The Budget Statement and Economic Policy

1 REPUBLIC OF GHANA. The Budget Statement and Economic Policy of the Government of Ghana for the 2021 Financial Year Presented to Parliament on Friday, 12th March, 2021. By Osei Kyei-Mensah-Bonsu, MP for Suame Constituency, Minister for Parliamentary Affairs, Majority Leader & Leader of Government Business THEME: Economic Revitalisation through Completion, Consolidation & Continuity W N Y A W HI BUDG ET ! On the Authority of His Excellency Nana Addo Dankwa Akufo-Addo, President of The Republic of Ghana Transforming Ghana Beyond Aid Stay Safe: Protect yourself and others Observe the COVID-19 Health and Safety Protocols Get Vaccinated The Budget Statement and Economic Policy of the Government of Ghana for the 2021 FINANCIAL YEAR.

2 Presented to Parliament on Friday, 12th March, 2021. By Osei Kyei-Mensah-Bonsu, MP for Suame Constituency. Minister for Parliamentary Affairs, Majority Leader & Leader of Government Business THEME: Economic Revitalisation through Completion, Consolidation & Continuity W N YA W HI Budget ! ON THE AUTHORITY OF. HIS EXCELLENCY NANA ADDO DANKWA AKUFO-ADDO, PRESIDENT OF THE REPUBLIC OF GHANA. Economic Revitalisation through Completion, Consolidation & Continuity . Table of Contents Acronyms and Abbreviations .. iv List of Tables .. xiii SECTION ONE: INTRODUCTION .. 1. SECTION TWO: GLOBAL Economic DEVELOPMENTS AND OUTLOOK .. 9. Growth .. 9. Inflation .. 10. Commodity Prices.

3 10. African Continental Free Trade Area (AfCFTA) .. 11. Developments in the ECOWAS Sub-Region .. 12. Performance on Rationalized ECOWAS Convergence Criteria .. 13. Ghana performance of the Rationalized Macroeconomic Convergence Criteria .. 14. Implications of Global Developments for Ghana's Economy .. 16. SECTION THREE: MACROECONOMIC PERFORMANCE FOR JANUARY- DECEMBER 17. Overview of Macroeconomic Performance .. 17. Monetary Developments .. 20. External Sector .. 23. Fiscal 24. Petroleum Receipts and Utilisation in 2020 .. 30. Public Debt Developments for 2020 .. 36. SECTION FOUR: MEDIUM-TERM OBJECTIVES AND TARGETS .. 48. SECTION FIVE: COVID-19 IMPACT AND MITIGATING MEASURES and the GhanaCARES (OBAATAN PA) PROGRAMME.

4 70. Impact on the Global Economy .. 70. SECTION SIX: SECTORAL DEVELOPMENT AND OUTLOOK .. 89. Introduction .. 89. MDA Sector Performance and Outlook .. 89. Administration Sector .. 89. Economic Sector .. 114. Infrastructure Sector .. 144. Social Sector .. 166. Public Safety Sector .. 183. SECTION SEVEN: CONCLUSION .. 198. APPENDICES .. 201. i Economic Revitalisation through Completion, Consolidation & Continuity . APPENDIX 1A: GROWTH RATES OF GROSS DOMESTIC PRODUCT AT. CONSTANT 2013 PRICES (PERCENT) .. 201. Appendix 1B: Gross Domestic Product (GDP) at Constant 2013 Prices by Economic Activity (GH Million) .. 202. APPENDIX 1C: GROSS DOMESTIC PRODUCT (GDP) AT CURRENT MARKET.

5 PRICES BY Economic ACTIVITY (GH MILLION) .. 203. APPENDIX 2A: SUMMARY OF CENTRAL GOVERNMENT OPERATIONS - 2020 .. 204. APPENDIX 2B: Economic CLASSIFICATION OF CENTRAL GOV'T REVENUE - 2020 .. 206. APPENDIX 2C: Economic CLASSIFICATION OF CENTRAL GOV'T. EXPENDITURE - 2020 .. 207. APPENDIX 3A: SUMMARY OF CENTRAL GOVERNMENT OPERATIONS - 2021 .. 208. APPENDIX 3B: Economic CLASSIFICATION OF CENTRAL GOV'T REVENUE - 2021 .. 210. APPENDIX 4A: MDA EXPENDITURE ALLOCATION (GH ) 212. APPENDIX 4B: SUMMARY OF MDA EXPENDITURE ALLOCATION (GH ) - 2022 .. 228. APPENDIX 4C: SUMMARY OF MDA EXPENDITURE ALLOCATION (GH ) - 2023 .. 232. APPENDIX 4D: SUMMARY OF MDA EXPENDITURE ALLOCATION (GH ) - 2024.

