2005 budget to focus on Job Creation

The major focus of the 2005 national budget, which will be ready for presentation to Parliament in the first week of March, will be to stimulate economic growth and the creation of job avenues. It will also consider ways of greatly improving revenue generation through tax and property rate collection.

Mr Kwadwo Baah-Wiredu, minister of finance and economic planning yesterday told the paper that vigorous work on the drafting of the budget was underway, and called for inputs from all stakeholders.

According to Mr Baah-Wiredu, revenue generation was one of the critical areas where the budget would be focused.

Mr Baah-Wiredu said ?we will look at the necessary assistance that need to be given to the revenue collection agencies as well as the metropolitan, municipal and district assemblies to focus more on raking in money through the collection of property rates.?

One challenge that the new minister is expected to face during his term of office is the effect of the deregulation of the petroleum sector as the Government attempts to completely wash its hands off the importation and pricing of petroleum products.

Against this background, the Government has decided to accelerate the programme for the deregulation of the petroleum sector to promote competition in the petroleum products marketing by providing hope for new entrants.

In the history of this country, any upward movement in the price of petroleum products has had adverse effects on the macro economic indicators as inflation and interest rates go up.

Analysts have commended the Government for bringing an appreciable level of stability in the economy, but believe that the taxes on industries and institutions were too heavy and called for a review.

They have mentioned the reconstruction levy of 7.5 per cent and the withholding tax as some of the areas that were affecting their growth