- Key adjustments include an upward revision of the GDP growth
- The government plans to increase revenue
- The government maintains its target of a primary surplus
The Ghanaian government has announced significant revisions to its 2024 macroeconomic framework in response to recent economic challenges, including a debt restructuring program.
The changes were outlined by Finance Minister Dr. Amin Adam during a mid-year budget review presented to Parliament.
Key adjustments include an upward revision of the GDP growth forecast from 2.8% to 3.1%, while inflation is projected to be lower at 17.5% compared to the initial estimate of 20.2%. The government also expects to reduce its overall deficit from 4.8% to 4.2% of GDP due to lower interest payments resulting from the debt restructuring.
To achieve these targets, the government plans to increase revenue through higher non-oil, non-tax income. However, total expenditure will be cut back by 2.1% primarily due to reduced interest payments. The financing gap will be covered by a mix of foreign and domestic borrowing, with a significant portion coming from the International Monetary Fund (IMF) and the World Bank.
The government maintains its target of a primary surplus of 0.5% of GDP, indicating a commitment to fiscal discipline.
However, challenges remain, and the success of these revised targets will depend on the effective implementation of the debt restructuring plan and the government’s ability to manage its finances efficiently.
