principle of comparability of treatment and addresses Ghana’s requirement for debt relief, ensuring a comprehensive and sustainable approach to our external debt obligations.
The debt restructuring has been a crucial pillar of Ghana’s economic recovery following the 2022 crisis. It has helped to restore confidence in the economy and the following benefits are evident:
• rapid restoration of macroeconomic stability and debt sustainability;
• avoidance of steeper fiscal adjustment;
• creation of fiscal space for development spending; and
• prevention of a domestic and external banking crisis.
Mr. Speaker, despite the benefits, we remain committed to exercising caution, informed by the lessons learned from our experiences and the sacrifices of every Ghanaian. Our debt strategy going forward includes deepening reforms to ensure irreversibility and building buffers to reduce vulnerabilities and enhance resilience.

PURSUING GROWTH & DEVELOPMENT WITHIN A STABLE MACRO ECONOMIC ENVIRONMENT
REVENUE MOBILISATION AND EXPENDITURE CONTROL MEASURES

Mr. Speaker, in the 2024 Budget Statement and Economic Policy, Government outlined a series of revenue measures consistent with the Medium-Term Revenue Strategy (MTRS). The measures reflected the commitment of Government to improve the tax-to-GDP ratio from the current 14.1 percent to 18 – 20 percent by 2027.
Domestic Revenue Mobilisation
In the 2024 Budget, Government amended existing legislation to give effect to the revenue measures. These measures also aim to broaden the tax base and improve tax compliance for a more equitable and efficient revenue system.
Mr. Speaker, whilst not all the measures were implemented in the first half of the year, through enhanced compliance and enforcement, the Ghana Revenue Authority (GRA) exceeded its midyear target by 0.2 percent. Similarly, Non-Tax Revenue (NTR) performance as at the end of June exceeded the target by 14.0 percent.
Mr. Speaker, in line with its commitment to ensuring full disclosure of retained internal generated funds by public institutions, Government has deployed the Ghana.Gov Platform to over 1,500 public institutions and also rolled out the Ghana Integrated Financial Management Information System (GIFMIS) to 287 IGF-reliant public institutions.
As at the end of June, 140 public institutions including GRA, had gone live and received payments through the Platform, totalling GH¢56.4 billion , an increase of 34.6 percent compared to the same period last year.
Outlook (July – December 2024)
Mr. Speaker, for the rest of the year, the Ministry of Finance will deepen engagements with both GRA and relevant stakeholders to effectively implement policy, administrative and regulatory measures to ensure that the revenue targets are met.
Mr. Speaker, to broaden the tax base, a simplified digital solution for the operationalization of the modified taxation scheme will be deployed, as well as an electronic bookkeeping system. Additionally, 2000 more taxpayers will be on-boarded onto the electronic invoicing system (e-VAT) by the close of the year.
GRA will also continue with the cleaning of the taxpayer register and on-board more taxpayers onto its electronic systems to improve the taxpayer experience and compliance. In addition, GRA will continue to enhance data sharing with other tax jurisdictions to boost revenue mobilisation.
Government will re-institute the integrated property tax system by synthesizing data from MMDAs, Lands valuation, ECG and other relevant government agencies to create a comprehensive digital property record database that will transform property data management and ensure a more efficient and accurate property tax system.
Mr. Speaker, to enhance revenue mobilization by IGF-reliant Covered Entities, discussions would be held around provisions of incentives to those institutions that exceed their revenue target for the year.
The Ministry will continue the deployment of the Ghana.Gov Payment Platform to remaining public institutions and ensure that all those already on-boarded go-live. Additionally, the outstanding activities for the full rollout and utilisation of the GIFMIS for the processing of IGF expenditures will be completed by the end of the year.
Mr. Speaker, Government will also develop a framework for the re-introduction of Road and Bridge Tolls to facilitate the processes for the implementation of a modernised and efficient road and bridge tolling system commencing in 2025.

