The Budget Statement and Economic Policy

1 The Budget Statement and Economic Policyof the Government of Ghana for the 2022 Financial YearPresented to Parliament on Wednesday, 17th November 2021 By Ken Ofori-Atta Minister for FinanceOn the Authority of His Excellency Nana Addo Dankwa Akufo-Addo, President of The Republic of GhanaTHEME: Building a Sustainable Entrepreneurial Nation: Fiscal Consolidation and Job Creation THE Budget Statement AND Economic Policy of the Government of Ghana for the 2022 FINANCIAL YEAR Presented to Parliament on Wednesday, 17th November 2021 By Ken Ofori-Atta Minister for Finance THEME: Building a Sustainable Entrepreneurial Nation: Fiscal Consolidation and Job Creation on the Authority of His Excellency Nana Addo Dankwa Akufo-Addo, President of The Republic of Ghana To purchase copies of the Statement , please contact the Public Relations Office of the Ministry Ministry of Finance Public Relations Office New Building, Ground Floor, Rooms 001 and 003 P.

2 O. Box MB 40 Accra Ghana The 2021 Budget Statement and Economic Policy of the Government of Ghana is also available on the internet at: i Table of Contents List of Tables .. v List of Figures .. vi Acronyms and Abbreviations .. i INTRODUCTION .. 9 SECTION TWO: GLOBAL Economic DEVELOPMENTS AND OUTLOOK .. 17 Economic Growth .. 17 Inflation .. 18 commodity Prices .. 19 Mid Year 2021 Macroeconomic Developments - ECOWAS Sub-Region .. 20 SECTION THREE: MACROECONOMIC PERFORMANCE FOR JANUARY-SEPTEMBER 2021 .. 30 Overview of Macroeconomic Performance .. 30 Real Sector Developments .. 31 Data source: GSS, 2021 .. 36 Monetary Sector Developments .. 36 Banking Sector Developments .. 38 External Sector Developments .. 40 Fiscal Developments .. 42 Public Debt Developments for 2021 .. 49 Ghana Stock Exchange Performance for 2021 .. 53 Ghana Fixed Income market Performance for 2021.

3 54 Petroleum Receipts and Utilisation in 2021 .. 55 SECTION FOUR: MEDIUM-TERM OBJECTIVES AND TARGETS .. 60 Government s Medium-Term Vision and Objectives .. 60 2022 and Medium-Term Overall Macroeconomic Targets .. 62 2022 and Medium-Term Real Sector Outlook .. 62 Overall GDP Growth .. 62 2021 and Medium-Term Monetary and External Sector Outlook .. 65 2022 AND MEDIUM-TERM FISCAL FRAMEWORK .. 65 Resource Mobilisation and Allocation For 2022 .. 69 Resource Mobilisation for 2022 .. 69 2022 and Medium-Term Debt Management Strategy .. 73 2022 Debt Sustainability Analysis and External Debt 73 ii Update on 2022 international Capital market Funding Programme and Sustainable Development .. 74 Ghana Stock Exchange Outlook for 2022 .. 75 Ghana Fixed Income market (GFIM) Outlook for 76 2022 & Medium-Term Petroleum Receipts and Utilisation .. 76 SECTION FIVE: TRANSFORMING THE ECONOMY BEYOND COVID-19 PANDEMIC.

4 86 GhanaCARES Obaatan Pa Programme .. 86 Local Production of Vaccines .. 94 Addressing the Youth Employment and Skills Challenge .. 99 National Alternative Employment and Livelihood Programme in Mining Sector .. 102 Minerals Income Investment fund (MIIF).. 103 Climate Action and Sustainable Transition to a Low Carbon Economy .. 104 SECTION SIX: SECTORAL DEVELOPMENT AND OUTLOOK .. 111 Administration Sector .. 111 Economic Sector .. 138 Infrastructure Sector .. 167 Social Sector .. 187 Public Safety Sector .. 207 SECTION SEVEN: CONCLUSION .. 221 APPENDICES .. 224 APPENDIX 1A: REAL GDP GROWTH (PERCENT) AT CONSTANT 2013 PRICES .. 224 APPENDIX 1B: GDP AT CONSTANT 2013 PRICES BY Economic ACTIVITY (GH MILLION) .. 225 APPENDIX 1C: GDP AT CURRENT market PRICES BY Economic ACTIVITY (GH MILLION) .. 226 APPENDIX 2A: SUMMARY OF CENTRAL GOVERNMENT OPERATIONS - 2021 .. 227 APPENDIX 2B: Economic CLASSIFICATION OF CENTRAL GOV'T REVENUE - 2021.

5 229 APPENDIX 2C: Economic CLASSIFICATION OF CENTRAL GOV'T EXPENDITURE - 2021 .. 230 APPENDIX 3A: SUMMARY OF CENTRAL GOVERNMENT OPERATIONS - 2022 .. 231 APPENDIX 3B: Economic CLASSIFICATION OF CENTRAL GOV'T REVENUE 2022 .. 233 iii APPENDIX 3C: Economic CLASSIFICATION OF CENTRAL GOV'T EXPENDITURE 2022 .. 234 APPENDIX 4A: MDA EXPENDITURE ALLOCATION (GH ) 2022 .. 235 APPENDIX 4B: SUMMARY OF MDA EXPENDITURE ALLOCATION (GH ) - 2022 .. 248 APPENDIX 4C: SUMMARY OF MDA EXPENDITURE ALLOCATION (GH ) - 2023 .. 254 APPENDIX 4D: SUMMARY OF MDA EXPENDITURE ALLOCATION (GH ) - 2023 .. 256 APPENDIX 5: BREAKDOWN OF PROJECTED ABFA SPENDING (GH ) 2022 271 APPENDIX 6: COST OF GOVERNMENT FLAGSHIP PROGRAMMES (GH ) 2022 .. 272 APPENDIX 7: MDA STAFF ESTABLISHMENTS AND COST (GH ) 2022 .. 273 APPENDIX 8A: 2022 OHLGS & RCCs CEILINGS (OHLGS, GREATER ACCRA, VOLTA, OTI, EASTERN AND CENTRAL RCCs).

6 274 APPENDIX 8B: 2022 MMDAs Budget CEILINGS GREATER ACCRA REGION .. 277 APPENDIX 9A: MONETARY INDICATORS (2019 - 2021).. 285 APPENDIX 9B: DEPOSIT MONEY BANKS CREDIT DEVELOPMENT .. 286 APPENDIX 9C: GHANA S BALANCE OF PAYMENTS (2019-2021) .. 287 APPENDIX 10A: PUBLIC DEBT TO GDP RATIO .. 289 APPENDIX 10B: NEW COMMITMENTS IN 2021 .. 290 APPENDIX 10C: APPROVED LIST OF PROJECTS TO BE FINANCED FROM EXTERNAL NON-CONCESSIONAL LOANS FOR 2022 .. 291 APPENDIX 10D: APPROVED LIST OF PROJECTS TO BE FUNDED FROM CONCESSIONAL BORROWING SOURCES FOR 2022 - 2024 .. 292 APPENDIX 10E: APPROVED LIST OF PUBLIC INVESTMENT PROJECTS FOR THE MEDIUM TERM .. 293 APPENDIX 10F: ESG EXPENDITURE 294 APPENDIX 11A: 2021 NON-TAX REVENUE / INTERNALLY GENERATED FUNDS (NTR/IGF) ACTUALS AND MEDIUM-TERM PROJECTIONS .. 298 APPENDIX 11B: 2021 NON-TAX REVENUE / INTERNALLY GENERATED FUNDS (NTR/IGF) ACTUALS AND 2022 PROJECTIONS (GH '000).

7 299 APPENDIX 11C: MEDIUM-TERM NON-TAX REVENUE / INTERNALLY GENERATED FUNDS (NTR/IGF) PROJECTIONS (GH '000) .. 308 APPENDIX 11D: 2022 INTERNALLY GENERATED FUNDS RETENTION (EXPENDITURE) BREAKDOWN BY MDAS .. 316 APPENDIX 11D: 2022 INTERNALLY GENERATED FUNDS RETENTION (EXPENDITURE) BREAKDOWN BY MDAS .. 320 iv APPENDIX 11E: 2023 INTERNALLY GENERATED FUNDS RETENTION (EXPENDITURE) BREAKDOWN BY MDAS .. 322 APPENDIX 11F: 2024 INTERNALLY GENERATED FUNDS RETENTION (EXPENDITURE) BREAKDOWN BY MDAS .. 327 APPENDIX 11G: 2025 INTERNALLY GENERATED FUNDS RETENTION (EXPENDITURE) BREAKDOWN BY MDAS .. 331 APPENDIX 11G: 2025 INTERNALLY GENERATED FUNDS RETENTION (EXPENDITURE) BREAKDOWN BY MDAS .. 332 APPENDIX 12: STATUS OF UTILISATION OF 2021 COVID-19 Budget (GH M) JAN -SEPTEMBER 2021 .. 335 APPENDIX 13: GOVERNMENT MEASURES TO IMPLEMENT RECOMMENDATIONS OF PARLIAMENT IN RESPECT OF THE REPORT OF THE AUDITOR-GENERAL.

