Finance Minister, Seth Terkper, has informed parliament that Ghana's economy is beginning to adjust to the fiscal and monetary measures with positive changes.
According to him, "given that these consolidation measures are promulgated within a multi-year framework their full effect will take time to fully materialise."
The minister said this today on the floor of Parliament when he presented an urgent policy statement on the Ghanaian economy.
The statement touched on recent economic development and measures, macroeconomic program for 2014 as well as medium-term fiscal measures being implemented by government.
"The statement is dedicated to the consideration efforts of government and demonstrates cumulative policy consistency of all measures implementation since 2013 to bring the country's fiscal situation under control," he said.
He said government as part of efforts to improve revenue performance and support the fiscal consolidation efforts in July 2013, introduced some revenue measures which yielded about GH¢ 168 million in 2013 and are expected to yield GH¢ 630 million representing 0.6 per cent of Gross Domestic Product (GDP) this year.
He noted that tax measures introduced to strengthen the revenue and expenditure regimes were expected to yield additional revenue of not less than GH¢ 700 million or 0.7 per cent of GDP in this year.
He said the ministry had initiated a process to change the upfront exemptions regimes to a credit and refund system to minimise abuse, tax evasions and avoidance, adding that the Ghana Investment Promotions Centre (GIPC) Act would be reviewed to ensure consistency with government's exemption.
He also reiterated that Ghana remained a favourable investment destination despite the turbulence the economy was currently facing.
He said the "BoG measures are designed to ensure transparency, streamline activities and reduce leakages in the foreign exchange market, address anti-money laundering issues and promote the use of the cedi as legal tender."
Source: ISD (Gilbert Ankrah)