Mid-Year Budget Review to offer glimpse into how the rest of the year will look like.
Finance Minister Dr. Mohammed Amin Adam will present the Mid-Year Budget Review to Parliament today, July 23, offering a glimpse into the economic outlook for the rest of the year. This will be his first budget presentation since taking office earlier this year following a cabinet reshuffle.
The review follows Ghana's recent debt restructuring deal with external creditors, which has provided some clarity on the nation's debt burden and impact on the country's short to medium-term revenue prospects. It is also conducted within the constraints of an International Monetary Fund (IMF) programme, which mandates specific targets for Ghana to qualify for the next tranche of funds disbursement.
Currently, the public is grappling with high food prices, soaring fuel costs, and increased utility tariffs, contributing to a harsh economic environment marked by a high cost of living and declining real incomes.
A statement from the Ministry of Finance indicates that the review will offer a comprehensive update on the implementation of the 2024 Budget. It will provide insights into the nation's economic and fiscal performance during the first half of the year, including updates on growth measures, revenue, expenditure performance, debt sustainability, and the IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG).
Dr. Amin Adam will also outline the economic outlook for the second half of the year, potentially revising policies to promote SME growth and ensuring the effective implementation of key government programmes. The review will address revenue measures, expenditure controls, and financing adjustments based on the past six months' economic performance.
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Given the current economic hardships, the public is eagerly anticipating policies that could alleviate the high cost of living, while investors with locked-up investments are hoping for commitments from the government to repay their funds, either in full or partially.
Previously, Dr. Amin Adam stated that the government does not plan to seek parliamentary approval for additional spending, suggesting no new taxes or major projects will be announced. However, he will need to detail how the government intends to mobilize more domestic revenue and control spending as required by the IMF.
This presentation will be the first in seven years without former Finance Minister Ken Ofori-Atta's direct involvement. However with his current role as Senior Presidential Advisor and Special Envoy for International Finance and Private Sector Investments, Mr. Ofori-Atta is expected to have contributed to the budget. Notably, this may be the first budget presentation since 2017 without Bible quotes, potentially replaced by Quranic references if Dr. Amin Adam follows his predecessor's format.
