Finance and Economic Planning minister, Mr. Seth Terkper, is presenting government’s 2014 budget and financial statement to Parliament.

The government has christened the budget a transformational one designed to generate growth and create jobs.

Myjoyonline.com brings you live-updates of the highlights of the budget.

As a result of sound economic policies GDP has doubled in nominal terms

Positive growth rates for all sub sectors have been achieved 

Ghana is among three African countries that have attracted the highest foreign direct investments; our record reflects the high investor confidence in the economy.

In August the bond issue was over subscribed.

Government is pursing accelerated development targets.

This is a truly transformational budget which highlights policies that will create jobs and expand the economy.

Single Spine Salary Structure (SSS) imposing severe strain on the economy but government, employers and organized labour are continuing negotiations

We believe we are of one mind and therefore we are determined public sector wages will not put strain on budget.

To demonstrate leadership, the president, his vice and appointees, and ministers have decided to take a voluntary 10% pay cut in 2014.

The amount to be deducted will be channeled to maternal health.

Last week Parliament passed a new VAT Act that increases the rate to 15 per cent which includes the 2.5 NHIL.

In addition to stabilising the economy, the 2.5 VAT will be applied to expanding infrastruture.

Amendments to be approved by the House:

Special import levy should close in 2014 instead of 2015

Agric and fishing imputs, medical supplies including condoms, will be exempt from special levies.

Dedication of VAT money to infrastructural development should pass through the normal appropriation process.

President is committed to enhancing the living standards of the people by creating decent jobs for them.

The president is working to enhance transparent governnance.

Consistent with the medium-term objective, government is targeting a growth rate of 8 per cent for the year.

The performance of the global economy remained low for the first half of 2013. The impact of global economy on the local economy diverse.

Happenings in the middle impacts the oil prices in the country.

Provisional real GDP rate for 2013, according to the Ghana Sattistical Service is 7.4 per cent, a little less than the projected 8 per cent.  

Distribution of petroleum revenue, 186 million dollars was allocated to GNPC and 316.1 million dollarGhana Heritage fund.

Inflation rose from 10.1 in January to 13.1 in October 2013 due to fuel and utility tariff adjustment.

2014 budget deficit will be 9 billion or 8.5 % of GDP

Policy initiative to achieve middle income status

The Finance Minister announced the establishment of the Ghana Infrastructure fund to deal with the huge housing deficit.

Private sector partnership

Fiscal and social intervention polices especially in fight against poverty have been initiated.

On the risk management strategy of government debts, government has introduced liquidity management which uses short term borrowing,commercial projects designed with emphasis on revenue creation and align loan policies to capital budget and programmes as some of the measures.

Inspite of the challenges brought by the Single Spine Salary Structure (SSSS), government remains committed to its implementation.

Government will implement a white paper with immediate effect and from January 2014, existing market premium paid to workers will be abolished.

Book and Research Allowances will be repalced with a Research facility to be managed by the Ministry of Education.

Government has allocated 15 million cedis for the facility and the Education Ministry is to develop guidelines to make the facility sustainable.

Boost to private sector and SMEs

Government will be setting up a new SMS fund with 50 million cedis

The fund will be in collaboration with the National Board for Small Scale Industry to help in disbursement.

Importation of text books will be tax exempt in our effort in achieving Universal Primary Education

Importation of AIDS drugs will also be exempt from import duty and we propose raw material imported under the supervision of Ministry of Health should also be exempt from import duty.

Transparency and Anti corruption initiatives

Additional budget provision has been made to implement measures announced by the president in the fight against corruption.

A percentage of proceeds of corruption will be paid to anti-corruption agencies.

To address energy crisis in the country, the construction of ECG power sub stations in the Ashanti region will be completed. New bulk supply chains at Tema and the supply of  installation of management systems.

Installation of solar system for off grid basic schools,installation of solar system for remote communities and the continuation of solar lantern distribution programme.

In 2014, the Ghana Water Company will rehabilitate and expand 20 water treatment systems in Ashanti, Easter and Volta Region

300 million gallon of water treatment plant in Kpong

It will rehabilitate 10 dams in North, Ashanti Western Eastern and Brong Ahafo regions

Education

Government distributed 32 million exercise books to basic schools across the country in 2013.

In 2014, 10 million books and 10 thousand schools uniforms will be distributed and subsidies will be given to BECE to pupils.

Under the programme to remove schools under trees, 983, 000 classrooms blocks have been completed with the remaining 1246 nearing completion.

On the LEAP project, coverage had reached 71 thousand households nationwide and it is estimated that about 150 thousand households will be reached at the close of the year.

This budget has been prepared with due consideration for Ghanaians on the Better Ghana Agenda which is consistent with our social democratic principles.

The journey to economic prosperity is a marathon and we have realigned the budget to meet key national priorities.

To achieve our new economic fate, it will require some sacrifice but the future is bright.

On Football, we are profoundly proud of the Black Stars and I want to assure them their winning bonus will be paid immediately they return.