Expenditure Control Measures

Mr. Speaker, the 2024 Budget outlined a number of expenditure measures as part of the fiscal consolidation process.
We have
• undertaken a stocktaking exercise and the prioritisation of projects within the medium-term capital expenditure ceiling;
• initiated a Blanket Purchase Agreement to fully capture multi-year commitments or contracts in the GIFMIS;
• streamlined earmarked funds as part of the ongoing expenditure rationalisation measures;
• issued a circular to all covered entities on the implementation of the sanctions regime in respect of the non-compliance with PFM requirement; and
• enrolled 856 procurement entities on the Ghana Electronic Procurement System (GHANEPS);
Mr. Speaker, we will also enforce the Cabinet approved expenditure measure to reduce purchase of imports by public institutions by 50 percent and purchase locally produce substitute.

STATUS OF IMPLEMENTATION OF KEY GOVERNMENT PROGRAMMES

Mr. Speaker, the 2024 Budget Statement provides a framework for the Government to address the economic difficulties and challenges that arose in recent times. The measures that Government undertook have led to stability and the economy is rebounding.
Government also continued the implementation of ongoing programmes and seeks in this Mid-Year review, to provide an update on the progress and the outlook for the rest of the year.
Roads and Highways
Mr. Speaker, Government is determined to improve road infrastructure in the country. This has been done through the construction of new roads, and the upgrade and maintenance of old ones.
The rehabilitation and maintenance of road infrastructure nationwide are at various stages of completion. These include:
• Juaboso-Boinzan on-going roads
• Winneba-Kasoa
• Karaga Town Road
• Gushegu Town
• Tolon Daboya Road
• Nanton-Karaga-Gushegu Highway
• Sefwi Wiawso town roads
• Accra – Kumasi road
Some of the completed road projects include:
• Dadiesoba-Esiankyim-Manhyia
• Antwi Agyeikrom – Debra Camp & others
• Sunyani & Berekum Inner City Roads
• Atebubu Town Roads
• Assin Fosu – Dunkwa – Cocoa Station
• Kwahu Tafo – Miaso
Mr. Speaker, in addition, the following major roads are at various stages of completion:
• the rehabilitation of the Tamale – Tatale road;
• Phase 2 of the Tema Motorway Roundabout;
• Construction of the Flyover over the Accra Tema Motorway from the Flowerpot roundabout on the Spintex Road to East Legon;
• Construction of the Phase 2 works under the Suame Interchange;
• Dualization of Nsawam – Ofankor Road;
• Works on the Agona Nkwanta – Tarkwa Road;
• Works on the Dome-Kitase Road; and
• Phase 2 of Obetsebi Lamptey Interchange and Ancillary Works.

