2023 Budget to focus on fiscal consolidation, value for money, and IMF input

The 2023 Budget will be heavy on fiscal adjustment programmes, value for money and also be influenced by the outcome of the current negotiations with the International Monetary Fund (IMF) for an economic programme. 

This is what Joy Business has picked up from persons working on the Budget.

In addition, government is expected to come out with programmes that will help deal with the fiscal deficit and Ghana’s debt stock which is over ₵‎402 billion ending July 2022. 

Government on the 2023 Budget

Some financial observers close to government have stated that the 2023 Budget will be a “tight one” as some call it Austere Budget.

Speaking at an engagement in Washington DC on the sidelines of the Annual IMF/World Bank meetings, Minister of State at Finance Ministry, Charles Adu Boahen stated that government will demonstrate its commitment to achieving fiscal consolidation.

 “We will also come up with initiatives that will demonstrate government’s commitment for value for money next year,” he said.

According to Mr. Adu Boahen, the measures that will be introduced in the Budget will be influenced by the current economic environment.

“There will not be the need for a budget review when the IMF programme fully takes shape, going forward” he added.

When will the 2023 Budget be presented?

Ghana’s Public Financial Management Act requires that the Budget for the next financial year must be presented a month before the end of the year. 

This is to give more time for debate and the necessary approvals before the new financial year begins.

It is also aimed at ensuring that government is able to secure the required approvals needed to mobilize revenue and spend in time. 

Majority Leader in Parliament,   Osei Kyei Mensah Bonsu has stated that the Finance Minister may not be able to present the budget on November 15, 2022.

According to him, the current negotiations with the IMF may delay the budget presentation.

Meanwhile, Mr. Adu Boahen has noted that government is hopeful of closing a favorable deal with the IMF by the end of this year.

 “The IMF team is so far pleased with what Ghana Government has put forward to stabilize the economy” he stressed.

He added that some of the policy measures captured in government’s Post COVID-19 Economic Programme are similar to some of the policy measures that have been proposed by the IMF during the programme negotiation with government officials.

Cedi Depreciation and the Economy

Mr. Adu Boahen has stated that the recent pressures on the cedi are due to speculations

He assured that the Finance Ministry and the Bank of Ghana are working to stabilize the Foreign Exchange Market.

“The amount of dollar inflows that we have seen over the past months, is basically the same that government had secured in the previous years from the Eurobond”. Mr Adu Boahene noted.

“Over the past month, we have  seen the AFRIXEM loan come as well the Cocoa loan syndication facility and that is similar to the Eurobond inflows that will normally come during these times, therefore fears of the country not having enough reserves should not be an issue”.

He maintained that some reports in the media space have also not helped in stabilizing the local currency.

He is hopeful that necessary steps will be taken in the coming days with managers of the monetary space to  bring the situation under control.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.