Terkper requests for GHC1.8 billion supplementary budget

The Minister of Finance Seth Terkper has asked for an additional budget of GHC1.8 billion for various intervention programme for the rest of 2016.

According to the minister, the demand has become necessary due to plunge in commodities prices, shut down of the FPSO Kwame Nkrumah and drop in crude oil prices on the international market.

Oil and Gas

Terkper said crude oil prices is now estimated to average a broad range of $40-$50/bbl.

He pointed out that the government had adopted an average crude price of $45.35/bbl.

Also, he said total petroleum receipts is now expected to be GH¢1.4bn as against GH¢2bn in the 2016 budget.

IMF Programme

The Finance Minister downplayed claims the IMF programme is in limbo. According to him, the third review meeting with the IMF was held in May 2016.

He added that most of December 2015 targets were met despite reports that the IMF was unhappy about Ghana's posture to the programme.

Nonetheless, Terkper was hopeful the third tranche of the IMF programme would be approved in August 2016.

Power challenges

Ghana is battling with an excruciating power supply that is affecting businesses and making citizens uncomfortable.

Despite the challenges, Terkper said the power sector has benefited from significant investment.

He noted that the country's installed capacity is enough to meet current demand.

He also disclosed that access to electricity in Ghana is over 82%.

He blamed the current power challenges on the lack of supply from

West Africa Gas Pipeline though it emerged today that gas supply cut was due to unpaid bills by the government.

Public debt

Terkper highlighted the decline of public debt from 72% at the end of 2015 to 63% at the end of May 2016.

He noted that this is the first time post-HIPC that Ghana has slowed down the rate of growth of debt.

He said the government would continue to use smart borrowing measures to ensure sustainable growth within the medium term.

According to him, GH¢986m of domestic debt was paid off with Eurobond proceeds.

GDP Growth

Terkper told MPs the economy grew by 4.9% in the first quarter of 2016 and added that government would persevere in bringing down Ghana’s debt level which stands at GHC99.9 billion according to the Central Bank figures.

He said for the first quarter of 2016; industry declined by 1.1%. Agric sector grew by 2.8%.

Assurance

Concluding his statement on the floor of the House, Terkper assured the nation that government will resist budget overruns, manage the public debt, fiscal discipline, investment in infrastructure and ensure that the Electoral Commission is adequately funded for this year's elections.