Railways Development

Mr. Speaker, our commitment to building an efficient railway network is not just about transportation; it is about fostering economic growth, creating jobs, and enhancing connectivity throughout our nation.
The Nsawam – Accra – Tema railway line is completed and in use. The construction of the iconic Tema to Mpakadan railway line is 99 percent complete and is expected to be fully completed this year. The construction of the Kojokrom-Manso section, is expected to be completed before the end of 2024. The Manso – Huni Valley, which includes the extension of the line into the Takoradi Port, is expected to be completed by May 2026.
Transport
Mr. Speaker, Government constructed about 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.
Mr. Speaker, construction of an Oil and Gas Services Terminal at the Takoradi Port, is 77 percent complete. In addition, construction of Phase 1 of the Boankra Integrated Logistics Terminal (BILT) is about 70 percent complete.
Employment and Labour Relations
Mr. Speaker, Government, in collaboration with its Social Partners, has developed a draft Labour Bill, 2024 to strengthen labour administration and regulation of the world of work. Key reforms proposed include strengthening labour migration governance, improving employment coordination, extension of maternity leave, and introduction of paternity leave, among others. The Labour Law is expected to be promulgated before the end of year.
Government continues to reform and position the Youth Employment Agency as a facilitator of jobs for the teeming youth. In the first half of the year, about 90,000 beneficiaries were engaged, including 15,000 youth in community policing, 6,000 youth in community health, 1,500 in prison services and 2,100 youth in Garment and Apparel.
Elections and Civic Education
Mr. Speaker, as part of the preparation towards the conduct of the 2024 Presidential and Parliamentary Elections, the Electoral Commission registered voters in 268 District Offices and 775 electoral areas. The Commission also compiled the Special Voters list and managed applications for vote transfers and proxy voting.
Mr. Speaker, during the first half of 2024, the National Commission for Civic Education (NCCE) carried out sensitisation and awareness creation for a total number of 3.1 million people regarding the peaceful conduct of the 2024 General Election.
Security Agencies
Mr. Speaker, as part of activities to effectively coordinate security coverage for the electoral activities, the police service has established the Police Elections Security Secretariat under the authority of the National Election Security Taskforce.
Public Safety
Mr. Speaker, in line with our commitment to upholding the rule of law, we have constructed a 12-storey state-of-the-art Law House to accommodate the Office of the Attorney General and Ministry of Justice. This significant project, originally initiated by the President during his tenure as Attorney General in 2001, was officially commissioned by him on June 10th, 2024.
Mr. Speaker, there has been a consistent reduction in Irregularities reported by the Auditor-General since 2020. Between 2022 and 2023 irregularities reduced by 32% amounting to savings of about GH¢ 5.2 billion .
⁠Also due to the policies, guidelines and the PFM measures implemented by MoF, about 99.26% of all irregularities identified in 2023 by the Auditor-General are recoverable. MoF is working with the Internal Audit Agency, Internal Audit Units and Audit Committees to recover these amounts.
GROWTH INITIATIVES
SME Growth and Opportunity Programme
Mr. Speaker, this economy has been anchored on the entrepreneurial spirit of our SMEs over the decades. They employ 80% of our people and contribute about 70% to GDP. However, SMEs continue to have challenges regarding access to finance; widening skills gaps; limited access to technology and digital infrastructure; and regulatory constraints.
Mr. Speaker, as I indicated earlier, the SME Growth and Opportunity Programme (SME GO) has been launched to connect SMEs with resources, expertise, and opportunities. Altogether, we have mobilised about GH¢8.2 billion through DBG, GhanaExim Bank, GEA and other partners for SMEs to grow and increase competitiveness in regional markets. We are grateful the IFC for the US$400 million and the African Development Bank for the US$45 million support towards this programme. We will also continue our collaboration with key institutions such as the Ministries of Finance, Trade and Industry, the Ghana Commodity Exchange (GCX), Venture Capital Trust Fund, GIRSAL, NEIP, MASLOC, and YEA to support the SME ecosystem in this new era of SME development.
Agriculture and Aquaculture
Mr. Speaker, we prioritised the agricultural sector due to its far-reaching impact on the economy and livelihoods.
To improve our food security, we are implementing the enhanced Planting for Food and Jobs 2.0. Through this program, we introduced the input credit system and adopted technology-driven platforms, enabling farmers and value-chain actors to operate transparently and efficiently.
Mr. Speaker, to support the private sector in enhancing fish and aquaculture production, we have scaled-up the supply of premix fuel since January 2024. Additionally, we are also partnering with private enterprises and are providing employment to about 10,000 people to expand and venture further into aquaculture.

