Ghana reviews budget amid missed targets
from MASAHUDU KUNATEH in Accra, Ghana
ACCRA. – GHANA Finance Minister Seth Terkper was yesterday due to present to parliament a mid-year review of the budget statement and economic policy of government for consideration and adoption.
The mid-year review is expected to review targets set out by the ministry in the 2014 Budget Statement and propose new policies on how the ministry intends to meet those targets it fell short of.
Some of government’s macro economic targets announced by Tekper when he delivered the 2014 budget statement include an end of year inflation target of 9,5 percent within the band of plus or minus 2 percent, an overall budget deficit equivalent to 8,5 percent of GDP, gross international reserves of not less than 3 months of import cover of goods and services as well as overall real GDP (including oil) growth of 8 percent.
It appears government will not be able to meet them.
Inflation currently stands at 15 percent and the country’s budget deficit is still rising likely to go beyond the target set.
Gross international reserves at the end of June were 4,5 billion cedis corresponding to two and a half months of import cover, compared with 5,6 billion dollars at the end of December.
Economist John Gatsi said thus, all targets set must be reviewed.
Tekper is expected to detail to lawmakers how he intends to deal with the challenges leading to government missing its targets and also how he would ensure government meets its revenue targets.
Government expenditures including arrears clearance amounted to 13,1 billion cedis lower than the estimated 13,6 billion cedis.
However, industry players said Tekper was not likely to announce a reduction in expenditure as the country’s wage bill continued to grow.
– CAJ News
Short URL: http://cajnewsafrica.com/?p=421