Deputy Finance Chief Ampaabeng Hints at Reduced Government Expenditure in Today’s Mid-Year Budget Review

Deputy Finance Chief Ampaabeng Hints at Reduced Government Expenditure in Today’s Mid-Year Budget Review

Deputy Finance Chief Dr. Alex Ampaabeng has indicated a potential downward revision of government expenditure in today’s 2024 Mid-Year Budget Review to be presented on the floor of Parliament.

The current fiscal year’s budget, presented by former Finance Minister Ken Ofori-Atta in November 2023, set total government expenditure at GHS 226.7 billion.

This is set against a revenue target of GHS 176 billion, resulting in a budget deficit of 5.9% of GDP, an increase from the 4.6% deficit recorded in 2023.

Making the disclosure at the launch of the World Bank’s 8th Economic Update for Ghana report titled “Strengthening Domestic Revenue Systems for Fiscal Sustainability,” on Monday, July 22, Dr. Ampaabeng assured that the mid-year budget would not introduce new taxes and that there would be no supplementary budget.

He reaffirmed the government’s commitment to fiscal consolidation amid ongoing economic challenges.

“I am happy to also say that the mid-year budget is not bringing any new taxes and there will be no supplementary budget. With the current economic environment, it is about supporting businesses and not introducing new taxes.

“The Government is also committed to staying within the fiscal consolidation course and in fact, our expenditure without pre-empting the budget is likely to be revised downwards. We have a responsibility, a country to protect, and a fiscal path to chart. One that is sustainable and will make Ghana the gateway that we claim to be, and not only the gateway but also become the destination,” he quipped.

Finance Minister Dr. Mohammed Amin Adam is scheduled to present the 2024 Mid-Year Budget Review in Parliament today, Tuesday, July 23, 2024.

This review is expected to provide updated financial plans and an economic outlook for Ghana.

It will also address the status of major government initiatives and include adjustments to revenue measures, expenditure controls, and financing strategies based on half-year data.