Economic Enclaves Project

Mr. Speaker, Government has remained focused on expanding the Economic Enclave Projects (EEP) under the GhanaCARES Programme. We secured 50,000 acres of lands to ensure security of tenure and de-risk agriculture investments, thereby attracting private sector involvement in the cultivation of rice, maize, soya, poultry, grains, vegetables, and animal husbandry.
At the Kasunya EEP in the Greater Accra Region, Government has taken significant steps to de-risk private sector operations for the cultivation of rice, including the:
• Completion of 18 kilometers of feeder roads from Tsopoli Junction (on the main Accra – Ada Road) to the enclave.
• Extension of 18 kilometers electricity to the enclave;
• Development of a twenty (20)-kilometer irrigation canal for consistent water supply and year-round farming.
Additionally, we have trained about 500 youths on agriculture entrepreneurship through a US$6.1 million partnership with the MasterCard Foundation. These investments have resulted in 397.5 tonnes of rice harvested in Phase I of the project. They are also leveraging approximately US$7 million in climate funds from the World Food Programme.
Mr. Speaker, at Kumawu in the Ashanti Region, we have developed and allocated 1,000 acres of land to build the largest poultry brooder house and hatchery in Ghana. Additionally, 600 acres of rice has been harvested and 300 acres of maize has been cultivated in the first season of production.
Mr. Speaker, at Banda in the Oti Region, 950 acres of land has been cleared and 40 kilometres of access road has been constructed to the farm. Two private sector actors are ready to start cultivation of yam, potatoes and maize. Government will operationalise two new Enclaves in Sunsong in the Northern and Yagaba in the North East regions.
Digital Transformation
Mr. Speaker, to strengthen the digital skills for our youth under the GhanaCARES programme, a Digital Youth Skills Hub is being constructed on a five-acre plot at the University of Ghana. Phase I of the project is on course for completion by the end of the year.
Trade and Industry
Mr. Speaker, under the Trade and Industry sector, we are committed to providing targeted support to the pharmaceutical, textiles and garment, as well as the automotive industries. Our efforts aim to attract new investments, expand job creation, and enhance value addition. Under our 1D1F flagship initiative, we have supported 321 factories across 142 districts nationwide, creating jobs for about 170,000 Ghanaians.
Mr. Speaker, guided by the Strategic Anchor Industries (SAIs) framework, 13 vehicle assembly plants has been established and 4,700 vehicles produced locally. We aim to penetrate the sub-regional market through the AfCFTA framework and pursue local assembly of Electric Vehicles (EVs) in line with our Electric Vehicle Policy.
Tourism
Mr. Speaker, 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 same period last year.
To complement this progress, we have enhanced tourism infrastructure, marketing, supply-chain links, through the redevelopment of key tourist sites such as Aburi Gardens, Yaa Asantewaa mausoleum, the museum at Ejisu, and the Pikworo Slave camp.

Sports Development

Mr. Speaker, we have made significant progress in enhancing sports infrastructure, talent development, and ensuring that our athletes have the resources they need to excel.
Ghana successfully hosted the 13th African Games from 4th to 23rd March 2024 in Accra at the new international standard multi-complex sports facility at Borteyman, and the newly commissioned University of Ghana Sports Stadium. We placed sixth on the medals table with a total of 69 medals: 19 gold, 29 silver, and 21 bronze. This is Ghana’s best performance at an international multi-sport event, so far.
Mr. Speaker, the Black Challenge of Ghana also participated and won the trophy in the 2024 African Amputee Football Cup of Nations tournament hosted and organised in Egypt. This win secured the team a spot at the 2026 Amputee World Cup Tournament.
SOCIAL INTERVENTIONS
Government continued to implement various social intervention programmes to protect the poor and vulnerable, alleviate poverty, and improve the country’s human development indices.
Education (Free SHS/TVET Programme)
Mr. Speaker, there is empirical evidence that education is the great leveller that improves opportunities for any child along the social stratification. As UNICEF has already pointed out, “Education is a key social and cultural right and plays an important role in reducing poverty and child labour. Furthermore, education promotes democracy, peace, tolerance, development and economic growth.”
Convinced about these objectives, Government has, over the last 8 years, prioritised education. This is to ensure that over time, skills will be improved to impact productivity, grow the economy and improve living standards.
Mr. Speaker, in 2008, the President, then the flagbearer of the New Patriotic Party, announced the policy of Free Senior High School. For 8 years, he kept his convictions.. On 2nd March 2017, Government allocated GH¢400 million to implement Free SHS. We also indicated that our oil resources will fund the programme, as the President believes that every Ghanaian child must benefit from the oil resources.
The impact of the programme is evident. 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, many of whom may not have had this opportunity.
Mr. Speaker, to complement this effort, we have provided facilities under TVET to empower our young people with employable skills; with 168,000 students enrolled in the 2023-2024 year. Additionally, we are constructing 10 STEM Schools and 10 STEM Centres across the country. We are also building the first two (2) STEM colleges in Karaga in the Northern and Tepa in Ashanti regions of Ghana. We have distributed 900,000 tablets for secondary school students. Quality education has been given considerable focus. The performance of the students at WASSCE in 2023 is also the best since 2015.
Capitation Grant
Mr. Speaker, to ease the financial burden on parents and guardians of public basic school pupils, Government disbursed about GH¢38 million as Capitation Grant for the first half of 2024 to ensure schools have adequate resources to provide quality education. Additionally, funds have been released for the payment of feeding grants to all public Special Schools (Institutions for the Handicapped) for the 2024 academic year, thereby supporting vulnerable students.
Mr. Speaker, it is worth noting that the capitation grant has increased from GH¢5.00 in 2016 to GH¢15.00 in 2024.
Ghana School Feeding Programme
Mr. Speaker, the Ghana School Feeding Programme commenced in 2006/2007 with 1,950 beneficiaries. Over the years, there has been considerable growth of the Programme from 1.6 million beneficiaries in 2016 to over 3.8 million beneficiaries in 2023 and is currently in the region of 4 million beneficiaries as of June 2024. In one year, we have added over 200,000 children.
Mr. Speaker, an amount of over GH¢662 million was paid to caterers as at June 2024. The Programme continues to provide employment for over 34,000 caterers and cooks, especially women to generate income to enable them to take care of their families. The Programme has also created a ready market for local farmers thereby boosting the local economy.

