On Monday July 29, the Finance Minister, Ken Ofori-Atta, presented the mid-year review of the 2019 budget statement and fiscal policy to Parliament. Notable fiscal policy changes that were announced include energy and communication tax hikes and a request to spend more money (supplementary expenditure estimates) relative to the initial 2019 budget appropriation.

Prior to the mid-year budget, the Institute for Fiscal Studies (IFS) had reviewed the economy’s performance and provided recommendations to the government to address challenges identified. In what follows, we assess the notable developments in the mid-year review and make further recommendations to safeguard fiscal stability, which has come under threat from both revenue and expenditure management difficulties.

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August 6, 2019

IFS’ Assessment of 2019 Mid-Year Fiscal Policy Review

On Monday July 29, the Finance Minister, Ken Ofori-Atta, presented the mid-year review of the 2019 budget statement and fiscal policy to Parliament. Notable fiscal policy changes that were announced include energy and communication tax hikes and a request to spend more money (supplementary expenditure estimates) relative to the initial 2019 budget appropriation. Prior to the mid-year budget, the Institute... Read more
January 16, 2019
Leslie Mensah delivering post 2019 budget statement

IFS Ghana’s Post-2019 Budget Press Statement

IFS Ghana’s Post-2019 Budget Press Statement Ahead of the reading of the 2019 budget, IFS presented its views and expectations in key areas in a press conference. After the reading, the Institute has assessed the budget in light of its expectations. The Institute is once again meeting with the press to comment on issues it deems pertinent. The presentation will... Read more
November 20, 2018
Leslie Mensah delivering post 2019 budget statement

IFS Ghana’s Post-2019 Budget Press Statement

IFS Ghana's Post-2019 Budget Press Statement

Ahead of the reading of the 2019 budget, IFS presented its views and expectations in key areas in a press conference. After the reading, the Institute has assessed the budget in light of its expectations. The Institute is once again meeting with the press to comment on issues it deems pertinent. The presentation will cover:
  • Economic Growth and Job Creation;
  • Fiscal Policy Stance and Realism of the Projections;
  • Domestic Revenue Mobilization;
  • Expenditure Control and Rationalization;
  • Infrastructure Development and financing; and
  • Exiting IMF Financial Program and Legislating Fiscal Responsibility.
Our statement is intended to contribute to the public discussions as well as the debate that will take place in Parliament prior to the approval of the budget. Read the full statement here 
November 19, 2018

The 2018 Fiscal Policy Objectives and Targets: What has changed?

Fiscal Alert 15: The 2018 Fiscal Policy Objectives and Targets: What has changed?

Ghana has been facing fiscal difficulties since 2012 and the effects were at the forefront of the fiscal challenges that confronted the NPP government that came into office in 2017. For most of the past six years, large persistent fiscal deficits and a rising debt burden have posed an increasingly serious policy challenge for the country. The implementation of the single spine salary structure for the public sector in 2010, coupled with a sharp rise in energy-subsidy costs and fiscal transfers, rapidly increased public spending. Consequently, the fiscal deficit rose from 4% of GDP in 2011 to 11.6% in 2012, coupled with a rapid accumulation of government payment arrears. The emergence of a large fiscal deficit and external imbalances led to a slowdown in growth, putting the country’s medium-term prospects at risk. Government’s efforts to achieve fiscal consolidation since mid-2013 were undermined by policy slippages, external shocks, and rising interest cost. As a result, the fiscal deficit remained far elevated and above its target levels, reaching 10.7% of GDP in 2013 and 10.1% in 2014 (World Bank, 2017).
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