6 236. APPENDIX 5: BREAKDOWN OF PROJECTED ABFA SPENDING (GH ) 2021 240. APPENDIX 6: COST OF GOVERNMENT FLAGSHIP PROGRAMMES (GH ) . 2021 .. 241. APPENDIX 7: MDA STAFF ESTABLISHMENTS AND COST (GH ) 2021 .. 242. APPENDIX 8A: SOURCES OF GROWTH IN TOTAL LIQUIDITY (M2+) (MILLIONS. OF GHANA CEDIS UNLESS OTHERWISE STATED) .. 243. APPENDIX 8B: DEPOSIT MONEY BANKS CREDIT DEVELOPMENTS .. 244. APPENDIX 8C: GHANA'S BALANCE OF PAYMENTS (2017-2020) .. 245. APPENDIX 8D: INTEREST RATES .. 246. APPENDIX 9: DISTRIBUTION OF JANUARY-DECEMBER 2020 PETROLEUM. RECEIPTS .. 247. APPENDIX 10A: PUBLIC DEBT TO GDP RATIO .. 248. APPENDIX 10B: NEW COMMITMENTS IN 2020 .. 249. APPENDIX 10C: APPROVED PROJECT/PROGRAMME LIST TO BE.

7 CONTRACTED FROM CONCESSIONAL AND NON-CONCESSIONAL EXTERNAL. LOANS FOR 2021 AND MEDIUM TERM .. 251. ii Economic Revitalisation through Completion, Consolidation & Continuity . APPENDIX 11A: 2020 ACTUALS AND MEDIUM TERM NON-TAX TAX REVENUE /. INTERNALLY GENERATED FUNDS (NTR/IGF) ESTIMATES BY MAJOR. CATEGORY .. 253. APPENDIX 11B: 2020 NON-TAX REVENUE ACTUALS AND 2021 PROJECTIONS. BY MDA (GH 000) .. 254. APPENDIX 11C: 2021 INTERNALLY GENERATED FUNDS RETENTION. (EXPENDITURE) BREAKDOWN BY MDA (GH ).. 260. APPENDIX 11D: 2022 INTERNALLY GENERATED FUNDS RETENTION. (EXPENDITURE) BREAKDOWN BY MDA (GH ).. 264. APPENDIX 11E: 2023 INTERNALLY GENERATED FUNDS RETENTION. (EXPENDITURE) BREAKDOWN BY MDA (GH ).

8 267. APPENDIX 11F: 2024 INTERNALLY GENERATED FUNDS RETENTION. (EXPENDITURE) BREAKDOWN BY MDA (GH ).. 270. APPENDIX 12A: STATUS OF COVID-19 ALLEVIATION PROGRAMME - CAP 1 273. APPENDIX 12B: PERFORMANCE SUMMARY BY FUNDING SOURCES .. 274. iii Economic Revitalisation through Completion, Consolidation & Continuity . ACRONYMS AND ABBREVIATIONS. 1D1F One District One Factory 1V1D One Village One Dam AAM USED A. A. Menka University for Skills Training and Entrepreneurial Development ABFA Annual Budget Funding Amount ABRP Annual Borrowing and Recovery Plan ADR Alternate Dispute Resolution AfCFTA African Continental Free Trade Area AfDB African Development Bank AGI Association of Ghana Industries AIDS Acquired Immune Deficiency Syndrome AMCs Asset Management Companies AML Anti-Money Laundering ANS Air Navigation Services API Active Pharmaceutical Ingredients APR Annual Progress Report ARAP Anti-Corruption Rule of Law and Accountability Programme ART Antiretroviral Therapy ATO Aviation Training Organization AU African Union AWS Amazon Web Services BDS Business Development

9 Services BECE Basic Education Certificate Examination BGL Bureau of Ghana Languages BIAT Boosting Intra-African Trade BoG Bank of Ghana BOP Balance of Payments BR Benchmark Revenue BRCs Business Resource Centres BRR Business Regulatory Reforms CAP Coronavirus Alleviation Programme CAP BuSS Coronavirus Alleviation Programme Business Support Scheme CAPI Carried and Participating Interest CAPS Centralised Applications Processing system CAR Capital Adequacy Ratio CARES COVID-19 Alleviation, Revitalisation and Enterprise Support Programme CBT Competency Based Training CCP Common Core Programme CD Chieftaincy Declaration CDC Centre for Disease Control CDPP Centralised Digital Payment Platform CDVTIs Community Development Vocational and Technical Institute iv Economic Revitalisation through Completion, Consolidation & Continuity.

10 CET Common External Tariff CHRAJ Commission on Human Rights and Administrative Justice CIS Canoe Identification system CISA Certified Information system Auditor CLASS Complementary Livelihood Asset Support Scheme CLFZs Child Labour Free Zones CLTS Community-Led Total Sanitation CMO Commodity Markets Outlook CMS Cocoa Management system CNS Communication, Navigation and Surveillance CODAPEC Cocoa Diseases and Pests Control Programme CPA Commonwealth Parliamentary Association CPI Consumer Price Index CRAs Credit Risk Assessments CRIG Cocoa Research Institute of Ghana CRM Cylinder Recirculation Model CRR Cash Reserve Requirement CS Credit Suisse CSA Climate Smart Agriculture CSD Coffee and Shea Division CSIR Council for Scientific and Industrial Research CSPG Cross Sectoral Planning Groups CSSVD Cocoa Swollen Shoot Virus Disease CTD Convention Travel Documents DACF District Assemblies Common Fund DBG Development Bank for Ghana DCRA Domestic Credit Rating Agency DDROs District Registration Review Officers DFI