Livelihood Empowerment Against Poverty
Mr. Speaker, to protect the real value of the benefits for our most vulnerable households, Government has in the last two years increased the LEAP grant by 200% from GH¢64.00 in 2022 to GH¢256.00 in 2024; meaning that we have doubled the grant every year for the last two years. This measure ensures that the programme’s outcomes are effectively achieved. Under the enhanced LEAP, the number of beneficiary households has increased from 212,917 in 2016 to 324,073 in 2024.
Health Service Delivery
Mr. Speaker, as part of Government’s digitalisation agenda, the e-Health project is progressing steadily with concentration on health centres and polyclinics, this year. As of June 2024, a total of 49 polyclinics and 144 health centres have been connected, enhancing access to patient data at the point of care, claims management, and real-time bio-surveillance data. This has significantly strengthened the country’s health delivery system.
Mr. Speaker, the following projects were completed between January and June 2024:
• the Urology and Nephrology Centre of Excellence at the Korle Bu Teaching Hospital;
• District Hospitals at Kumawu and Fomena; and
• CHPS Compounds at Debiso, Nkroful Denkyira, Ananekrom and Kwanyarko and many more CHPS compounds across the country.

National Health Insurance Scheme

Mr. Speaker, as part of Government’s efforts to increase access to health service, the National Health Insurance Authority (NHIA) reviewed the benefit package to include childhood cancers, prostate cancer, mental health care, annual health check, dialysis services and care for sickle cell patients.
Mr. Speaker, by the end of 2024, the NHIS intends to increase enrolment of active members from 14.5 million representing 44.3 percent coverage, to 20.8 million representing 63.5 percent of the total population. NHIS will also intensify sensitisation on the electronic enrolment platforms by introducing cashless payments, integration with GIFMIS Platform, eReceipts, and ePayments.

