The GHC 21 billion decrease in the government’s appropriation for the fiscal year 2023, according to Kojo Oppong Nkrumah, Minister of Information, is praiseworthy.
On Monday, July 31, Finance Minister Ken Ofori-Atta made a statement about the Mid-Year Budget.
Nkrumah noted that while there are still calls for additional budget cutbacks, the GHC 21 billion drop is praiseworthy.
“I think one of the first things to note is that the appropriation has been reduced by GHC 21 billion and I think for those who pay attention to fiscal policy or to the fiscal framework, that is a good thing except that GHC 10 billion of that is somewhere around interest payment and the rest is spread across the various expenditure lines.
“Nonetheless, it’s a reduction in the appropriation of the government expenditure and I think that it is something that should give people some comfort, that we are doing well to stay within the deficit constraints that we have imposed upon ourselves. But there are a lot of lessons that I think we need to learn moving forward and one of them for example deals with bolstering their relative stability that the Minister speaks about,” he said.
The 2023 Budget witnessed a significant reduction of GHC 21 billion in government expenditure, a move that the Information Minister praised as commendable. He emphasized the importance of this fiscal discipline in achieving economic stability and adhering to the deficit constraints set by the government.
Although a portion of the reduction was allocated to interest payments, the Information Minister highlighted that the overall decrease in expenditure showcases the government’s commitment to optimizing its financial resources and prioritizing development initiatives.
The current economic landscape serves as a crucial learning opportunity, prompting the government to make informed decisions to support the country’s economic growth. Nkrumah reiterated the government’s determination to strengthen financial stability, a central theme emphasized by Finance Minister Ken Ofori-Atta during the budget presentation.
The Mid-Year Budget review presented an opportunity to assess the country’s economic performance and evaluate fiscal policies, ensuring alignment with national development priorities.
The reduction in government expenditure reflects the positive impact of the successful Domestic Debt Exchange Programme (DDEP), which has created fiscal space for growth-enhancing reforms and managed rising debt costs.
The budget review also shed light on the government’s growth agenda, which places emphasis on inclusive development and private sector investments to foster job creation and sustainable economic growth.
Notable growth-oriented programs, such as the Planting for Food and Jobs (PFJ) Phase II, aim to bolster agriculture and value-addition, providing opportunities for the youth and promoting economic diversification.