Ghana to miss growth targets, deficit reduction

Finance Minister of Ghana Ken Ofori-Atta. (Photo: Courtesy)

Ghana will miss its 2016 targets on growth, fiscal deficit reduction and its primary balance. It, however, intends to restore fiscal discipline and eliminate over expenditure, Finance Minister Ken Ofori-Atta has said.

The new government said this week it inherited debt from state-owned enterprises and government ministries of at least 7 billion cedis ($1.6 billion) and a budget deficit close to “double digits” compared with a 2016 target of 5 percent of GDP.

Ofori-Atta said the government is hopeful of meeting the challenges by enforcing strict financial discipline. “We are hopeful because we believe that we can restore policy credibility and we would be able to enforce the public financial management act to restore the discipline that is required to stabilize the economy,” Ofori-Atta told reporters.

Ghana, which exports cocoa, gold and oil, is halfway through a three-year, $918 million IMF programme aimed at restoring fiscal balance and promoting growth