Nursing and Teacher Trainee Allowances
Mr. Speaker, Government continues to honour the payment of Trainee Allowances, a total amount of GH¢219 million was paid as allowance to 104,000 nursing trainees from January to June 2024. Similarly, a total amount of GH¢216 million has been released as allowance to 67,000 teacher trainees for the 2023/2024 academic year.
Water Resources and Sanitation
Mr. Speaker, Government initiated the implementation of various activities towards achieving effective management and utilisation of water resources as well as improving the general water quality.
Mr. Speaker, works progressed steadily under the “Water for All” agenda. The following projects are completed:
• Ejura Water System;
• Wulensi Water System; and
• Bole Water Systems.
The following are at various stages of completion:
• Wenchi Water Supply Project;
• Sekondi-Takoradi Water Supply Project;
• Keta Water Supply Project;
• Yendi Water Supply Project;
• Tamale Water Supply Project;
• Damongo Water Supply Project;
• Sunyani Water Supply Project; and
• Techiman Water Supply Project.
Government is committed to increasing access to improved sanitation and water supply in Greater Accra and Ashanti Regions. A total of about 40,000 and 24,000 household sanitation facilities were provided in the GAMA and GKMA, respectively benefiting over 400,000 people.
Works and Housing Development
Mr Speaker, our people are burdened with long commutes and mounting stress due to the lack of decent and conveniently located housing. Government in partnership with private developers and the Banks is looking at building high-rise, reasonably priced accommodations within the cities of Accra and Kumasi. In the coming weeks, the Minister for Works and Housing will present the full housing reform package with the Private sector at its core.
Mr. Speaker, Government during the first half of the year continued to implement the National Rental Assistance Scheme, which has benefited 2,074 individuals to date.
Mr. Speaker, under the National Flood Control Programme, over 1,000 kilometers of drains have been newly constructed, rechanneled, and maintained nationwide to reduce the impact of the perennial devastating floods. In addition, preparatory activities towards the construction of houses for households affected by the controlled spillage of the Akosombo Dam were completed following extensive engagement with stakeholders.

