The proposal is coming at time when there is a debate whether the policy should be reviewed or abolished since it’s consuming chunk of government revenue.
According to the 2022 Mid-Year Budget Review, interest payments, which dominated government expenditure for the first half of 2022, stood at GH¢20.4 billion, representing 4.5% of Gross Domestic Product (GDP). This was higher than the targeted amount of GHC¢19.05 billion.
This is additional unplanned expenditure to government which is expected to heavily increase public sector wage bill, thereby widening the fiscal deficit.
Seventy communities across nine Island districts through mini-grids, 505 communities in 11 districts through standalone solar photovoltaic (PV) systems in the country.
The issue of restructuring debt is a very complicated issue especially with the private sector and the Eurobond etc. We need to decide among ourselves on what type of structure that will be useful to us. We have essentially about 50/50 with regards to domestic and external debt”, Ken Ofori-Atta expressed.
According to Finance Minister, although the economy is in difficulties now, he believes the it is heading in the right direction, and therefore government will find alternative ways of refinancing the country’s debt.
According to the 2020 State Ownership Report, the SOEs recorded a GH¢2.61 billion loss in 2020, although that was about 50 percent better over the 2019 aggregate loss of ¢5.16 billion. This has pushed the Finance Minister, Ken Ofori-Atta, to call on the managements of the SOEs for more urgent and collective work to address these losses. But, the economist stressed on his
The government is of the believed that expenditure cut alone will not be enough to revive the ailing economy and that the government’s focus is two-fold: to control expenditure and to raise more revenues domestically.
The immediate past Board Chair of Ghana Revenue Authority has objected to an official comment from the Finance Minister purporting that the country has no financial resources to pursue its budgetary allocations and developmental agenda.