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March 11, 2016
Budget recorded deficit in first nine
months
Accra, Nov. 16, GNA - Government recorded an increase in
budget deficit of 5,059.5 billion cedis for the first nine
month of 2006 as against 3,643.0 billion cedis in the
corresponding period of 2005.
Mr Kwadwo Baah-Wiredu, Finance and Economic Planning
Minister, who announced this in the 2007 Budget Statement
presented to Parliament on Thursday said the domestic
primary balance also recorded a deficit of 3,739.7 billion
cedis (3.3 per cent of GDP) compared with a surplus of 653.3
billion cedis (0.7 per cent of GDP) in the same period of
2005.
Providing the fiscal details, he said the provisional fiscal
outturn for January to September 2006 showed total receipts
of 31,929.7 billion cedis, against 23,723.7 billion cedis
registered for the same period during 2005.
"This shows a 34.6 per cent increase over the outturn for
the corresponding period of 2005.
"The relatively high outturn of total receipts recorded is
mainly due to receipts from the Multilateral Debt Relief
Initiative (MDRI) totalling 1,826.4 billion cedis."
He said for year 2006 as a whole, total receipts were
projected at 41,357.1 billion cedis, showing an outturn of
4.9 per cent below the budget estimate of 43,468.2 billion
cedis.
"Domestic revenue as at the end of September 2006 was
16,696.3 billion cedis, 7.1 per cent lower than the
programmed amount of 17,963.6 billion cedis.
"This outturn was, however, 9.6 per cent higher than the
amount of ¢15,235.1 billion recorded for the same period in
2005," Mr Baah-Wiredu said.
The entire year of 2006, however, has projected domestic
revenue of 25,421.5 billion cedis as against a budget
estimate of 26,438.8 billion cedis.
He said of the domestic revenue, the outturn for tax revenue
up to the end September 2006 was 15,424.6 billion cedis,
against a programmed target of 16,408.6 billion cedis.
The performance of tax revenue, Mr Baah-Wiredu said,
indicated an increase of 11.3 per cent over the performance
for the corresponding period in 2005.
Direct taxes, which comprise personal, self-employed,
company taxes and others such as airport tax amounted to
¢4,699.4 billion, being 10.2 per cent higher than the
outturn for the same period in 2005.
He said indirect taxes for the period totalled 7,562.9
billion cedis against a programmed target of 8,533.9 billion
cedis.
He said in spite of the under performance, the outturn
indicated an increase of 11.6 per cent over the outturn for
the corresponding period in 2005.
Domestic VAT for the first three quarters of the year
amounted to 1,591.4 billion cedis, against a programmed
target of 1,607.5 billion cedis showing an outturn of 27.8
per cent higher than that for the corresponding period in
2005.
Giving the current trends, Mr Baah-Wiredu said the 2006
Budget estimate for Domestic VAT would be achieved by the
end of the year.
The outturn for International Trade Taxes for the period
under review, however, recorded 3,162.2 billion cedis,
representing a shortfall of about 3.2 per cent of the
programmed amount.
The amount was, however, 12.5 per cent higher than the
outturn for the same period in 2005.
International trade taxes are projected to be 318.0 billion
cedis higher than the projected amount of 4,858.5 billion
cedis indicated in the 2006 Budget estimate.
Of the total international trade taxes, Export Duty, which
was mainly cocoa duties for the period under review,
amounted to 328 billion cedis, representing a 3.1 per cent
increase over the outturn for the same period in 2005.
Mr Baah-Wiredu said due to improved performance of cocoa, it
was projected that by the end of the year export duty would
amount to 1,246.3 billion cedis.
Mr Baah-Wiredu said import VAT for the period under review
totalled 2,404.5 billion cedis, about 4.9 per cent higher
than the outturn for the corresponding period in 2005.
He said the National Health Insurance Levy (NHIL) amounted
to 785.4 billion cedis, 28.4 per cent lower than the
programmed target of 1,096.5 billion cedis and 9.8 per cent
lower than the outturn for the same period in 2005.
Mr Baah-Wiredu said receipts from Non-Tax Revenue for the
period under review, amounted to 486.3 billion cedis,
exceeding the Budget target by 27.9 billion cedis.
This outturn was, however, 5.0 per cent lower than the
outturn for the same period in 2005 adding, "Non-Tax revenue
receipts are, nonetheless, expected to meet the 2006 Budget
projection of 711 billion cedis".
GNA
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