Ghana government to cut domestic borrowing – Finance Minister

Finance Minister Seth Tekper has said that government would cut on its borrowing from the domestic market so as to enable the private sector to have access to credit.

“We are going to ensure a balance of taxation, a balance of expenditure and a balance of borrowing, so it is a balance of all these. So Government can reduce its borrowing from the market so private sector can have the ease of credit in the market,” he said.

Mr Tekper was speaking at a stakeholders meeting on the 2013 budget, which was attended by representatives of various institutions including the Trades Union Congress, to look at the various proposals made to government on the budget.

He said it was important to consult with the stakeholders of the industry and tax payers to discuss the issues and reach consensus on the way forward.

Mr Tekper said the general theme of 2013 budget would be the fiscal situation, payment of subsidies and implementation of the Single Spine Salary Structure and expenditure that goes into public service.

He said to ensure smooth operations all government expenditure would be aligned in order to control expenditure.

Mr Tekper urged the Ghana Revenue Authority to redouble its efforts to increase revenue in the face of the low tax regime campaign.

He said while government was committed to social interventions, targeting should be done in such a way that it benefits those it is intended for.

“We must also guard against smuggling of subsidised inputs so that we don’t spend hard earned foreign exchange importing these inputs and then it goes to benefit citizens of other countries,” he said.

On the financing of small medium scale enterprises (SMEs), Mr Tekper said it should be undertaken with the general support to the private sector.

Mr Tekper said micro-finance and private sector reforms must impact on SMEs.

Source: GNA