Date: March 5, 2013, 10:37 am


CITIZENS EXPECTATIONS OF THE 2013 GHANA GOVERNMENT BUDGET


MACROECONOMIC OUTLOOK

Gross Domestic Product

The growth target for 2013 should be pegged on sectors with greatest potential to create jobs and not only in Oil and Gas sector.

It is expected that clearly defined policies on addressing the level of unemployment with a focus on investment in areas related to women such as the food crop sectors in agriculture, agri-businesses, trade, distribution and catering, craft and related trade.

Fuel Subsidies

It is expected that in the 2013 national budget, Government will lay out clearly defined policies and programmes that will aim at mitigating the potential hardships emanating from the partial reduction of fuel subsidies.

Taxes

The presumptive tax should be applied on those businesses with turnover within the range of GH₵ 11,000 to GH₵ 120,000. In the 2013 fiscal year, Government should charge taxes to businesses with turnover in the range of GH₵ 1000 – GH₵ 10,000 based on assessment of activities.

EDUCATION SECTOR

Basic Education Resource Allocation

Given the declining trend in expenditure allocation to basic education since 2008, the 2013 education sector budgetary allocation is expected to be scaled up to bridge the funding gap to the respective stages of the basic education sub-sector to improve outcomes.

Resource Allocation to Capitation Grant

The Capitation Grant coverage has to be expanded and well resourced in the 2013 education sector budget to specifically target the School Performance Appraisal Meetings (SPAM) and the in-service training initiatives at school level as well as provide for reading materials for the Kindergarten stage on account of the inherent potential that this could have as a catalyst to effect the desired changes in performance outcomes. 

School Feeding Programme

The 2013 budget is expected to develop a mechanism for proper targeting especially by ensuring that most of the schools in the deprived areas benefit from this programme. It is therefore expected that there will be an increase in the amount allocated which should be commensurate to the number of beneficiaries to provide the right nourishment to pupils.

HEALTH SECTOR

Sector Resource Allocation

The investment component of the 2013 budgetary allocation to the health sector is expected to be increased above the 2012 allocation of 6.6 per cent of total health expenditure.

Primary Health Care

The 2012 budget for Primary Health Care (PHC) expenditure as a percentage of total health allocation was 49% decreasing by about 1.3 percent over that of 2011. In the 2013 budget, it is expected that the PHC allocation increases appreciably to meet the critical health needs of people particularly the poor.

Total Spending to Health Sector

The 2012 total government spending to the health sector was 10.4% increasing by 2.1% above that of 2011. It is expected that the 2013 domestic budget be increased to meet the Abuja declaration which calls for at least 15% of total domestic budget allocation to be channelled towards health spending.

WATER SECTOR

Sector Resource Allocation

Given the donor dependent nature of the water sector in Ghana, we expect that Government, in the 2013 budget statement, should proffer alternative ways of generating revenue to support the sector, particularly the increased allocation of the percentage share of domestic revenue to the sector

SOCIAL PROTECTION

Trend in Budgetary Allocation

We expect an increase in allocation to the newly formed Ministry of Gender, Children and Social Protection to enable it to improve its service delivery in view of the new mandate for social protection.

Livelihood Empowerment Against Poverty (LEAP)

The coverage level of 65000 households in 2011 and 2012 is inadequate given a national household size of about 5 million and a poverty headcount of 28.5 per cent. Government is expected to increase coverage to at least 5 per cent from the low level of 0.8 per cent in 2010 and 1.2 per cent in 2011 and 2012

 



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