8 336 v List of Tables Table 1: ECOWAS Growth Rates (% Annual) .. 20 Table 2: ECOWAS Consumer Price Inflation (annual averages).. 21 Table 3: ECOWAS Rationalized Convergence Criteria (June 2021) .. 25 Table 4: GDP Growth in the Agriculture Sector and Subsectors .. 33 Table 5: GDP Growth in the Industry Sector and Subsectors .. 34 Table 6: GDP Growth in the Services Sector and Subsectors .. 35 Table 7: Summary of Fiscal Performance, January-September, 2021 .. 43 Table 8: Revenue Performance, January-September, 2021 .. 44 Table 9: Expenditure Performance, January-September, 2021 .. 46 Table 10: Financing, January-September .. 48 Table 11: Transaction Details .. 51 Table 12: Ghana s Current Credit Ratings .. 52 Table 13: Total Crude Oil Production (Jan-Sept 2021) in Barrels .. 55 Table 14: Petroleum Receipts from Jan-Sept 2021 Liftings .. 55 Table 15: Petroleum Receipts from all Sources (Jan-Sept 2021).

9 56 Table 16: Analysis of Petroleum Receipts (US$Mn) .. 57 Table 17: Distribution of Petroleum Receipts Jan-Sept, 2021 .. 58 Table 18: ABFA Utilization by Priority Area for Jan-Sep 2021 in GH Mn) .. 59 Table 19; Oil and Non-Oil GDP Growth Projection in Ghana, 2021-2025 (Percent) 63 Table 20: Summary of Central Government Fiscal Operations (2021-2025) .. 67 Table 21: Sources of Petroleum Revenue in 2022 & Medium-term .. 77 Table 22: Revenue Distribution in the Medium-Term (GNPC & GOG) .. 77 Table 23: Regional Distribution of 1D1F Projects .. 152 Table 24: List of Towns and Communities Covered under the Asphaltic Overlay Programme in 2021 .. 174 Table 25: Ongoing Road Projects .. 175 Table 26: Projects under the MPSA .. 177 Table 27: Status of Fish Landing Sites under Construction .. 184 Table 28: COVID-19 Update as at 5th November, 2021 .. 202 Table 29: Summary of Vaccines Received, Feb- 8 Nov 2021.

10 203 vi List of Figures Figure 1: Real GDP Growth (Oil and Non-Oil) .. 32 Figure 2: GDP Growth in the Services Sector and Subsectors .. 36 Figure 3: Fiscal Outlook for 2021 .. 49 Figure 4: Public Debt Stock (in GH Billion) .. 50 Figure 5: Ghana Stock Exchange Equity market .. 53 Figure 6: Volume Traded on the GFIM (Million) .. 54 Figure 7: Petroleum Receipts from all Sources (Jan-Sept 2021).. 57 Figure 8: Sectoral Real GDP Growth, 2021-2025 (percent) .. 64 Figure 9: Sector Distribution of GDP, 2021-2025 .. 64 Figure 10: Resource Mobilisation for 2022 (in GH Million) .. 71 Figure 11: Resource Allocation for 2022 (in GH Million) .. 72 Building a Sustainable Entrepreneurial Nation: Fiscal Consolidation and Job Creation i Acronyms and Abbreviations 1D1F One-District-One-Factory AASU All Africa Students Union ABFA Annual Budget Funding Amount ACCORD African Centre for the Constructive Resolution of Disputes ADC Accra Digital Centre ADR Alternative Dispute Resolution Afawa Affirmative Finance Action for Women in Africa AfCFTA African Continental Free Trade Area AfDB African Development Bank AFJ Aquaculture for Food and Jobs AGI Association of Ghana Industries AGOA Africa Growth and Opportunities Act AITI-KACE Advance Information Technology Institute-Kofi Annan Centre of Excellence AML Anti-Money Laundering AML/CFT Anti-Money Laundering/Combating the Financing of Terrorism AML/TF&P Against Money Laundering, Terrorist Financing and the Proliferation API Active Pharmaceutical Ingredients APR Annual Progress Report ARAP Anti-Corruption.