CONCLUSION

Mr. Speaker, we stand at the midpoint of 2024, with a strong economic performance and a bright future. This Mid-Year Fiscal Policy Review confirms our unwavering commitment to fiscal consolidation, economic growth and protecting the vulnerable in our nation.
Today, I have outlined the remarkable progress we have made in fiscal consolidation. Our economy is rebounding, evidenced by the stability we have demonstrated. Our progress enables us to be confident about the future.
This is the result of effective implementation of the policies and programmes outlined in the 2024 Budget. Together, we have successfully navigated challenges in the last seven months.
• We continue to stay the course and achieve successes with the IMF-ECF programme;
• We have concluded the external debt restructuring with the OCC, Eurobond Holders and key energy sector IPPs;
• We have kept our promise to DDEP bondholders with coupon payments;
• We have invested in our infrastructure, our people, and our future; and
• We have seized this opportunity to commence reforms in public financial management, financial sector and State Owned Enterprises.
More importantly, we are rebuilding trust, regaining policy credibility, restoring confidence in the economy and raising hope for our businesses and families. We are proving that quick recovery is possible. We are proving that growth with fiscal consolidation is possible..
Mr. Speaker, this mindset of possibility is critical. That is what transforms individuals, families, communities, businesses, and nations. It has been the same mindset that has guided our actions, as a Government, since 2017.
Mr. Speaker, it took a possibility mindset to expand and improve existing strategic social interventions to cater for the vulnerable in our society. That possibility mindset underpinned how we:
• Invested in the Ghana School Feeding Programme (GSFP) to increase beneficiaries from about 1.6 million in 2016 to about 3.8 million beneficiaries this year;
• Increased spending on LEAP from GH¢49 million in 2016 to GH¢423 million today to support 350,000 households; compared with 212,000 households in 2016;
• Increased spending on the NHIS from GH¢1.1 billion in 2016 to GH¢6.5 billion in 2024; and through digitisation, increased active membership from 10.8 million in 2018 to over 17 million people;
• Increased the capitation grant per child from GH¢5.00 in 2016 to GH¢15.00 in 2024;
• Increased the share of the DACF to persons with disabilities by 50 percent.
• doubled the number of student loan recipients, from 30,000 on average per year before 2022) to 58,000 per year currently, by removing the guarantor policy under the Student Loan Trust Fund;
Mr. Speaker, this critical mindset of possibilities, was our guide when we:
• Introduced the Free SHS programme which has increased total enrolment year-on-year from about 800,000 in the 2016/2017 academic year to 1.4 million in the 2023/2024 academic year;
• Introduced the National Rental Assistance Scheme to assist people with rent advance, which has benefited over2,000 people have benefited so far.
• Introduced a medical drone delivery service and on-boarded over 2,700 health facilities;
• Introduced Mobile Money Interoperability (MMI), which has led to Ghana achieving 95 percent access to financial inclusion;
• Introduced the Infrastructure for Poverty Eradication Project (IPEP) which delivered 1,609 completed projects in all 275 Constituencies.
• Introduced the Zongo Development Fund and constructed over 200 infrastructure projects in Zongo communities;
• Introduced the National Entrepreneurship and Innovation Programme (NEIP) to support over 10,000 beneficiaries;
• Introduced the paperless system at the ports and digitalized the operations of the DVLA;
• Introduced the 1D1F initiative to diversify our economy. To-date, 321 1D1F projects are at various stages of completion, with 169 are fully functional and providing over 170,000 direct and indirect jobs;
• Introduced the Planting for Food and Jobs to provide critical inputs and improve food security;
• Instituted the “Year of Return” and “Beyond the Return,” and the ‘December in GH’ initiative to promote tourism;
• Created six (6) new regions to deepen decentralisation and participatory development
Mr. Speaker, that mindset of possibilities has enabled us to:
• Keep the lights;
• Clear all accumulated BTAs up to 2022;
• Constructing 120 courts, with 80 completed, and 150 bungalows for the Judiciary;
• Restore Teacher and Nurses training allowances that were cancelled.
• Protect the deposits of 4.6 million Ghanaians by saving the banking system from collapse.
• Absorb examination fees for all students for BECE and WASSCE examinations;
• Guarantee access to the critical drug for sickle cell patients in Ghana. This is the first of such initiative in Africa;
• Network and digitalize the records of all teaching, regional and district hospitals in Ghana to ensure that referrals are possible without the patient’s folder being physically transported;
• Implement the motor insurance database to enable verification ofinsurance status on mobile phone;
• Passed the Right to Information law;
• Distribute 20,000 LPG cookstoves and about 430,000 Gyapa stoves to promote clean cooking;
Mr. Speaker, the same mindset of possibilities was present when we faced COVID in 2020. We demonstrated compassion to ensure that we:
• Paid public sector workers full wages even when revenues sharply declined;
• Provided free water to all households for a whole year;
• Provided free electricity to lifeline consumers and a 50 percent discount to other consumers for a whole year. It is important to note that between 2009 and 2016, the average annual increase in end-user electricity tariffs was 50 percent per year! Between 2017 and 2023, the average annual increase was 11.1 percent;
• Commenced ‘Agenda 111’ health infrastructure projects;
• Rolled-out the GH¢750 million CAP-BuSS Programme to directly Support Micro, Small and Medium-Sized Enterprises (MSMEs);
• Established a GH¢2 billion Guarantee Facility to support all large enterprises and for job retention;
