The Minister for Finance, Dr. Mohammed Amin Adam, has indicated that over the past two years, the government has implemented some decisive measures aimed at restoring the country’s fiscal consolidation, economic stability, and growth.
While presenting the mid-year budget to Parliament, the Finance Minister expressed his satisfaction that the government’s implemented policies are producing the desired outcomes.
He indicated that growth continues to exceed the government’s expectations, as shown by the 4.7% growth rate reported by the Ghana Statistical Service for the first quarter of 2024, which exceeds the 3.1% recorded in the same period in 2023.
“Mr. Speaker, the last two years have been extremely challenging globally and Ghana has not been an exception. The difficult economic environment has truly affected businesses and families, particularly, the vulnerable in our society”.
“These challenges have severely affected households, increased cost of living and the creation of job opportunities. Our young people continue to seek employment opportunities beyond what the state can provide… it has indeed been a difficult time and I deeply empathize with our fellow Ghanaians”.
Dr. Mohammed Amin Adam
The Finance Minister also observed that inflation has decreased significantly, from 54% in December 2022 to 22.8% in June 2024, a 31.2 percentage point drop.
This decline, according to the Minister, suggests that achieving the government’s year-end target of 15% inflation is increasingly feasible.
Dr. Adams noted that the country is clearly on a positive path, with the economy recovering more robustly than expected.
He pointed out that the government’s strategic choices and policy initiatives are bearing fruit, as evidenced by the reversal of negative economic trends and the positive trajectory of all major economic indicators.
The Finance Minister reaffirmed the government’s commitment to maintaining its momentum towards rapid economic recovery.
He emphasized the government’s dedication to providing essential support for initiatives aimed at boosting growth, as evident in the decision to accelerate the implementation of key projects and policies.
Ghana Aligns Expenditure With Revenue
Furthermore, Dr. Mohammed Amin Adam further noted that the country has achieved a significant milestone by aligning its expenditure with revenue, thereby ensuring that it is indeed living within its means.
He observed that, in line with Ghana’s commitments under the IMF program, the country is on track to attain a sustainable fiscal surplus of 0.5% of GDP by year-end, marking a significant milestone in its economic recovery journey.
He noted that the government has successfully concluded the review of the Extended Credit Facility (ECF) with the IMF, which has led to the disbursement of the third tranche of $360 million.
He also noted that the Ministry has successfully concluded negotiations with Eurobond holders, covering a total of $13.1 billion, which will result in the cancellation of $4.7 billion of Ghana’s debt and provide debt relief of $4.4 billion from 2023 to 2026.
“Mr. Speaker, re-stabilization is real. We are determined to stay the course of our fiscal consolidation program. Increased attention will continue to be given to prudent management of approved expenditures and improved revenue mobilization”.
“…Accordingly, certain critical economic roads have been prioritized. We are structuring a financial arrangement that will ensure the timely completion of these strategic roads. The Accra-Kumasi highway, Accra-Takoradi highway, and Tema-Afienya road’.
Dr. Mohammed Amin Adam
The Finance Minister further noted that the government will collaborate with the private sector to address the national housing deficit and optimize land utilization in urban areas.
He reaffirmed the government’s commitment to leveraging Public-Private Partnerships (PPPs) as a key strategy for delivering critical public infrastructure projects, promoting collaborative investment and efficient execution.
Dr. Adam announced that the cabinet has approved the release of an additional GH₵1.5 billion to support individuals affected by the fund management company crisis, providing much-needed relief and a financial bailout to those with locked-up funds.
He pointed out that the government has embarked on significant reforms, including the creation of a toll reintroduction framework, the harmonization of the property tax system, and the establishment of an autonomous fiscal council to oversee fiscal policy.
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