Key Highlights of 2017 Budget

MACROECONOMIC PERFORMANCE FOR 2016

Overall real GDP 3.6% End-period inflation 15.4%

Overall budget deficit on cash basis – 8.7% of GDP, on commitment basis, 10.3%

Gross Foreign Reserve (Import Cover) 2.8 Months

2016 Sector Growth Performance

Agriculture 3.6%

Industry (1.2)%

Services 5.9%

Exchange Rate Developments – 2016

Cedi/Dollar depreciation- 9.6%

Cedi / Euro depreciation 5.3%

Cedi/Pound appreciation 10.0%

Interest Rate Development – 2016

91- day T-Bills 16.8%

182 – day T-Bills 18.5%

POLICY INITIATIVES

Some Tax Incentives

abolish the 1 percent

Special Import Levy;

abolish the 17.5 percent VAT/NHIL on financial services;

abolish the 17.5 percent VAT/NHIL on selected imported medicines, that are not produced locally;

abolish the 17.5 percent VAT/NHIL on domestic airline tickets;

abolish the 5 percent VAT/NHIL on Real Estate sales;

abolish excise duty on petroleum

reduce special petroleum tax rate from 17.5 percent to 15 percent;

abolish duty on the importation of spare parts;

abolish levies imposed on kayayei by local authorities;

reduce National Electrification Scheme Levy from 5 percent to 3 percent;

reduce Public Lighting Levy from 5 percent to 2 percent;

abolish levies imposed on religious institutions by local authorities;

Other Initiatives

Under the “One Village One Dam” campaign, small to medium scale irrigation schemes to be identified and rehabilitated.

Ministry of Trade to implement the “One District One Factory” initiative to ensure an even spatial spread of industries.

Ministry of Education to commence implementation of free secondary education in September for the 2017/18 academic year.

275 constituencies to be allocated the equivalent of US$1 million annually under the Infrastructure for Poverty Eradication Programme (IPEP)