• Provided cooked meals to 27m vulnerable persons and worked with Faith-Based Organisations to distribute dry food packages to 470,000 families;
Mr. Speaker, we also have demonstrated what this mindset of possibilities can achieve in the infrastructure space. We:
• increased the road network from 78,000km to nearly 100,000km. We have invested significantly in road network expansion and improvement, including the construction of over 2,000km of asphaltic overlay as well as the rehabilitation and maintenance of about 11,674km of roads;
• Completed the Tamale Interchange, Pokuase Interchange, Tema Motorway Interchange. Obetsebi, Flower Pot interchanges and a few others are under construction;
• completed and commissioned Prempeh I International Airport, Yakubu Tali International Airport in Tamale, Phase 1 of the Sunyani Airport rehabilitation;
• restored the Kwame Nkrumah Memorial Park;
• constructed two (2) major fishing harbors in Elmina and James Town in Accra;
• Completed the iconic Tema-Mpakadan railway;
• initiated the construction/rehabilitation of Achimota-Nsawam, Accra-Tema, Kojokrom-Tarkwa, Kojokrom – Manso railway.
• completed six (6) abandoned “Euroget” health sector projects, and three (3) other stalled projects we inherited, including Upper West Regional Hospital, Ga East Municipal Hospital (Kwabenya), Tain District Hospital (Nsawkaw), Tepa Municipal Hospital (Tepa), Twifo-Praso District Hospital, Asante Akim Central District Hospital (Konongo), Fomena Hospital, Bekwai Hospital, and Kumawu Hospital;
• constructed Sea Defense Projects to protect communities in Komenda, Ningo Prampram, Axim, Elmina Anomabo, Keta.
• Constructing Forward Operating Bases to enable the Armed Forces to protect the territorial integrity of our land;
• Constructed 80,000-metric-ton warehouses under One District One Warehouse Initiative;
• constructed about 400 out of the 560 small earth dams in the 5 northern regions in fulfilment of the “One Village, One Dam” promise;
• constructed more than 800 sanitation facilities. As a result, we have increased the proportion of the population with access to sanitary facilities from 33% in 2016 to 80.8%. This has resulted in a virtual elimination of cholera in Ghana.
• completed the University of Ghana Stadium in Legon, built multi-sports facilities at Borteyman for the African Games, as well as increased public astroturf in Ghana from 3 in 2016 to over 150 now;
• extended more rural telephony network by increasing from 78 sites in 2016 to 1008 sites today;
• constructed more public libraries and have increased the total number of public libraries from 61 in 2017 to 115 by 2023;
• added 134.1 MW of renewable energy to our energy mix, from a low of 37.7 in 2016 to 171.8 MW;
Mr. Speaker, we have used this critical mindset of possibilities to reposition our country for the future. Today, we are the proud host of the AfCFTA Secretariat and the Climate Vulnerable Forum Secretariat. In addition, we demonstrated our can-do spirit when we hosted the 13th African Games, the AfDB Annual General Meetings, Afreximbank Annual General Meetings, and just last weekend, the 50th Anniversary of BADEA and the AU Summit. Clearly, we have become the destination of choice for international conferences.
Mr. Speaker, we have also become a regional leader in digitalization and preparing our citizens for the 4th Industrial Revolution.
Mr. Speaker, these investments are historic and unprecedented. They make a significant difference in our lives as a nation. To achieve the core objective of economic transformation, we must keep at it.
Mr. Speaker, we must complete this together. We will continue to:
• Prudently manage public finances and protect the vulnerable;
• support enterprises through our SME GO programme;
• Invest in agriculture to impact inflation, address food imports and preserve forex;
• Invest in Roads that advance trade integration and productivity;
• Improve housing delivery and optimise land use; and
• Promote the digitalisation drive to improve service delivery;
Mr. Speaker, we must do these for the sake of the market women who promote trade. We must do these for the future of school children and young graduates. We must do this to support working parents to build their families. We must do this to enable our businesses set-up and step-out to take advantage of AfCFTA. We must do this to protect and care for widows, aged, and the disadvantaged. We must do these because it is possible. A lot more is possible.
Mr. Speaker, we are using this same mindset of possibilities to confront the economic challenges we have faced. Already, we are seeing results. In this Mid-Year Fiscal Policy Review, we are not seeking additional resources. Rather, we are staying within appropriation. Our progress has informed our proposal to reinstate the fiscal rules on the 5 percent deficit threshold, which we suspended in 2020, in 2025.
Let us continue this path, with hope and the unwavering belief that together, we can achieve greatness. We are building a Ghana that is more inclusive, more sustainable and more transformed. Let us rise to the challenge, let us work together, and let us build a future that is worthy of our highest aspirations.
Mr. Speaker, as I conclude, I want to express immense gratitude to Allah for his grace, mercy and favour. He has continued to be generous to me, my Ministry and our Nation. Even as one of your own, I do not take for granted the support this House continues to give us.
I want to acknowledge my predecessor, Hon. Ken Ofori-Atta, for his leadership and dedication of service in the Ministry of Finance.
Mr. Speaker, I want to also extend a special appreciation to the good people of Karaga Constituency. I know that their overwhelming support has been vital in serving our country and our constituency.
Right Honourable Speaker, let me once again express my sincere appreciation for the opportunity to present the 2024 Mid-Year Fiscal Policy Review to this august House.
Thank you and may the almighty Allah bless us all, bless our homeland Ghana and make us great and strong.