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Ken Ofori-Atta’s letter to Parliament on 2022 budget modifications.



Ken Ofori-Atta’s letter to Parliament on 2022 budget modifications. 56

Ken Ofori-Atta, Finance Minister disclosed at a press conference on Monday, December 6, 2021, that he has written to the Speaker of Parliament, Alban Bagbin with details of some amendments the government has made to the 2022 Budget Statement and Fiscal Policy following concerns raised by various stakeholders.

“On behalf of the President I have written to the Right Honorable Speaker of Parliament with details of amendments in response to emerging concerns by all stakeholders including the Minority caucus,” he told the media.

“We will work with the relevant Committees of Parliament to reflect these modifications in the 2022 Budget, as is the usual practice before the Appropriation Bill is passed. Any other concerns which may emerge shall be addressed during the discussions of the estimates by the Committees, as has been the tradition,” he added.

In the letter addressed to the Speaker and intercepted by GhanaWeb, Ken Ofori-Atta said:

“After consulting with the President and also to respect his wish that these modifications address the concerns of the Minority Caucus and various other stakeholders, whilst ensuring that a deficit target of 7.4% and a positive primary balance be maintained in view of the nation’s determination to reduce our debt levels, raise adequate revenue to promote youth employment, build infrastructure (especially our roads) and fund other government obligations, including the flagship programmes.”

He continued that the modifications that the government intended to capture in the 2022 budget statement included the following:

  1. Agyapa Royalties deal: We shall amend paragraphs 442 and 443 to take out references to mineral royalties collateralization. It is important to note that, any reference to Agyapa was for informational purposes, and as such was not reflected in the fiscal framework.
  2. Tidal Waves disaster: In respect of the unfortunate tidal waves which rendered about 3,000 people homeless in Keta, we shall make the necessary budgetary allocations of at least GHC10 million to complete the Feasibility and Engineering studies for the coastal communities adversely affected. We will broaden the scope of the study to consider a more comprehensive solution to protect Ghana’s 540 Km of coastline, including the 149 Km between Aflao and Prampram. Meanwhile, NADMO has responded to the humanitarian crisis created by the tidal waves on the Keta coastline.
  3. Aker Energy transaction: we shall amend paragraph 829 of the 2022 Budget on the acquisition of a stake from Aker Energy and AGM Petroleum by GNPC, to reflect the resolution of Parliament dated 6th July, 2021 that “the terms and conditions of the loan for the acquisition of the shares shall be brought to Parliament for consideration pursuant to article 181 of the Constitution.
  4. Benchmark values: we shall avert any hardships to importers and consumers while safeguarding the interest of local manufacturing industries to secure and expand jobs for our people. This administrative exercise, which reviewed 43 out of 81 line items, has the objective to promote local manufacturing and the 1D1F policy, including the assembling of vehicles. It is important to note that this adjustment affects only 11.4% of the total CIF value, of which 50% is for vehicles. From our analysis, the potential increase in retail prices should be relatively insignificant and therefore inflation should be muted. The YouStart policy will also support our accomplished Traders with appropriate training and access to capital to become Manufacturers in order to expand the industrial base of our society and our import substitution strategy, in line with our Ghana Beyond Aid agenda.

Despite the approval of the 2022 budget, the Finance Minister states the revisions made are in fulfilment of a promise “to respond to the concerns of the Minority after further consultations with stakeholders, which I have now done.”

Read below the full letter of Ken Ofori-Atta to Alban Bagbin: