FISCAL ALERTS
December 14, 2015
Fiscal Alert 4 : Ghana: Implications of the Rising Interest Costs to Government One important feature of fiscal management in Ghana in the last few years has been the rapid rise in government borrowing, not just a rise in real debt but also a rise in debt/GDP ratio, pushing the country into a debt trap. With the country posting double-digit fiscal deficits in three consecutive years since 2012 and financed through increased indebtedness, the government is now confronted with a huge and increasing interest payment burden. This paper looks at the trends in interest costs to the government, causes, and what needs to be done to ensure efficient […]
November 30, 2015
Fiscal Alert 3: Public Debt and Sustainability: Whither Ghana? Ghana’s public debt stock has risen substantially since it enjoyed HIPC/MDRI debt relief in 2005-2006. The highly expansionary scal position in 2006-2008, nanced by external borrowing, triggered a very rapid deterioration in the country’s debt sustainability. This trend was amplied by the resulting balance of payments pressures and currency depreciation, which led to a revaluation of foreign currency-denominated claims relative to domestic GDP. Click here to read the full report
August 30, 2015
Fiscal Alert 2: Ghana – Impact of the Falling Crude Oil Prices This paper looks at the impact of the recent falling crude oil prices on Ghana’s economy. Oil production affects Ghana’s economic growth while revenues from oil exports and costs of oil imports affect the government budget and macroeconomic performance. Oil thus plays a complex role in Ghana and therefore a careful look at the implications of commodity’s price swing on the economy is very necessary. Click here to read the full report
July 31, 2015
Fiscal Alert 1: Ghana – The 2015 Mid-Year Budget Review On July 12, 2015, the government tabled in Parliament for discussion and approval a mid-year review of the 2015 Budget and supplementary estimates for the 2015 financial year. Prior to that, on June 30, 2015, the IMF had issued its first review press statement on Ghana’s Extended Credit Facility (ECF) program. This brief reviews the mid-year budget and assesses the basis for the government’s revision of the 2015 Budget. Click here to read the full report