Government targets 9% budget deficit of GDP

The Government of Ghana has resolved to tackle the main fiscal challenges that have threatened the economy.

This includes periodic review of fuel prices; identify credible sources for financing, infrastructure projects among others.

The Finance Minister Seth Terkper announced in Parliament on Tuesday as he read the 2013 budget statement.

According to the Finance Minister, Government is also targeting an overall GDP of 8.9 percent for the year 2013.

The Government has also announced plans to increase taxes as well as introduce new taxes to raise money to fund plans for the country.

According to the Finance Minister, the tax increases would help government expand its social intervention programmes.

The current registration threshold for the Value Added Tax which is GH¢90,000 will be increased to GH¢120,000.

He added that the tax system in the country had not been changed for a long time even though situations and conditions in the country and around the world had changed.

Seth Terkper also said the Bank of Ghana will also strengthen its macroeconomic stability policies to cushion the cedi and sustain single digit inflation.