This report seeks to provide an analysis of the perception of the business community relative to the provisions of the budget as presented by the Finance Minister in the 2019 budget statement. The results of the survey also serve as pointers for the government in their preparation of the 2020 budget. The survey covered three key areas; 1. assessing the impact of recent fiscal measures on businesses; 2. perception of the business environment and climate; 3. responses on the possible initiatives government could introduce in the 2020 budget to create a more conducive business environment. The KPMG pre-budget survey is a tool used to gauge the level of business confidence in the country and hope the insights from the survey will help the government in their deliberations.
This report seeks to provide an analysis of the perception of the business community relative to the provisions of the budget as presented by the Finance Minister in the 2019 budget statement. The results of the survey also serve as pointers for the government in their preparation of the 2020 budget.
There were three (3) key sections to the questionnaires:
The first consisted of questions identifying the impact of recent fiscal measures on businesses. It is evident from the report that the recent tax initiatives introduced by the government have had a significant impact on businesses.
Among the many responses received were sentiments which indicated that, the introduction of the 3% VAT Flat Rate scheme has been a disincentive especially to wholesalers in the Fast Moving Consumer Goods (FMCG) sector. It is difficult to charge the 3% VAT Flat Rate at every stage of the value chain. This is counterproductive and the result of this phenomenon could be that the government will record high VAT revenues whilst depleting the working capital of businesses.
The second section consists of questions regarding respondents’ perception of the business environment and climate; views from our respondents included concerns over access to financing, reduction in the cost of clearing goods, cost and quality of utility services. Key among these were concerns over the cost of funding and the stability of the Ghana Cedi.
The third and final section aimed to solicit opinions from respondents on possible initiatives the Government could introduce in the 2020 budget to create a more conducive business environment. Again, we see in the report that concerns over the stability of the cedi are critical areas that the government must consider to control in the 2020 budget.
It will be prudent for the government to regulate its expenditure pattern especially as the country approaches elections next year. The government’s ability to control its expenditure, among others, will be key in stabilising the cedi.
We trust that this report will serve as a reference and the insights provided will be considered by the government in the preparation of the 2020 budget.
© 2020 KPMG a partnerships established under Ghanaian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.