Ghana 2023 Government Budget

On November 24, 2022, Ghana’s Finance Minister presented the 2023 budget to Ghana’s Parliament. According to the Minister, the goal of the budget is to significantly enhance revenue collection, reduce the cost of running government, expand local production, invest more to protect the poor and vulnerable, and continue expanding access to good roads, education, and healthcare for Ghanaians. 

The budget is anchored on a seven-point agenda aimed at restoring macroeconomic stability and accelerating economic transformation:

a.  Aggressively mobilizing domestic revenue.

b.  Streamlining and rationalizing expenditures.

c.  Boosting local productive capacity.

d.  Promoting and diversifying exports.

e.  Protecting the poor and vulnerable.

f.  Expanding digital and climate-responsive physical infrastructure; and

g. Implementing structural and public sector reforms.

The budget included several measures that potentially affect international trade:

a.  Taxes: Increase the Value Added Tax applied to domestic goods and services as well as imported goods and services by 2.5%, from 12.5% to 15%.  This measure is still under debate.  

b.  Government procurement: cut imports of goods and services by public sector institutions by 50%”

c.  The Ministry reaffirmed previously announced restrictions on issuing foreign exchange for the importation of several goods to encourage the consumption of locally produced products. Various lists of these goods have been announced to include goods such as: rice, poultry, vegetable oil and fruit juices, seafood, toothpicks, and ceramic tiles, among other products.  The Government of Ghana has not yet specified the specific tariffs lines that are affected or the how the actual enforcement of foreign exchange limitations will work.

d.  Purchases of new vehicles by Government authorities will be restricted to locally assembled vehicles

e.  There will be a freeze on new tax waivers for foreign companies and a review of tax exemptions for free zone, mining, and oil and gas companies.

f.   All non-critical government projects will be suspended for the 2023 financial year.

To learn more about the environment for doing business in Ghana, contact Commercial Service Ghana at Office.Accra@trade.gov or +233(0)30-274-1870 and see our Country Commercial Guide to Ghana for broader context on doing business in Ghana and our market intelligence reports for ongoing updates on specific topics and industries.