Ghanaian Finance Minister Targets Lower Deficit in Budget

(Bloomberg) --

Ghana’s finance minister laid out plans to slash the budget deficit, boost economic growth and make the nation’s public finances more sustainable to regain investor confidence.

The government will implement measures to boost revenue and rationalize expenditure that will lead to a reduction in the fiscal shortfall to 7.4% of gross domestic product next year, from a revised 12.1 percent this year, Ken Ofori-Atta told lawmakers Wednesday in Accra, the capital. The 2021 deficit was well above a previously projected 9.4% partly because of increased spending to offset the impact of the coronavirus pandemic.

“The signalling is clear,” Ofori-Atta said. “We are going to judiciously work our way out of our debt situation.”

Total revenue and grants is forecast to surge 43% next year to 100.5 billion cedis ($16.4 billion), while expenditure is estimated at 137.5 billion cedis, a 23% increase from this year. Growth in 2022 is forecast at 5.8% in 2022, Ofori-Atta said.

©2021 Bloomberg L.P.