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.

2 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. 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.

3 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.

4 40 Fiscal Developments .. 42 Public Debt Developments for 2021 .. 49 Ghana Stock Exchange Performance for 2021 .. 53 Ghana Fixed Income Market Performance for 2021 .. 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.

5 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 .. 86 GhanaCARES Obaatan Pa Programme.

6 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.

7 224 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 .. 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.

8 233 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.

9 273 APPENDIX 8A: 2022 OHLGS & RCCs CEILINGS (OHLGS, GREATER ACCRA, VOLTA, OTI, EASTERN AND CENTRAL RCCs) .. 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.

10 291 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).. 299 APPENDIX 11C: MEDIUM-TERM NON-TAX REVENUE / INTERNALLY GENERATED FUNDS (NTR/IGF) PROJECTIONS (GH '000).