What the private sector expects from the 2017 budget
Private sector players are hopeful the government will use the 2017 budget to announce innovative policies that will help inspire business confidence.
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From real estate developers to financial consultants, the players mentioned tax reliefs, increase in agricultural investment and low cost finance as some of the measures they would like to see captured in the budget due to be presented on Thursday, March 2.
“We want to see a clear strategy on how government will support businesses in the country,” the Chief Executive Officer (CEO) of Ghana National Chamber of Commerce (GNCC), Mr Mark Badu-Aboagye, said in an interview with the Graphic Business in Accra.
“The current conditions under which businesses borrow from banks for their commercial activities are negatively impacting on their profitability,” he added.
After years of relying on foreign imports to supplement local production, Mr Badu-Aboagye said he expected the government’s maiden budget to focus on revamping the agriculture sector.
“There is the need for a paradigm shift if we really want to ensure food security and accelerated economic development for the country,” he stressed.
Fast-track growth
For his part, the Country Director of the Institute of Financial Consultants (USA & Canada), Mr Daniel Amateye Anim, said he expected the March 2 budget to become the foundation that would help fast -track the economic development of the country.
“If this government is committed to the one district, one factory project, they will link it to agriculture.”
“We expect the Finance Minister to clearly explain how the government will attract investment into the agriculture sector,” he said.
He indicated that over the years, the contribution of agriculture to the country’s Gross Domestic Product (GDP) has not been encouraging hence the need for the government to scale-up investment in the sector.
“Another area which one wants to see more in-depth analysis in terms of resource allocation is the Ministry of Trade because the government says it is going to revolutionise the industrial sector of the country,” Mr Anim, who is the immediate past CEO of the Institute of Certified Economists of Ghana (ICEG), said.
He also stressed the need for the government to clearly state how it was going to address fiscal deficit in order to restore policy credibility and transparency as well as policy clarity in the country’s economic development.
Real estate tax
For his part, the General Secretary of the Ghana Real Estate Developers Association (GREDA), Mr Samuel Amegayibor, reiterated the need for the government to use the 2017 budget to scrap the five per cent Value Added Tax (VAT) imposed on real estate sales. That, he said, would help address most of the challenges facing the real estate industry in the country.
“We are urging the government to work quickly to remove the VAT, which was slapped on real estate.
“If the removal of the tax will not take effect soon, at least, it should be mentioned in the budget for us to know that there is something going on,” Mr Amegayibor indicated.